By Rogers Sanyu | August 25, 2026
Kagadi
Farmers and members of the business community in Kagadi District have called for lower interest rates on loans, saying the high charges are discouraging them from borrowing for agriculture and business.
The concerns were raised on Monday, during a sensitization workshop held at Kagadi District Headquarters by the Uganda Co-operative Alliance, in partnership with the Bank of Uganda.
The workshop focused on the Agricultural Credit Facility and the Small Business Recovery Fund, which provide affordable loans to farmers and small businesses.
Residents have called for simpler loan procedures, saying many small-scale farmers struggle to meet the requirements set by financial institutions.
Kagadi District Chairperson Ellegard Tumusiime supported the concerns, urging financial institutions to reduce interest rates on agricultural loans.
He said government-supported funds should be made more affordable so that farmers at the grassroots can benefit.
However, Mugerwa Edward, Director of Administered Funds at the Bank of Uganda, said the funds are available through financial institutions across the country.
He said enterprises can access the funds at an annual interest rate of 12 percent and small scale businesses at 10 percent, with repayment periods of up to eight months.
Mugerwa encouraged farmers, traders and other businesses involved in agriculture to take advantage of the funds to increase production and improve their livelihoods.
