"NIRA would like to draw your attention to Section 69 of the Registration of Persons Act, 2015, which clearly states that an issued National Identification Card remains the property of the Government of Uganda," reads the Legal Alert Notice No. 1 of 2023 from NIRA
The National Identification and Registration Authority (NIRA) has warned Ugandans and stakeholders in the money lending business to stop using National Identity Cards as security for obtaining loans because it's illegal.
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Therefore, NIRA warned money lenders who have been retaining National Identification Cards as security for loans issued to individuals to stop the practice because it violates the rights of the cardholders.
"The public is encouraged to report to the nearest NIRA office any person who has retained their national identification card as security or collateral. National identification cards are vital government-issued documents that serve as proof of identity and citizenship," the statement read.
Most money lenders in the country require individuals seeking to acquire loans to present and deposit original copies of their National Identity Cards, which they pick up upon paying back the loan.
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NIRA warned money lenders who have been retaining National Identification Cards as security for loans issued to individuals to stop the practice because it violates the rights of the cardholders.
"The public is encouraged to report to the nearest NIRA office any person who has retained their national identification card as security or collateral. National identification cards are vital government-issued documents that serve as proof of identity and citizenship," the statement read in part.
