The Minister of State for Internal Affairs, Gen David Muhoozi, has announced that upgrading the national ID system by introducing digital identity cards (E-IDs) will eliminate the practice of money lenders demanding IDs as collateral for loans.
The minister made the remarks while presenting a statement on the Confiscation of National IDs by Money Lenders as Collateral, following complaints by Members of Parliament regarding the security risks associated with such practices.
While addressing Parliament on Wednesday, October 23, 2024, Muhoozi urged Ugandans to condemn the unacceptable behavior and report any moneylenders involved in these schemes.
“The government of Uganda is committed to protecting the rights of all its citizens and ensuring that the National Identity Card serves its intended purpose: facilitating easy access to services without exploitation,” Muhoozi said.
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Muhoozi further said that the majority of Ugandans currently lack access to the Internet or smartphones, which affects the implementation of the E-IDs. He, however, added that their implementation will solve the challenge of accessing information.
He emphasized that depriving someone of their national ID without authority is an offense punishable by law.
“A person who unlawfully keeps or takes possession of a national identification card is liable on conviction, which is Ugx. 960, or improved imprisonment not exceeding 3 years or both,” Muhoozi noted.
The rollout of E-IDs is expected to improve security, streamline access to basic services, and expand the scope of financial inclusion. By linking national IDs to a secure digital platform, the government aims to eliminate the use of physical IDs, which are prone to theft. This will provide citizens with protection from exploitation in the form of loan sharks.
As Uganda moves toward implementing these E-IDs, this move helps protect people’s rights while enabling the country’s socio-economic development.
