A financial storm has erupted after Terego District Woman MP, Hon. Rose Obinga, confronted staff of Premier Credit Limited over alleged exploitative lending practices, including a viral 100% interest rate scam. The scandal has raised alarm over the company’s conduct and its potential threat to a $1.5 million investment from Swiss impact investor Enabling Qapital.
Hon. Obinga stormed the company’s offices in a tense exchange, accusing Premier Credit of trapping low-income earners, civil servants, and farmers in a calculated debt cycle. In a viral video, she condemned the company’s alleged habit of issuing loan payoff quotations only once a month, saying this practice unfairly increased borrowers’ repayment amounts through continuous interest accumulation.
“How can you give a quotation only once a month when someone wants to clear their loan?” Obinga demanded. She cited an example of a borrower who took UGX 1 million and ended up repaying UGX 2 million, calling Premier Credit a “root for stealing” and accusing it of exploiting poor Ugandans.
The allegations have placed Premier Credit’s operating license under scrutiny and embarrassed Enabling Qapital, which invested $1.5 million to promote financial inclusion. Sources revealed that Premier Credit executives sought a meeting with the Ministry of Finance for political protection but were reportedly turned away, with officials insisting the company “should carry their own cross.”
The Microfinance Regulatory Department has since summoned Premier Credit over the accusations, though insiders say company representatives failed to appear for the meeting.
President Yoweri Museveni has repeatedly cautioned moneylenders in Uganda against overcharging borrowers and engaging in exploitative practices — warnings that now add to the growing pressure on Premier Credit’s operations.
