#OutToLunch: Predictable incomes, culture of paying debt key in lowering interests on loans

By Denis Jjuuko

You have probably heard somebody say these not very magical words; “It is very little money,” especially when they are being asked to pay back some money, they were so desperate to borrow. Or somebody has accosted you for depositing money on a particular mobile money line without asking them first as they had a debt on a line on which you deposited.

You also probably know somebody who came crying to borrow some money and has since switched off their phones or no longer answers your phone call. Some wise people have advised Ugandans to only lend people money that they can afford to lose. Imagine!

This habit of failure to pay back is extensive. I saw a post with a quote attributed to the Bank of Uganda Deputy Governor saying that the Uganda Bankers Association had told him that commercial banks in the country have Shs5 trillion of loans in courts.

Apparently, once some people borrow money from the banks, when payment time comes, they run to court disputing the amount to pay or the legality of the lender. As you know courts take their time to decide non-political cases. It can be years before a judge is allotted the case and then the scheduling and adjournment can take forever. As the judge is about to give his judgement, he is transferred and another judge is appointed to hear the case. Adjournment of cases is the norm in Ugandan courts. In the meantime, the lender is losing money and the borrower is in court purposely to play the long game.

It’s perhaps one of the explanations for the high interest rates we pay on loans thereby affecting the country’s economic growth. Usually, we only complain about the banks and not our failure to honor our loan obligations. Failure to pay debt is one of the major impediments to growth.

In his top selling autobiography, legendary businessman, Bulaimu Muwanga Kibirige (BMK) and now deceased, credited his growth on supplier’s credit where he received goods on credit and paid back. He said that many of his colleagues who always found ways not to pay back suppliers had their businesses collapse within a few years. Some of these people, he said, had been wealthier than him. By the time of his death, some used to call him for financial assistance.

Of course, debt payment issues aren’t squarely on the shoulders of the debtors. The banks aren’t innocent either but there are also other issues why interest rates are high in Africa. The size of the economy, political instability, high levels of poverty and high inflation rates among others could provide richer explanations. But the borrowers can’t always be absolved.

The majority of people in Africa have no predictable income since they largely work in subsistence agriculture, growing food for household consumption with the little surplus left to sell. Even those who practice commercial agriculture, the majority have small gardens and always unsure of their income.

Today the tomato harvest is good but everyone has had a bumper harvest thereby crushing the prices. Next season, few farmers have remained in the business and the prices are high prompting everyone to grow the tomatoes the following season. By harvest time, there are simply too much tomatoes and the prices are down again. That is the circle most smallholder farmers operate in.

Banks looking for somebody to lend money won’t even bother giving them a call. They know that chances of a borrower not being able to pay back are high. If they are to lend, they extend as little as possible (at high rate) which is unable to help get a farmer out of poverty.

Yet 50km away, in the country’s capital, the tomatoes are on high demand that some are being imported into the country either as fresh tomatoes or factory processed tomato paste (look at the shelves in your local supermarket).

This being the rain season, there are reports that farm gate milk prices have crushed by more than 50 percent. In December, at the first sign of a dry season, the prices will go up again. But farmers have no alternatives to preserve their milk and wait for the prices to go up. The money they would have made due to increases in the prices in the dry season will go into looking for water for the cows. You can say that about almost every crop or produce.

If we want lower interest rates on loans, there is a need to ensure that the majority of our population who are involved in agriculture earn a predictable income, the judiciary must become efficient in disposing cases (Katikkiro Mayiga writes about this in his book Uganda:7-Key Transformation Idea), and cultivate a culture of people paying back their debts and stabilize the economy and the politics.

The writer is a communication and visibility consultant. djjuuko@gmail.com

Tags: Denis Jjuuko, Government of Uganda ., Out to Lunch, Prime Time Communications

Out to Lunch

#OutToLunch: It is our turn to eat, the politicians have eaten enough

By Denis Jjuuko After nearly five years of planning, positioning, and scheming, it is time for implementation of strategies that could lead many people to their coveted offices. For some, the first hurdle is to convince their parties that they are qualified to stand for election in the primaries to represent them. To others, it is to decide whether to stand as independents and in which particular constituency. The political fever is rising across the country. At funerals, weddings, sports, religious and cultural events, candidates are aligning themselves sometimes with causes they don’t believe in while many times mudslinging others. Resources are not being spared. Unfortunately, human beings are not being spared too. Ssembabule seems to be an epicenter of violence. An incumbent even threw in the towel claiming the violence is too much. Before the ink on her words dried, a youth was shot dead! It is going to be long eight months or so. Just like it was in 2021 and in many general elections before. Usually, the news that comes out is of violence and tension leading to many people to fear. Internet is usually cut off at some stage. Some radio stations also get blocked. Tear gas becomes part of the oxygen people breathe in. But should politics be like that? Over the last few years, it has become a job. An assurance for many of those who win to earn significantly over a five-year period especially for those at the top end of politics—those who end up as Members of Parliament. They are not only paid well; the president usually appoints a significant number of them into his cabinet—an opportunity to earn even better. Maybe that is the reason it is a do or die for many candidates like we have witnessed so far in Ssembabule. Of course, many of those who stand for office won’t be elected and even many incumbents won’t win their positions back. Ugandan politics below the presidency tends to give an opportunity to a lot of new comers. They call it a ‘turn for someone else to eat.’ Issues are less discussed on what can really transform a country yet that is where we need to go. The country cannot develop if we are voting people because it is a “turn for someone else to eat.” That way you send people to elective offices who stand for nothing and therefore go wherever the wind blows. That way the country remains poor because politics is a core component of economic development. People who have no values won’t fight for anything that affects the poor. They will only be concerned about themselves and their immediate families. A few millions in their pocket, and they pass laws that lead the country to nowhere. Corruption becomes their middle name and scheming the religion they believe in. Yet the issues that affect all of us affect them too. If the road to a Kampala suburb is potholed everywhere, a politician who steals money to build a residence or rental apartments or a hotel will suffer too. He may have a government Landcruiser but for how long? His tenants or patrons could shun the apartments or the hotel because of inaccessibility. The building may end up as a white elephant. And if he is voted out, he may not have the resources to renovate it. When there are no doctors and drugs in health facilities, the politician may not have enough time to be flown to Uganda’s referral hospitals for the rich in Nairobi or New Dehli. At the end of the day, stolen money at the expense of public services won’t be able to save him. As we spend more and more time on radio and television talkshows and watching TikTok clips on a loop of politicians, we need to put them to task on what they tend to do. Particularly, how are they going to enable young people find meaningful jobs or any job at all? How are they going to help the elderly live decent lives? What is their plan on education, health, transport, and agriculture among other key sectors? Also, there is a need for civic education so that our people understand that the best thing for them is not to be given a t-shirt or a piece of soap or even a hoe, rather to have something that they do that can enable them buy such stuff on their own. It is time for the population to eat. The politicians have eaten enough. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025

Out to Lunch

#OutToLunch: Poor pay of humanities teachers may take us back to Covid days

By Denis Jjuuko It is more than five years since the dark days when many people who could afford a TV set spent their days on the screen, watching numbers as they were being updated in real time of the people who were dying. Those without TV sets, clung to their small world receivers. The world was coming to an end. The televised address of the president became the most anticipated event. People waited for his trademark “therefore” with abated breath. Would he unlock the country or extend the lockdown? The children stayed at home instead of school for two years or so. The majority of those from middle income families deceived themselves that they were learning online. The majority of teachers also convinced themselves that they were teaching. The truth is learning wasn’t taking place. Those from poorer households loitered the streets and villages. Some of them have never stopped loitering up to today. Many became teenage mothers — their lives thrown into the world they had never imagined. A cycle of poverty on the horizons. Covid-19 is something many people will never forget. Over the weekend, a video emerged online of kids in a secondary school lounging in the vast fields and shrubs that make their compound. They were pretending to revise their books only for the camera to show many coupling. Some were even sleeping in the chests of others or very close to each other. It is hard to tell when the video was shot or which school it was. However, the concern of many people was that the ongoing humanity teachers strike is leading to many kids spending time discovering the anatomy of their bodies instead of being in classrooms learning. If teenagers spend their time discovering what they shouldn’t be discovering, many will end up pregnant or with sexually transmitted diseases. Remember, that we haven’t yet recovered from the teenage pregnancy crisis as a result of Covid-19. The humanity teachers are striking because government decided to pay science teachers more in a bid to stimulate innovation and transformation. The humanity teachers are calling this discriminatory arguing that they should also be paid as much as their science counterparts. Scientists may do a lot to transform a country but they can’t do it on their own. Innovations for example must be marketed. Lawyers must exist to help solve legal problems that may crop up as a result of scientists disagreeing on their innovations or how to share the proceeds. Getting humanities teachers back to the classrooms should be urgently handled so that we avert a crisis that may happen as teenagers loiter around school compounds for days indulging in activities that they shouldn’t be involved in. Although the country may decide that sciences are the best way to develop Uganda, it should not come at the expense of those who may want to pursue humanities courses. All learners should be given an equal opportunity to study want they want. Both those who study sciences and humanities have a role to play in the development of our country. However, government can find other ways to incentivize both learners and teachers that is not seen as discriminatory. For examples, learners, will want to study courses that lead to employment with higher pay. Their parents and/or guardians will push them to that too. But if they see doctors striking every day for poor pay, they will not see any reason why they should spend many years in medical school instead of doing something else. If we can’t pay our doctors enough money to ensure they work in the wards and theatres, however much we pay science teachers won’t have any impact on medicine for example. If kids go to university to study mechatronics engineering and there aren’t enough organizations willing to take them on for internship or offer them jobs after graduation, they will encourage their peers not to do the course. If they think the opportunities are in trading crypto, that is where they will go. If they see social influencers living the life, that is what they will want to do. The reason many parents of years ago wanted to see their kids become doctors, lawyers and engineers among other professions was because they had seen how those who studied such lived their lives. Parents always want the best for their children. Although paying science teachers is important, paying humanitiess teachers is as important otherwise a time will come when we are now oversupplied with scientists at the expenses of humanities. Both sciences and humanities need each other. And for now, a major crisis looms if we don’t get the kids back in classrooms regardless of what they are studying. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025

Out to Lunch

#OutToLunch: An effective public transport would shut out road fines complaints

By Denis Jjuuko On 21 November 2023, the Kampala Capital City Authority (KCCA) issued a procurement notice for “Consultancy Services for the Detailed Design Update of the Bus Rapid Transit System (BRT) for the Greater Kampala Metropolitan Area (GKMA)” after receiving “financing from the African Development Fund towards the cost of the Kampala City Roads Rehabilitation Project (KCRRP).” The notice further indicated that “the main objective of the assignment is to review and update the detailed designs for the BRT system that were prepared in 2014 to reflect current and expected travel needs in Greater Kampala Metropolitan Area (GKMA)”. That was probably the nth time such an advert had been published. Given our procurement bureaucracy and the speed at which we do things, probably the consultant has never been hired or has not gone very far in “reviewing and updating” the detailed designs. You will notice that in 2014 or 11 years ago, this work was done. And of course, it wasn’t implemented. During Jennifer Musisi Ssemakula’s tenure as executive director of KCCA, we were even promised cable cars. Many years later, not even a cable has been installed. Had all these plans been implemented many years ago, the government would not have been struggling to implement the so-called intelligent transport management system also known as the punitive road fines. A BRT system that works would have reduced traffic congestion on Kampala roads enabling motorists to drive within acceptable speed limits to reach their destination on time. One of the reasons people tend to speed is because they are catching up with time lost in traffic. Somebody who takes two hours to complete a 5-10km route that leads them to the Kampala Northern Bypass or the Entebbe Expressway will push the gas pedal once they get on any of those roads. They do so not because they are reckless but because they need to be somewhere at the right time. Government officials especially ministers understood this and many of them got themselves lead cars. That way they can manage the traffic gridlock in Kampala faster and reach their destinations on rare occasions on time! They know driving at 30kph is not practical without an effective public transport. Although a car is an ultimate dream for many Ugandans, the major reason people drive is because of the unreliability of public transport in Kampala. That is why during school holidays, many people park the cars and use public transport. There has always been an argument that Kampala roads are narrow to create BRT lanes and such. If you removed street parking, lanes would be created for buses and emergency vehicles. By emergency vehicles I mean emergency vehicles such as ambulances and fire trucks. Not everyone with a luxurious SUV. Spaces can easily be created on dual carriage roads where overpasses could be created for the BRT and even the light rail transit system. In fact, in many cities, there are sections where trains and buses use the same infrastructure. Toll stations would then be created so private cars entering some parts of the city are heavily charged thereby pushing people to use the BRT and other public transport means. Since there would not be street parking on some roads and there would not be a need to drive to the city, entrepreneurs would be encouraged to invest in public parking near stations where people can leave their cars when getting onto the BRT or trains. Or even in Kampala for those who insist to drive. Uganda would stop losing a lot of money in wasted working hours and improve Kampala’s air quality thereby reducing the cost of healthcare. In fact, many people will become healthier as they walk from their work places to the stations to catch a bus or train. Effective public transport is one of the ways to make a city modern. And it isn’t out of this world. Cities like Dar es Salaam have tried it and it is somewhat working. Uganda already has the buses at its Kiira Vehicle Plant in Jinja. Why not put them to use? Then after implementing this in Kampala, trains could be extended to other major cities. If we had trains to Kasese and Packwach a few years ago, why can’t we have them now? We usually claim that there is no money. If we can cut down on some of the excesses in public administration, we would be able to achieve these things easily. We can also issue infrastructure bonds and encourage Ugandans and others to participate in them. Eliminate corruption and briefcase companies from winning tenders and we are good to go. If the majority people used an effective public transport system, nobody would argue about excessive fines on Lugogo Bypass. The writer is a communication and visibility consultant. djjuuko@gmail.com

July 16, 2025