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  • RDC Warns Money Lenders Against Seizing Borrowers’ Property Over Inflated Debts
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RDC Warns Money Lenders Against Seizing Borrowers’ Property Over Inflated Debts

The Rukungiri Resident District Commissioner has issued a stern warning to money lenders against confiscating property over unpaid loans, describing the practice as exploitative and legally questionable. Speaking during a community address in Rweere Cell, the RDC also promised to assist a local resident in challenging a court decree that transferred ownership of her land to another buyer, following a disputed loan agreement.
Admin 4 hours ago (Last updated: 4 hours ago) 3 minutes read
1787971112769

RUKUNGIRI – The Resident District Commissioner for Rukungiri, Bron Kikanshemeza, has warned money lenders against taking borrowers’ property over unpaid loans, accusing them of inflating debts beyond the amounts originally borrowed.

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The RDC issued the warning while addressing residents of Rweere Cell, Ngoma Parish in Nyakishenyi Subcounty, following a dispute involving a resident, Alice Kyensi-erikora, and Naboth Mucunguzi over a banana plantation.

Kikanshemeza charged residents to use known financial institutions like SACCOs to access loans, saying money lenders, commonly known as “kafuna,” are causing disputes over loans and property.

Resident of Rweere Cell, Ngoma Parish in Nyakishenyi Sub-County During the Land Dispute Involving Alice Kyensi-erikora, and Naboth Mucunguzi

Kikanshemeza explained that, as a representative of the President at the district level, his office is mandated to oversee security matters, including lawful interventions in land-related disputes.

Cue in RDC On Land Disputes. RR

Kyensi-erikora recounted that she borrowed 100,000 shillings from money lender Henry Matsiko in 2021, with an agreement to repay the principal after three months, plus a monthly interest of 10,000 shillings.

The victim, Alice Kyensi-erikora, passionately appealed to the RDC to help her reclaim her plantation, emphasizing that it remains her sole livelihood for feeding her children and covering their school fees.

Cue in: Alice on Owning The Land. RR

Kyensi-erikora revealed that after she failed to repay the loan on time, Matsiko allegedly went ahead and sold the land, along with her thriving banana plantation, to Naboth Mucunguzi, without her consent.

However, Naboth Mucunguzi maintains that he purchased the land legitimately for 1.5 million shillings and holds a valid court judgment and decree granting him full rights to occupy and utilize it.

Cue in: Naboth On The Land. RR

The RDC said he cannot ignore the court ruling, but vowed to assist Kyensi-erikora in seeking a review, and urged her to keep using her plantation while the District Security Committee looks into the matter.

The Nyakishenyi LC III Chairperson, Wednesday Twinomujuni, revealed that the dispute has festered for nearly three years, blaming money lenders for secretly inflating debts and manipulating agreements to unjustly seize borrowers’ property.

He called upon courts and local leaders to forge a tighter partnership and step up to shield vulnerable, unsuspecting residents from these predatory lending schemes while restoring their trust in justice.

Cue in: Wednesday on Money Lenders. RR

As the District Security Committee prepares to delve deeper into the matter, all eyes remain on the quest for a just resolution that safeguards the rights of the poor against exploitation.

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