In Mubende District, Uganda, a moneylender identified as Vianey Kalihuungu, also known as Nzabale, has been arrested for allegedly operating a private detention facility to handle defaulting clients.
Kalihuungu, who runs Tuungane Investments Limited, reportedly detained clients unable to meet their loan obligations, escalating fears among residents and local leaders.
The Resident District Commissioner (RDC) for Mubende, Al-Hajj Umar Lule Mawiya, directed the police to arrest Kalihuungu after numerous complaints from residents across Kassambya Constituency.
Residents claimed the moneylender was charging exorbitant interest rates and detaining clients who were unable to pay in full.
Amos Bukiiko, one of the residents, narrated his ordeal, stating that he was detained by Kalihuungu and forced to pay UGX 1.2 million, but only received a receipt for UGX 800,000. “We are here with many challenges and fears because Kalihuungu has detained people who have partially paid off their debts,” Bukiiko said.
Other residents also shared similar experiences, claiming that Kalihuungu confiscated land titles as collateral but failed to return them even after loans were fully repaid. Vincent Tumusiime Kissanja, a district councillor, cited a case involving a woman named Birungi who had surrendered a land title for 10 acres, only to have Kalihuungu allegedly refuse its return.
Kalihuungu denied all allegations, asserting, “I have never detained anyone or confiscated property.” However, upon reviewing his business documentation, RDC Mawiya found that Kalihuungu lacked the necessary legal authorization to operate, leading to his arrest and detention at Mubende Central Police Station.
Police investigations into the allegations are ongoing, with local authorities emphasizing the need to protect residents from exploitative moneylending practices.