The Ministry of Finance and National Planning has warned all individuals and companies involved in money lending, famously known in the streets as ‘kaloba’, to either get properly licensed or risk being dragged before the law.
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According to the Ministry, any person or business conducting money lending must hold a valid licence issued by the office of the Accountant General under the Money Lenders Act, Cap 398 (3) and not just the court-issued certificate many have been flashing around.
If someone is out there throwing cash like a walking ATM and calling themselves a money lender without a licence, the Ministry of Finance says the free ride is over as such activities are illegal and punishable by law.
“Any person who operates a money lending business without a valid licence shall be guilty of an offence and shall be liable to a fine, imprisonment, or both,” the Ministry warned in a statement.
The Ministry further assured the public that it will strictly enforce the law and bring any defaulters to justice.
The move comes as part of government efforts to formalise the microfinance and informal lending sector, protect borrowers from exploitation, and ensure financial institutions operate within regulated frameworks.
By George Musonda
Kalemba June 25, 2025
