The National Identification and Registration Authority (NIRA) has advised Ugandans against using their national identification cards as collateral for loans.
According to NIRA, the national ID is the property of the government and should exclusively serve as proof of identity and citizenship.
NIRA has also issued a warning to money lenders, cautioning them against requesting national IDs from the public as a requirement for obtaining loans.
Earlier this year, the police issued a statement emphasizing that the practice of using national IDs as collateral for loans is both illegal and a criminal offense.
Earlier this year, Police spokesperson Fred Enanga said that national IDs hold no economic or financial value and must be reserved solely for identification purposes.
Enanga stated, “Any act involving the confiscation, taking, or using a national ID as collateral is deemed criminal. This practice deprives the owner of the ability to utilize the ID for identification purposes and other essential transactions, including travel.”
Meanwhile, NIRA is in the process of renewing all national IDs that are approaching their expiration dates, ensuring that citizens continue to have valid and up-to-date identification documents.