Uganda has seen rapid growth in digital lending platforms, including MoKash (a partnership of MTN & NCBA), Airtel Wewole (Airtel & PostBank), QuickLoan (Airtel & Housing Finance Bank), and others like ManguCash. These services are largely facilitated by telecoms but powered by banks and fintech backends such as KCB and PostBank.

Mobile loans are attractive for their ease of access, requiring no collateral or credit history, and can be accessed 24/7 using USSD or mobile money apps. Loan amounts typically range from UGX 3,000 to 1 million, with repayment terms of 14–30 days. However, interest rates are very high compared to traditional banks, averaging 6.75% to 15% per month, and penalties apply for late payments or rollovers.

Supporters of digital lending argue it empowers the unbanked, enables small business capital, and is a necessary alternative in a cash-strapped economy.

However, critics warn it is creating a debt trap due to overborrowing, potential ground for scammers, exploiting the financially vulnerable, and lacks the transparency and consumer protection standards found in traditional banking.