MPs put microfinance institutions on spotlight

16Jun 2016
The Guardian Reporter
The Guardian
MPs put microfinance institutions on spotlight

WOMEN Members of Parliament yesterday raised their voices, calling on the government to intervene in the activities of microfinance institutions in the country.


The MPs came together in Parliament in protest against some microfinance institutions, claiming that some were bent on rendering women become poorer.

According to them, some families have found themselves in marital conflicts when women fail to repay loans offered to them by the institutions due to unbearable interest rates.

“These microfinance institutions set high interest rates when they issue loans, some up to 30 per cent. Why does the government allow them to do as they please expense of poor women?” queried Martha Mlata (CCM-Special seats).

She said such conflicts have rendered some children homeless (street children) after the collapse of marriages. “This trend calls for government intervention,” she stressed.

Munde Tambwe (CCM-Special seats) voiced similar concerns on the microfinance institutions.“When women fail to service loans offered by these microfinance institutions they rush to confiscate family property, something that sparks conflicts with their husbands, culminating in divorces,” she said.

She called on the government to launch an investigation on some of these institutions.“The government is expected to give answers on these concerns when Dr Mpango comes to wind up the debate on Monday,” she added.