Phone Credit Scam: Government Urged to Crack the Whip on Rogue Phone Dealers Cheating Ugandans on Credit

By: Meddy Walusimbi Omuyiribi/ Friday, 24th July 2026

KAMPALA– With TikTok, Instagram, X and Snapchat taking center stage in the lives of Ugandans, it’s almost impossible to find a youth or adult without a smartphone. This digital boom has made gadgets like iPhones and Samsung a basic need, not a luxury. And in the middle of that demand, a new breed of “rogue dealers” has emerged. They don’t steal with guns. They steal with contracts, apps, and credit.

My Story: From iPhone 13 to “Back to Gomba“

Around this time last year, I got the urge to join the dotcom trend. The phone I had couldn’t capture the classy videos and photos needed to compete online. I fell in love with an iPhone 13. Cash price: about 1.4 million shillings.
A friend told me about dealers in Pioneer Mall who could give me the same phone on credit after a deposit of 500,000 shillings. The next day, I emptied my bank account and went to Pioneer Mall. I presented my National ID. In minutes, the deal was done.
Deposit: 500k.
Weekly payment: 80k.
Total cost to own: 2.4 million shillings.

That’s a 1 million shilling markup just for paying in installments. But I didn’t see it then. I was too excited. I even bought a ring light to shoot videos at night. I paid for the first 3 weeks. On week 4, my money ran out. Then the dealer’s installed app locked the phone remotely. For 2 hours I stared at a dead screen. No WhatsApp. No TikTok challenges. No updates from PLU on X. No connection to the followers I had built.

Desperate, I ran to money lenders. I put my iPad as security. The loan covered 1 or 2 weeks before I was locked out again. I gave up, sold the idea, and bought a 200k Aquos phone just to stay online. Months later, the dealer was still calling me for money — even after I had lost the iPhone. By then I had almost paid the real price of the phone anyway.
Logging into that cheap Aquos felt like leaving the city and heading back to Gomba. Reality had humbled me.

It’s Not Just Me

A few days ago, my friend Jose told me he’s supposed to pay 1.2 million for a Samsung A07 that costs 400k in shops.
Same story. Different phone. This is happening in broad daylight, under the pretext of “helping the poor access technology.”

Who is Watching?

So who regulates this?
The Ministry of Trade handles consumer protection and unfair pricing. UCC regulates phones, device registration, and the apps used to lock them. But right now, both are silent. Rogue dealers are hiding in that gap, using technology to trap Ugandans in debt.

We are in a free market economy, yes. But free market does not mean license to exploit.

Ugandans Are Demanding Action

Government, through either the Ministry of Trade or UCC or both must not turn a blind eye.

We need:

1. A cap on interest for phone credit deals
2. A ban on remote locking without court order
3. A public blacklist of dealers and apps involved in predatory lending
4. Clear complaint channels so victims can report without fear

Technology should uplift Ugandans, not enslave them to debt. If nothing is done, we are raising a generation that will own gadgets but lose their financial freedom.

The whip must crack. Now.

By: Meddy Walusimbi Omuyiribi (medywalusimbi@gmail.com)