In the bustling slums of Kampala, where access to traditional banking is a distant dream for many, Freedom Development Agency (Freeda) offers a lifeline. Under the umbrella of Mercy House Ministries, Freeda provides soft loans with interest rates as low as 5%, a stark contrast to the high rates and rigid requirements of conventional banks. This microfinance model is designed to empower the underserved widows, youth, single mothers, and pastors by bridging economic and spiritual gaps.
How It Works
Freeda’s loan model is both accessible and community-driven. Individual loans, such as UGX 1,000,000, come with a monthly interest of UGX 50,000, while group loans of UGX 5,000,000 are shared among members, fostering collective responsibility with a monthly interest of UGX 250,000. This structure not only provides capital but also builds accountability and support networks.
Real Impact
The results speak for themselves. Pastor Julius used a UGX 4,000,000 loan to secure land near his church, freeing him from rent burdens and enhancing his ministry. Norman, a Missions Coordinator, invested UGX 2,000,000 in goat and pig rearing, anticipating returns that will fuel his mission work. From October 2024 to May 2025, Freeda disbursed UGX 30,698,000 across 36 loans, with a 70% collection rate, demonstrating both growth and reliability.
Why It Matters
For communities like Kawempe North, where poverty, food insecurity, and broken family structures prevail, Freeda’s approach goes beyond temporary aid. By integrating financial literacy and faith-based training, it equips individuals with the tools to create lasting change. As Freeda plans to expand across Uganda’s regions Eastern, Western, Northern, Central, and West Nile this model promises to transform countless lives.