An employee of a money lending business in Kampala has been confirmed dead after beng shot by a police officer on Friday.

The incident happened at around 1pm when a police officer identified as Ivan Wabwire shot dead one of the employees of the money lending business located on Raja Chambers along Parliamentary Avenue.

"He had taken a loan and had issued with servicing it. Today he came and a misunderstanding developed between him and the deceased. The police officer shot dead the moneylender," a source told the Nile Post.

Another eyewitness said he heard three bullets being fired at the scene only to see a police officer leaving shortly.

"He later jumped on a boda and left,"he said.

Police have cordoned off the but are yet to issue a statement on the incident.