BOU issues first SACCO license

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The Bank of Uganda issued the first-ever large licensed registered society’s permit to EBO Cooperative Savings and Credit Society Limited which has operated for more than 30 years.

Speaking at the handover at the BOU headquarters in Kampala, Deputy Governor Prof. Augustus Nuwagaba urged directors to comply with regulatory requirements to ensure effective risk management and operational stability.

EBO SACCO’s financial statements show its core capital grew to nearly 16.5b as of December 2024. The licensing follows months of legal disputes between EBO SACCO and the Uganda Cooperatives and Savings and Credit Union, amid claims of contradictions in laws governing Tier 4 financial institutions and cooperative societies.

“We are delighted to be the first SACCO to be licensed by the BOU. This opens new possibilities for the growth our societies,” said Rosette Kashaija, chairperson at EBO.

The central bank will be regulating at least 42 large SACCOs with savings exceeding about sh1.5b.

The regulations of SACCOs by the central bank follow the amendments to the Microfinance Deposit Taking Institutions 2022.