BOU licenses four more large SACCOs
Licensed SACCOs are eligible for subsidised funding through the Agricultural Credit Facility and the Small Business Fund. They were also encouraged to adopt sound environmental, social and governance practices.
The Bank of Uganda (BOU). (File)
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The Bank of Uganda (BOU) on Tuesday handed Registered Society licenses to four large savings and credit cooperatives.
The licenses issued bring the total number of SACCOs under its direct supervision to 10. The licences went to CBS PEWOSA SACCO, Mateete SACCO, Uganda National Bureau of Standards (UNBS) Staff SACCO and Kibaya Youth Development SACCO.
Speaking on behalf of the Governor at the handover at BOU, Mr David Kalyango, the executive director, Supervision and Regulation, said four joined a short list of large SACCOs already brought under the central bank.
“I congratulate the boards, management, staff, and members of these SACCOs for achieving the milestone of being licensed by the Bank of Uganda under the Microfinance Deposit-Taking Institutions Act. This legal framework facilitates the growth of SACCOs while maintaining their business model,” he said.
The EBO Co-operative Savings and Credit Society Limited, based in Bwizibwera, Mbarara District, was the first, licensed in January 2025.
Kyazanga-Kwegatta Microfinance SACCO in Lwengo and MADFA SACCO in Masindi followed later that year.
Share an Opportunity Zirobwe SACCO in Luwero, Kihondo Tukwatanize SACCO in Kabarole, and Rubabo Peoples SACCO were licensed in subsequent rounds.
CBS PEWOSA, registered in March 2015 and linked to the Buganda Kingdom, operates from Bulange, Mengo. Mateete, registered in 2002, serves members from Sembabule District through several branches, with a strong agricultural lending book.
The UNBS society is a staff cooperative. All four now fall under proportional regulation reserved for registered societies whose voluntary savings exceed sh1.5b and whose institutional capital exceeds sh500m. Bank of Uganda has previously said more than 90 societies meet that threshold.
“Trust is the foundation of sustainable financial services, and it is built through competent leadership, sound controls, accurate records, ethical conduct and timely disclosures,” he said.
Licensed SACCOs are eligible for subsidised funding through the Agricultural Credit Facility and the Small Business Fund. They were also encouraged to adopt sound environmental, social and governance practices.
Lawrence Busuulwa, general manager at Matete SACCO, said: “The licensing process has not been easy; we passed the minimum benchmark that was set. Many SACCOS are afraid to go through that process. We think that with this license, the SACCO will continue to thrive in the years to come.”
Rashid Musisi from CBS PEWOSA said receiving a license makes a great milestone for the members of the SACCO.
Edward Muhumuza, chairperson, Kibaya Youth Development SACCO, said: “We are happy to achieve what many many SACCOs are yet to achieve. We think being regulated is a wise decision that we made. When the government said we needed a license, we had to comply. We will ensure compliance to keep this license.”