Bugadde SACCOS’ rise from sh900,000 to sh41b

When Robert Mugabi, a teacher, started the Village Savings & Loan Association (VSLA) with 32 members and savings of sh900,000 in 2004, many doubted that he would eventually become the CEO of the leading member-owned SACCOS in the eastern region.

The VSLA took significant strides and was later registered as Bugadde SACCOS. Today, it commands a total fortune of sh41b in savings, members’ shares, and loan capital.

With its headquarters housed in a two-storey building that dwarfs all other structures in Bugadde township, Mayuge district, Bugadde SACCOS has expanded to establish 10 branches across Busoga region and Buvuma district. The SACCOS has supported thousands in transitioning from poverty to the money economy by providing loans with a low interest rate of 3% per month.

According to Mugabi, the CEO and chairperson of the board, the SACCOS total value stands at sh41b, comprised of sh12b in members’ savings, sh8b in shares, and a loan portfolio of sh21b — and it is still growing.

The branches include Nango, Bwondha landing site in Mayuge district, Iganga, Musita, and Nakalama towns in Iganga district. Other locations are Idudi in Bugweri district, Nakabugu in Luuka district, Butaleja town, Buvuma Islands in Buvuma district, and Kamuli in Kamuli district.

Mugabi: the visionary behind Bugadde SACCOS

By 9:00am, Mugabi is already at the headquarters, interacting with clients, supervising staff, and meeting with both small and large savers. With the motto “Together we can,” the SACCOS offers financial services that enable clients — from poor peasants to large business entities — to access loans with low interest.

The SACCOS began with sh900,000 in savings from 32 members, including peasants, fishermen, and a few civil servants in 2004. Today, it employs 150 staff across 10 branches and has 57,235 members (as of December 2024) and counting.

Robert Mugabi, the Bubadde founder and CEO.

The services offered include commercial loans, village banking, social funds, insurance, fixed deposits, voluntary savings, special loans, smart plan savings, and microfinance services. It also provides capacity building, group loans, individual loans, student loans, agricultural loans, business loans, and loans for machinery, including Sino and Fuso trucks, farm tractors, and motorbikes (bodabodas).

According to Rachel Basiima, the SACCOS business manager, individuals can borrow up to sh200m. Annual dividends, in the form of Christmas packages (cash), are distributed to members at the end of each year, courtesy of the interest collected from share capital.

Birth of the concept

Mugabi quit teaching after being frustrated with the meagre salaries, especially given the many financial challenges he faced. This frustration inspired him to initiate a VSLA by mobilising friends to pool money and offer loans with low interest.

Along the way, Mugabi envisioned that the initiative would eventually evolve into a money-lending institution to benefit both members and the wider community.

He noticed that while Mayuge was a hub of brisk business, particularly with many landing sites, there was no trusted bank for the business community to store their money. The business community — especially fish traders and produce buyers — was at constant risk of being robbed while transporting cash to Iganga town.

Getting started

In 2004, a total of 32 members pooled sh900,000 as seed capital to start the VSLA, which soon became a revolving fund. The savings and loan portfolio grew to sh10m before it was registered as a savings entity and later as Bugadde SACCOS in 2015.

Today, Bugadde SACCOS offers agricultural loans, as well as machinery purchases like tractors for serious farmers and Sino trucks for contractors and transport dealers. Parents who are SACCOS members are also encouraged to open junior savings accounts for their children.

Bugadde SACCOS headquarters in Mayuge district.

Other community initiatives include the distribution of tree seedlings to promote environmental conservation and free maize/ bean seeds for individuals and farmers’ groups. At the end of each year, members receive Christmas packages (dividends) ranging from sh150,000 to over sh1m, thanks to the interest accrued from shares.

“The dividend depends on the shares you have with us. The dividends come from interest charged on loans members acquire,” Josephine Mutesi, the general manager, said.

Bugadde SACCOS also conducts capacity-building outreaches and workshops aimed at fostering mindset change, financial discipline, and household income generation.

The SACCOS offers social corporate responsibility initiatives, including secondary and higher education bursaries for children of active, committed, and honest members. In December 2024, the SACCOS facilitated the Bugadde Marathon to raise funds for unemployed youth, providing loans to reduce social and economic insecurity.

Mutesi explained that part of the resources mobilised from the marathon went to support child mothers, single mothers, and rape victims. Another ongoing project, “Bugadde Eyake,” provides solar-powered lighting to growing townships like Bugadde, Kityerera, and Bwondha landing sites. The goal is to eliminate darkness, reduce insecurity, and allow businesspeople to work longer hours and increase their income.

What makes Bugadde tick?

The services

According to Mugabi, the institution operates with efficiency, honesty, and professionalism. Unlike other institutions that delay loan processing, Bugadde SACCOS provides quick services, enabling clients to address urgent needs such as school fees, business expansions, and medical treatment.

The SACCOS offers interest rates as low as 3-4% per month for small and large loans, respectively. The hospitality of the coordinators, along with regular community training on mindset change, saving culture, and honesty, are key practices that set the SACCOS apart.

Members waiting to be attended to at Bugadde SACCOS.

Through its social corporate responsibility initiatives, Bugadde SACCOS has also constructed the Bukatuube Police Station and supports a cassava multiplication project to combat hunger and poverty in Namutumba district.

Challenges

Mugabi explains that the Uganda People’s Defence Force swoops on illegal fishing activities have slowed the SACCOS progress, as fishermen’s nets were destroyed and access to Lake Victoria restricted.

Other challenges include climate change, which brought floods that overwhelmed the shoreline of Lake Victoria, swamps, and homes, forcing many families to relocate. The irregular weather patterns, such as prolonged droughts, have also negatively impacted farmers’ harvests.

Vision and mission

Bugadde SACCOS was established with the vision of building a sustainable, community based financial institution that is owned, controlled, and serves prosperous members in eastern Uganda.

Its mission is to provide quality, timely, and efficient financial services to the economically active poor in society, with the goal of increasing household income and enabling members to transition from poverty to a money economy.

Through this mission, the SACCOS utilised its available resources to grow by offering loans with low interest rates. As the client base expanded, the board decided to set up additional branches to better serve the growing membership.

To extend services further, the SACCOS deployed parish coordinators to mobilise new members, leading to the creation of additional branches in the districts of Namutumba, Butaleja, and Luuka.

Plans

Bugadde SACCOS aims to continue offering excellent services and grow into the leading member-owned, community-based SACCOS in Uganda. “We plan to have a positive impact on communities, helping them migrate from abject poverty to the money economy. Many people have business ideas but lack capital, which is why we provide them with loans,” Mugabi stated. The SACCOS projects aim to have over 100,000 clients in the coming years and to increase its total fortune to sh100b. If necessary, more branches will be opened in towns such as Mbale, Jinja, Tororo, and Busia.

Achievements

Starting with just sh900,000 in savings, Bugadde SACCOS now manages a fortune of sh41b (as of July 2024) and boasts a membership of 57,235 and growing.

The SACCOS has also created over 150 direct jobs, employing accountants, auditors, IT specialists, financial literacy trainers, social workers, and bankers.

The Microfinance Support Centre (MSC) has recognised Bugadde SACCOS for its positive impact on people’s lives, particularly through its soft-interest loans and relaxed collateral requirements. The MSC also acknowledges it as the leading member-owned SACCOS in Busoga and the Eastern region.

Some of the SACCOS major achievements include providing loans of sh20m to sh200m for significant investments, purchasing farm machinery like tractors, solar driers, and commercial trucks, as well as managing funds for over 100 Village Savings and Loan Associations and empowering them with loans to grow.

Having started with manual banking, Bugadde SACCOS has fully digitalised its headquarters and branches, implementing auto and agent banking systems. It is also a hub for other SACCOS and money-lending institutions seeking training in financial literacy, banking, and entrepreneurship development.