Kampala Emyooga SACCOs to receive additional funding from MSC

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Groups under the Emyooga Savings and Credit Cooperative Organizations (SACCOs) in the Kampala region are set to receive additional funding from the Microfinance Support Center (MSC).

As part of the government's ongoing initiative to boost small-scale enterprises, this extra financial support is intended to enhance the sustainability of SACCOs and encourage responsible financial management among beneficiaries.

Speaking at various capacity-building workshops organized by MSC in Kawempe, Rubaga, Kampala Central, and Makindye Sabagabo last week, the Minister of State for Microfinance and Small Enterprises, Haruna Kasolo Kyeyune, assured beneficiaries that organized SACCO groups would receive an additional sh20m. Kasolo added, that a new Boda Boda financing scheme worth sh20m will be introduced, supplementing the initial sh30m seed capital previously provided to each SACCO.

“In Kampala, some people misused the seed capital. Anyone who took the money and failed to return it to the SACCO will be prosecuted. The President has directed me to ensure more funds are added to your Emyooga SACCOs. We want everyone to engage in income-generating activities,” Kasolo stated while addressing beneficiaries in Bwaise, Kawempe Division.

Haruna Kasolo, Minister of State for Microfinance and Small Enterprises, speaking to groups of SACCOS in Rubaga Division last Friday. (Courtesy photos)

Promoting financial discipline

Kasolo emphasized the need for financial discipline among SACCO members, particularly in Rubaga Division, and announced that the government had decided to increase funding to allow more members to access financial support.

To enhance financial inclusion, the minister revealed plans for two new financial programs: boda boda loans and market loans. Under the boda boda loan initiative, Emyooga SACCO groups dedicated to the boda boda business will continue operating, but with an added advantage—MSC will procure motorcycles for members through a structured loan scheme.

These motorcycles, valued at up to sh7m each, will be made available on a hire-purchase basis, with MSC assisting riders in acquiring permits and securing insurance coverage.

Another key initiative, the market loan program, aims to address financial exploitation in local markets. Kasolo noted that research indicated a significant presence of moneylenders operating within markets, often imposing high-interest rates on traders. To counter this, he instructed MSC to establish offices in all major markets across Kampala, ensuring that vendors have access to affordable financial services.

“The discipline I expect is for traders to save every day. MSC will now have a presence in all markets to According to William Kirunda, the MSC Kampala Zonal Manager, Kampala-based SACCOs have collectively received sh16.8b in funding. However, not all SACCOs have met the required financial and operational standards to qualify for additional capital.

Kirunda reported that Nakawa Division alone has received sh1.7b out of the sh4.8b earmarked for the area. Out of the 60 registered Emyooga SACCOs in Nakawa, 58 have already received an initial sh30m in seed capital. Additionally, nine of these SACCOs have been granted an extra sh20m, bringing the total amount disbursed to sh1.74b, with another sh180m allocated for further disbursement.

At present, only two SACCOs in Nakawa—Kyanja Boda Boda SACCO and Bugolobi Women Entrepreneurs SACCO—are yet to receive funding. Kirunda assured members that once these groups meet the necessary operational requirements, they will also receive financial support.

SACCO challenges

The Emyooga program structures SACCOs at different levels, including parish-based organizations, workplace clusters, and specific trade groups. In Kampala, SACCOs are primarily organized by parish, workplace category, and operational routes.

According to the Kawempe Division Town Clerk, the division initially registered 102 SACCOs, but only 49 remain active. Of these, 21 have demonstrated strong performance, receiving approximately sh220m in seed capital. However, 11 SACCOs have been declared inactive or untraceable, while another 11 have been identified as eligible for additional funding.

Hajji Abdul Bisaso, the Deputy National Coordinator for Emyooga, acknowledged that misuse of funds remains a major challenge in the program.

“Accessing money is not the biggest issue; the real challenge is how to use it wisely. Many people received Emyooga funds but failed to utilize them effectively. The biggest problem we face is that our people lack a saving culture,” Bisaso remarked.

According to MSC, Emyooga is part of the government’s broader strategy to transition 68% of Ugandan households from subsistence-based livelihoods to market-oriented production.

By strengthening SACCOs and providing targeted financial support, the initiative seeks to empower communities, foster entrepreneurship, and reduce dependency on handouts.

With the additional funding from MSC and the introduction of new loan schemes, the government aims to ensure that beneficiaries not only access financial resources but also develop the discipline and skills necessary for sustainable economic growth. The emphasis on accountability and structured financial management is expected to enhance the overall impact of the Emyooga program in Kampala and beyond.