Uganda: Saccos in Uganda Get New Regulation

Aug 2016
Uganda, August, 04 2016 - Mayuge — Government is set to introduce a new regulation to protect finances of members in Savings and credit cooperative organisations (Saccos).

This was revealed on Monday by the regional manager of the Uganda Cooperative Savings and Credit Union, Mr Pascal Bwambale, while speaking in Malongo Sub-county, Mayuge District, during the commissioning of an office block for Bugadde Sacco. Mr Bwambale said swindling of savings and share capital, and failure to recover loans has led to crumbling and collapse of many Saccos.

Government funding

In Busoga region, over Shs1b in government grants, members' share capital and savings had by December 2013 been lost in the period between 2008 and 2013, following the winding up of over 150 Saccos, a scenario which the new regulation aims at addressing to avert similar occurances.

"The purpose of this regulation is to protect Sacco members by providing security for their money," Mr Bwambale said.

The new regulations are provided for under the Tier 4 Regulatory Authority, which was first established in 2003 with a mandate to regulate and govern the registration of Saccos and ensure they carry out annual audits of their accounts.

The regulation also aims at ensuring that micro-finance institutions spread out to the poor and rural areas of the country.

According to the Mayuge District commercial officer, Mr Benon Waiswa, the district has 30 registered Saccos, out of which 17 are active and 10 of them have received a total of Shs667m from the Micro Finance Support Centre.

Source : AllAfrica

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