Written By | BK Mugizi
Col. Kitandwa pose for a photo with Kyamuhunga Peoples Sacco management
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Bushenyi
Leaders and stakeholders in Bushenyi District have raised concerns over rising poverty levels, attributing the trend to weak post-COVID-19 recovery measures, low savings, and overdependence on tea farming.
The concerns were raised during the 28th Annual General Meeting of Kyamuhunga People’s SACCO, held at Kyamuhunga Catholic Parish in Kyamuhunga Town Council.
KYAPS Sacco members attend the 28th Annual General meeting
High Poverty Levels
The district chairperson-elect, Prosper Twebaze, said the district's overall poverty rate stands at 12.8%, with some sub-counties recording significantly higher figures.
According to the Bushenyi District Planner, Bamusiime Dickson, Bitooma has the highest poverty rate at 22.2%, followed by Kakanju (21.3%), Kyamuhunga (16.3%), and Ruhumuro (14.8%).
Low Savings Culture
Twebaze attributed the low savings culture to the economic effects of the COVID-19 pandemic.
“During COVID-19, there were no measures to manage running loans, and even after the pandemic, there were no recovery interventions by government or other organisations,” he said.
He added that many residents open bank accounts mainly to access loans, which undermines the sustainability of SACCOs.
Diversification
Twebaze urged residents to diversify their sources of income instead of relying solely on tea growing.
“We cannot rely on one crop. People should diversify into other income-generating activities. Coffee, for instance, has multiple harvesting seasons and can provide income at different times of the year,” he said.
Limited Access to Capital
The Kyamuhunga People’s SACCO Board Chairperson, Paul Kahiingi, described poverty eradication as a difficult task, noting that demand for financial services far exceeds available capital.
“SACCOs are not enough, and we cannot meet the demand for loans due to limited capital. When people have no income, they cannot save,” Kahiingi said.
He acknowledged the impact of government programmes such as the Parish Development Model (PDM) and Emyooga but noted that a section of the population remains inactive and dependent on others.
Despite the challenges, Kahiingi cited success stories among SACCO members, including improved housing and access to education through school fees loans.
“We have members who have improved their livelihoods, but we must work together with government to sensitise others and help them move out of poverty,” he said.
Col. Kitandwa
Women in the Non-Monetised Economy
The SACCO General Manager, John Bosco Atwijukiire, expressed concern about the large number of people, especially women, still engaged in the non-monetised economy.
“Many women are involved in domestic work that does not generate income. There is a need for all stakeholders, not just government, to bring them into the money economy,” he said.
Atwijukiire added that the SACCO has secured a grant from Financial Sector Deepening Uganda (FSDU) targeting young women, but uptake remains low.
“We are looking for young women to benefit from this funding, but the response is still low. There is a need for more sensitisation to encourage them to engage in income-generating activities,” he said.
SACCOs’ Role in Social Wellbeing
Speaking at the same function as the guest of honor, Col. Allan Kitandwa, Chairperson of the Uganda Cooperative Savings and Credit Union (UCSCU), urged SACCO leaders to prioritise the social wellbeing of their members.
He emphasised that SACCOs should grow together with their members, noting that they are not just profit-making entities but institutions meant to transform communities.
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