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Members attending the 26th Annual General Meeting of Kyamuhunga People's SACCO (KYAPS)
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By Mwijukuru wa Kibondo
Bushenyi
SACCOs managers in Uganda are calling for a single regulator to oversee their operations, citing the challenges posed by being regulated by multiple bodies. Currently, SACCOs are overseen by the Uganda Microfinance Regulatory Authority (UMRA), the Bank of Uganda, and the Registrar of Cooperatives at the Ministry of Trade, Industry, and Cooperatives (MTIC).
Speaking during the 26th Annual General Meeting of Kyamuhunga People's SACCO (KYAPS), held at Kyamuhunga Catholic Parish Hall in Kyamuhunga Town Council over the weekend, Paul Kahigi, the SACCO chairperson, emphasized the need for a single regulatory body. He stated that the presence of multiple regulators has led to confusion, increased operational costs, and other challenges.
"We recently had the opportunity to visit Kenya, where we discovered that their Savings and Credit Cooperatives (SACCOs) are regulated by a single authority. This streamlined approach has enabled their SACCOs to grow exponentially, to the point where they can even lend money to commercial banks," Kahigi revealed.
"If Uganda were to adopt a similar model with a single regulatory body, it would have a profoundly positive impact on our industry. This would not only enhance operational efficiency but also foster growth, ultimately contributing to the country’s economic development," he added.
Robert Mpakiibi, Assistant Commissioner and Registrar of Cooperatives, who presided over the function, emphasized the vital role that established SACCOs play in supporting the growth of Parish Development Model (PDM) SACCOs. He encouraged well-established SACCOs to mentor and guide PDM SACCOs, helping them develop strong leadership and management capacities.
Robert Mpakiibi
"I encourage established SACCOs to share their expertise and experience with PDM SACCOs, helping them navigate challenges and achieve their goals. This collaborative approach will foster a stronger, more resilient cooperative sector, ultimately supporting Uganda’s economic development," Mpakiibi stated.
Atwijukire Johnbosco, the General Manager of Kyamuhunga People's SACCO, urged the government to intervene in the tea sector to address the issue of low prices, which have negatively impacted farmers' incomes in the region.
Torch Media Africa
