Written By | BK Mugizi
Reports presented at the meeting indicate that during the 2025 financial year, board members spent more than Sh145 million under questionable circumstances, sparking outrage among members
Search
SHEEMA
The Sheema District Commercial Officer, Asasira Winston Kafurembe, has dismissed the Kitagata Tutagate Savings and Credit Cooperative Organisation (SACCO) Board Chairperson, Tumwebaze Kenneth, over the alleged misuse of SACCO funds.
The decision was announced during the SACCO's Annual General Meeting held at Atusiimwe Hall in Kitagata Town Council. Kafurembe said the move followed concerns raised by members over financial mismanagement by the board, which is said to have put the institution at risk.
Dismissed Chairperson, Tumwebaze Kenneth
Reports presented at the meeting indicate that during the 2025 financial year, board members spent more than Sh145 million under questionable circumstances, sparking outrage among members.
An investigation into the alleged misuse of funds has since been launched, with further action expected against other board members found culpable.
Members also questioned the SACCO's financial performance, wondering how an institution with a loan portfolio exceeding Sh3 billion registered only Sh39 million in profits for the entire year.
Atubeho Paul, one of the SACCO members, said they had invested in the institution with hopes of earning dividends, but none had been declared due to the ongoing crisis.
“We started this SACCO to earn profits, but we have not received any dividends because of the current challenges,” he said.
Atubeho further alleged that the board was incurring excessive operational costs, claiming that the chairperson would reportedly sign for allowances even when he had not carried out official SACCO duties.
“We have information that whenever the chairperson is in town, even if he has not come for SACCO work, he signs for allowances and leaves. This is putting our SACCO on the verge of collapse,” he added.
Members raise their hands to vote out board members
Concerns were also raised over declining membership growth. Despite having over 1,000 members, the SACCO reportedly recruited only 84 new members across its three branches in 2025.
According to CPA Obed Mpwerirwe of Obed Associates, the SACCO's external auditor, operational expenditure sharply increased, raising financial risk concerns. Mpwerirwe noted that cash used in operations rose from about Sh109.9 million in 2024 to over Sh364.7 million in 2025.
He added that total cash outflows related to operational activities exceeded Sh432 million in 2025, describing the trend as abnormal for a growing SACCO and warning that it could undermine its financial stability if not addressed.
Following the developments, members voted out several board members, including vice chairperson Mugarura Elias, secretary Atwine Alfred, and committee members Kasingye Innocent, Kansiime Joy, Alice Kiiza Muto, and Bamukunda Margaret.
Members also removed the supervisory board led by Tuhirirwe Hellen Ruyooka, alongside Ngambeki Nicholus and Mbebembire Innocent.
Nkakihebwa Florence was subsequently elected as the new board chairperson.
Speaking after his dismissal, Tumwebaze said he was willing to support the new leadership for the good of the SACCO.
“I am willing to work with the new board to ensure the SACCO recovers and continues to serve its members,” he said.
Torch Media Africa
