Butuuro SACCO registers strong performance in 2024

BUSHENYI, April 1, 2025 – Butuuro Financial Services Limited [Butuuro SACCO], located in Nyakabirizi Town Council, Bushenyi District, experienced remarkable growth in 2024 despite internal challenges. This was announced during the SACCO’s 17th Annual General Meeting [AGM] held recently.

According to Simple Wagaba, Chairperson of the Supervisory Committee [SUPCO], Butuuro SACCO achieved a net profit of Shs 1.72 billion, with membership rising to 18,756 and share capital reaching Shs 4 billion in 2024.

“We surpassed our 2024 target of Shs 1.5 billion by achieving a net profit of Shs 1.72 billion. Our membership grew by 19.2 percent, contributing to an increase in share capital from Shs 3 billion on December 31, 2023, to Shs 4 billion on December 31, 2024, reflecting a 35 percent growth,” Wagaba explained.

“There are many SACCOs in the region, but we continue to attract more members. We recruited 3,027 new members last year, thanks to the trust, integrity, and transparency within our SACCO. When membership increases, share capital naturally rises. For instance, our share capital for 2024 was Shs 3 billion, but by the end of 2024, it had grown to Shs 4 billion,” he added.

New board elected

In response to a series of internal leadership disputes, members at a recent Special General Meeting [SGM] elected a new board, which successfully organised a peaceful AGM. The new board members include: Benson Tumuhimbise Kamugisha [Chairman]; Nelson Atwiine [Vice Chairman]; and Henry Bamwine [Treasurer]; Carolyn Namara [Secretary].

Other board members are; Imeldah Twijukye [Member]; Levi Ainomujuni [Member]; Nicholas Ajuna [Member]; and Sande Margaret [Acting General Manager, also the SACCO’s Human Resource Officer].

Wagaba urged the new board and management to refrain from nepotism and favouritism in staff recruitment.

“In regard to staffing, I’ve discovered that there is some compromise and conspiracy going on. Institutions that perform well recruit based on merit, considering academic qualifications and relevant experience. This must be our guiding principle when recruiting new staff,” he stated.

He also urged the board and management to introduce a succession plan policy to ensure smooth leadership transitions within the SACCO.

“As leaders, we must understand that there will come a time when we retire or leave. It is our responsibility to mentor and inspire others to step into leadership roles. This has been lacking at Butuuro SACCO, which has contributed to a leadership vacuum,” Wagaba said.

Challenges with loan defaults

Benson Tumuhimbise, the current board chairman, expressed concern over an increase in loan defaults among some members of the SACCO.

“We experienced a higher-than-expected loan write-off of Shs 308 million in 2024, against a target of Shs 195 million. This has had a significant impact on our members’ dividends. We also have dormant accounts, and I urge our members to actively engage with their accounts,” Tumuhimbise said.

He also proposed a review of the SACCO’s policies to improve its performance.

“We need to approve a review of our policies, including human resources, credit, board, patron, founders, audit, and supervision policies, among others. This will allow the formulation of new policies, such as an elders’ policy, marketing and advertising policy, and amendments to the SACCO bylaws,” he suggested.

Training members on rights and responsibilities

Aggrey Atekyeka, Principal Commercial Officer for Bushenyi-Ishaka Municipality, urged the board and management to educate members on their rights and roles within the SACCO.

“Before AGMs, it is crucial to educate members, rather than incite violence. Let’s focus on enlightening them,” Atekyeka said.

Former leader challenges special general meeting that ousted him

In an interview with this reporter, former board Chairman Benson Barigye confirmed that he had taken legal action over the SGM that resulted in the election of the new board.

“There is already a court case challenging the SGM that elected a new board. I’m fine with it; let them continue with their actions. The unanswered questions will soon be addressed,” Barigye said.

Background

Butuuro SACCO began operations in 2007 with an initial capital of just Shs 1 million, aiming to provide better financial and social solutions to the local community. The SACCO currently operates five branches and has recently completed the construction of a new head office in Nyakabirizi Division, Bushenyi-Ishaka Municipality, at a cost of Shs 310 million.

Butuuro SACCO has: Share capital of Shs 4bln; loan portfolio of Shs 16.83bln; total assets of Shs 20.44bln; total dividends of Shs 1.72 billion; membership of 18,756; and total savings of Shs 5.57bln.

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