Kaserem SACCO collapses after years of poor leadership

KAPCHORWA, January 27, 2026 — Kaserem Savings and Credit Cooperative Organisation [SACCO], once one of the most powerful and trusted community financial institutions in Kapchorwa district, has collapsed after years of poor leadership, lack of accountability, and failure to hold Annual General Meetings [AGMs], according to members and former leaders.

Founded in 2004 in Kapchorwa district, Kaserem SACCO began with a strong membership of about 400 people, mainly farmers and small-scale traders from the Kaserem area and surrounding communities. The cooperative was established to promote savings, provide affordable loans, support agriculture, and improve household incomes. In its early years, it was regarded as a model SACCO and enjoyed widespread community support.

The SACCO’s growth was boosted by support from political leaders and other stakeholders. One of its biggest achievements was receiving a tractor donation from the then Woman Member of Parliament for Kapchorwa district, Rukia Chikamondo. The tractor was intended to help members with land preparation, reduce farming costs, and increase agricultural production.

At the time, the donation raised hopes among members and strengthened confidence in the SACCO. Many farmers benefited from mechanised farming, and the cooperative was seen as a pillar of economic development in the area.

However, despite this strong start, Kaserem SACCO gradually declined. According to members, the downfall began when the leadership failed to adhere to cooperative principles, particularly transparency, accountability, and regular engagement with members.

Speaking to this reporter, Khan Habib, a former SACCO leader, said the failure to hold AGMs for several years was one of the major causes of the collapse.

“AGMs are very important in any SACCO. They allow members to receive financial reports, question leaders, elect new officials, and plan for the future. At Kaserem SACCO, AGMs stopped, and this created serious problems,” Habib said.

He explained that without AGMs, members lost trust in the leadership because they could not access information about their savings, loans, or SACCO assets.

“Members did not know how much money the SACCO had, how loans were performing, or how assets such as the tractor were being managed. This lack of information led to suspicion and conflict,” he added.

Habib further noted that some leaders overstayed in office without elections, which went against cooperative laws. “When leaders stay too long without being voted in, members feel excluded. This discouraged people from saving and repaying loans,” he said.

Chebet Abubakar, another former leader of Kaserem SACCO, described the collapse as unfortunate and avoidable.

“This SACCO had everything needed to succeed, members’ savings, assets, and community trust. But poor leadership decisions destroyed what we had built over the years,” Chebet said.

He explained that many members stopped attending meetings and contributing savings after realising that their views were no longer valued. “When leaders stop consulting members, people lose interest, savings decline, loan recovery becomes poor, and the SACCO cannot sustain its operations,” he said.

Chebet also pointed out that the tractor donation, which was meant to strengthen the SACCO, later became a source of conflict.

“There was no clear system for managing the tractor. Issues of maintenance, fuel, usage fees, and accountability caused disagreements among leaders and members,” he said.

According to Chebet, poor management of SACCO assets weakened member confidence and damaged the cooperative’s image in the community.

Several members interviewed said they were never informed about the SACCO’s financial status. Some claimed they had savings but did not know whether their money was still available, while others said they had not been invited to meetings for years.

“We only heard rumours. No meetings, no reports, nothing. That is when many of us gave up,” one member said.

Others blamed poor communication between leaders and members, saying important decisions were made without consultation.

“A SACCO belongs to the members, but we were treated like outsiders,” another member said.

Cooperative experts say the collapse of Kaserem SACCO highlights the dangers of ignoring cooperative principles. They note that regular AGMs, audited accounts, leadership elections, and active member participation are essential for the survival of any SACCO.

Local leaders in Kapchorwa district have expressed concern over the increasing collapse of community SACCOs, noting that such institutions play a critical role in fighting poverty, supporting farmers, and promoting financial inclusion.

They urged leaders of existing SACCOs to learn from the mistakes of Kaserem SACCO by embracing transparency, accountability, and good governance. Members were also encouraged to actively participate and demand accountability from their leaders.

Although Kaserem SACCO is no longer operational, former members say its story should serve as a lesson for other cooperatives in the region. Some believe that with proper leadership, strong structures, and regular AGMs, the cooperative movement can still thrive in Kapchorwa District.

As government and development partners continue to promote SACCOs as engines of economic growth, the rise and fall of Kaserem SACCO stands as a clear reminder that leadership matters. Without accountability, transparency, and member involvement, even the strongest SACCO can collapse.

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