Mushanga SACCO launches digital platform for loans, embraces agency banking
According to the SACCO’s General Manager, Gorden Nankunda, the new developments are aimed at eliminating geographical barriers and bringing affordable credit to the fingertips of more than 65,000 members across Sheema district and the wider Ankole Sub-region
SHEEMA, March 4, 2026 – Mushanga SACCO has embraced agency banking and unveiled “MSACCO Loan”, a mobile platform enabling members to access loans via their phones. The innovation was launched during the SACCO’s 44th Annual General Meeting [AGM] held last Saturday.
According to the SACCO’s General Manager, Gorden Nankunda, the new developments are aimed at eliminating geographical barriers and bringing affordable credit to the fingertips of more than 65,000 members across Sheema district and the wider Ankole Sub-region.
Revolutionising rural credit
The digital products will be implemented by Future-Link Technologies Limited, a Ugandan IT firm. The company’s Chief Executive Officer, Vicent Tumwijukye, described the launch as a milestone for inclusive banking.
“Gone are the days when members had to physically come to the SACCO premises to access loans. With MSACCO, members can now apply for and receive loans directly on their mobile phones,” Tumwijukye said.
He added that the platform will significantly reduce the cost of credit, since member information is already held by the SACCO. “If you need a short-term loan, you can access it immediately without incurring transport costs or leaving your business,” he noted.
Enhancing performance and convenience
Gilvazio Bafaki, Chairman of the Board of Directors, reported that recent digital interventions have already delivered notable gains for the SACCO. Between 2024 and 2025, deposits increased from Shs 30.1 billion to Shs 36.35bln, while income rose from Shs 430.3 million to Shs 622mln.
He expressed confidence that the mobile loan innovation would expand the SACCO’s loan portfolio from the current Shs 66bln to Shs 80bln by the close of 2026.
“Twetambire” health initiative
Beyond financial services, the SACCO is also tackling members’ health challenges through the “Twetambire” cooperative health insurance scheme. In partnership with Mushanga Health Centre III, the scheme provides both inpatient and outpatient care at a quarterly premium ranging between Shs 60,000 and Shs 80,000.
“We still have members dying without knowing the cause of death. I urge you to join this scheme so that when a member passes away, there are proper medical records from the health facility,” Bafaki said.
Francis Twesigomwe, representing Mushanga Health Centre III, highlighted the benefits of the scheme. “If you join this health insurance programme, you gain access to quality healthcare. You can visit the facility at any time, see a doctor and receive treatment with peace of mind, without worrying about immediate medical costs,” he explained.
Governance and policy advocacy
The Chief Guest, Ruhama East Member of Parliament Moses Kahima Mugabe, challenged the SACCO to strengthen its risk management framework as it transitions into digital operations.
“You will need to employ a risk manager who can conduct assessments to ensure loans are recovered and defaults minimised,” Kahima advised.
Addressing the issue of bad debts, including Shs 3 billion recently written off, he urged members to diversify their income sources. “Focus on diversification. If milk prices fall, you can sell a goat or bananas,” he said.
Kahima noted that loan defaults are a nationwide challenge affecting SACCOs across the country. He called for amendments to the Cooperative Societies Act to allow defaulters’ property to be sold without lengthy court processes, in order to safeguard members’ savings.
Ronald Twinomugisha, Assistant Resident District Commissioner for Sheema district, encouraged SACCOs to consider arbitration mechanisms for debt recovery instead of pursuing costly and prolonged court proceedings.
On regulation, Dr Sylvester Ndiroramukama, Chief Executive Officer of the Uganda Cooperative Savings and Credit Union [UCSCU], appealed to government to establish a single regulator for SACCOs.
“We want all SACCOs to operate under one regulator who understands their day-to-day operations,” Ndiroramukama said, urging MP Mugabe and fellow legislators to address what he described as confusion arising from multiple regulatory bodies, which he argued has hindered the sector’s growth.
Looking ahead
The AGM concluded with members approving the distribution of Shs 3bln in dividends, with 60 per cent to be paid out in cash and 40 percent retained as share capital.
SACCO background
Established in 1969 and registered in 1981, Mushanga SACCO Ltd is headquartered at Nyamufumura Trading Centre in Sheema district. The institution operates 12 branches and seven outreach centres across Sheema, Buhweju, Bushenyi, Rubirizi, Mbarara, Isingiro and Ntungamo districts.
It currently boasts a loan portfolio of Shs 66.44bln, total savings of Shs 37.86bln, share capital of Shs 17.46bln and total assets worth Shs 84bln. The SACCO serves 65,305 members and employs 144 staff.
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