Nyakibale SACCO members warned over loan defaults at 20th AGM
RUKUNGIRI, March 26, 2026 – Members of Nyakibale Development SACCO have been urged to honour their credit obligations and ensure timely loan repayments to safeguard the institution’s financial stability.
The call was made on Saturday during the SACCO’s 20th Annual General Meeting [AGM] held at Riverside Hotel in Eastern Division, Rukungiri Municipality.
Board Chairperson Fortunate Akanyihayo Rukundo said the SACCO recorded strong growth in 2025, registering 454 new members, an increase of Shs 46.13 million in share capital, and a loan portfolio expansion of Shs 404.33mln.
“We registered growth across all key performance indicators, including membership, share capital, savings and loan portfolio, meeting and even surpassing our 2025 targets and revenue projections,” Rukundo said.
She added that the board strengthened governance by reviewing and developing operational policies, enabling the SACCO to run efficiently without external borrowing throughout the year.
Rukundo further noted an improvement in operational efficiency, with the cost-income ratio declining to 39 percent from 55 percent in the 2024 financial year, attributing this to strict accountability and enhanced budgetary controls by the Board of Directors [BOD] and the Supervision Committee [SUPCO].
Despite the progress, she raised concern over loan defaults, warning that they continue to affect the SACCO’s net surplus.
“We still have members who default on loans. This increases recovery costs and reduces surplus due to loan loss provisioning. Although manageable, there are periods when liquidity constraints delay service delivery,” she said.
To address the challenge, the SACCO plans to intensify member education, particularly on digital platforms, while also profiling dormant accounts and encouraging members to reactivate them.
SUPCO Chairperson Cornelius Byarugaba also reported a rise in loans in arrears and expired facilities, noting that technology would play a key role in improving recovery.
“We have introduced MSACCO to enable members transact from anywhere. As long as one has funds on their phone, loan repayments can be made conveniently, which will strengthen recovery efforts,” he said.
Byarugaba also unveiled an environmental initiative under which members will be encouraged to plant between two and 10 trees annually, with fruit tree distribution planned for the August rainy season.
General Secretary Ziine Narcisio announced the introduction of a “Women Fund” aimed at improving access to credit for women without traditional collateral.
“We are putting in place alternative mechanisms to enable women access loans without relying on assets such as land, so as to transform their households,” he said.
Members welcomed the initiative, saying it would boost small businesses and ease household financial burdens.
The Chief Guest, Methods Mureebe Muhanuka, Chief Executive Officer of the Ugandan Parliamentary SACCO, urged the leadership to benchmark against high-performing SACCOs and participate in national and international platforms.
“I encourage the board to budget for participation in such engagements to strengthen advocacy, visibility and growth of your SACCO,” he said.
He also cautioned members against electing financially inactive leaders and warned about dormant accounts, linking them to low savings levels.
Trainer Benon Musinguzi from the Uganda Cooperatives Savings and Credit Union [UCSCU] challenged members to cultivate a stronger savings culture, noting that average daily savings per member remain low despite the SACCO’s long existence.
General Manager Peterson Kazaire called on Village Saving and Loan Associations [VSLAs] to formalise their savings through the SACCO to improve security and access to credit.
Meanwhile, Leonard Okello, Chief Executive Officer of the Uhuru Institute for Social Development [TUI], warned against over-reliance on donor funding, saying it can weaken member participation and institutional sustainability.
“Cooperatives must prioritise member-driven growth and adhere to their strategic plans rather than depend on external funding,” he said, adding that strong leadership and innovation are essential for long-term success.
By the close of the AGM, delegates approved a maximum liability of Shs 1.5bln, a dividend payout of 10 percent on share capital, and a 16 percent patronage bonus for members holding five or more shares.
Background
Nyakibale Development SACCO Limited was established in 2005 under the Catholic Church to support Christians in Rukungiri Municipality to improve their livelihoods. The SACCO currently has 11,762 members, total assets of Shs 17.60bln, share capital of Shs 2.46bln, savings of Shs 8.13bln, and a loan portfolio of Shs 17.44bln. It operates branches in Nyakibale and Kasoroza, with an outreach in Kashenyi.
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