Rubindi Farmers SACCO assets surge to Shs 7.87bln as members urged to drive growth through savings
MBARARA, April 8, 2026 — Members of Rubindi Farmers Co-operative Savings and Credit Society Limited [SACCO] have been urged to deepen their savings and increase share capital to sustain the institution’s rapid growth and reduce reliance on costly external borrowing.
The call was made by the newly elected Chairperson, Robert Baguma Katembeko, during the SACCO’s 15th Annual General Meeting [AGM] held recently at St Andrew’s Rubindi Secondary School.
Baguma, who previously served as Vice Chairperson, was elected unopposed to replace Rev. Fr. Dr. Godwin Muhangi Tindyebwa, who stepped down following a pastoral assignment in the United States. Jenifer Nyamwija was also elected Secretary, replacing Florence Kirabo, completing the new board.
Strong growth and bold ambitions
In his maiden address, Baguma thanked delegates for their confidence and reported a standout financial year, with total assets rising by 47.3 per cent to Shs 7.87 billion, up from Shs 5.30 billion in 2024.
“Our SACCO has made significant progress over the past year, with strong performance across all key indicators,” he said. “I urge members to increase their savings and share capital so that we can gradually reduce dependence on external borrowing, which comes at a high cost.”
He noted improvements across savings, share capital, cash balances and membership, expressing confidence that the upward trajectory would continue.
Baguma also highlighted strategic investments, including the purchase of land along the Mbarara–Ibanda highway for future development, and announced plans for “cash prize campaigns” aimed at mobilising additional member equity.
“Share capital is the backbone of our growth because it carries no interest cost. Unlike bank loans, it is members’ own money, which strengthens the SACCO and boosts our surplus,” he explained.
Concern over borrowing and defaults
Treasurer Paschal Nyabuntu underscored the cost implications of external financing, noting that although the loan portfolio stands at Shs 5.83 billion, share capital remains relatively low at Shs 1.20 billion.
“When we borrow from banks at around 15 per cent and lend to members at about 25 per cent, the margin left for the SACCO is limited,” Nyabuntu said. “If we rely more on members’ funds, the full return stays within the SACCO, strengthening our surplus and dividends.”
Both leaders raised concern over loan defaults and multiple borrowing, which led to provisions amounting to Shs 85 million and dented the SACCO’s surplus.
“We are seeing cases where members borrow from multiple SACCOs and institutions, then fail to repay,” Baguma said. “This habit must stop. Persistent defaulting puts members’ savings at risk and could ultimately undermine the SACCO.”
Members testify to impact
Despite the challenges, members highlighted the SACCO’s transformative impact.
Delegate Wycliffe Tumwesigye credited the institution with supporting his education and investments.
“Through Rubindi Farmers SACCO, I was able to complete my studies and later acquire land to expand my farming activities,” he said. “Access to affordable credit enables people to invest, grow their businesses and improve their livelihoods.”
Call for financial discipline
Mbarara District Commercial Officer Adams Bwaisho Nkwatsiibwe commended the SACCO’s progress but stressed the need for stronger financial discipline among members.
“When a SACCO collapses, it is the members who are responsible,” he said. “Your share capital is still low compared to the size of your loan portfolio. If you want this institution to grow sustainably, you must increase your shares.”
He also warned against over-indebtedness, linking excessive borrowing to financial stress and health challenges.
“Borrow within your means. Taking on multiple loans in a short period creates unnecessary pressure. Financial discipline is essential for both personal wellbeing and the stability of the SACCO,” he added.
Expansion and digital services
General Manager Moses Asiimwe outlined plans to expand services across the Western Region, with new outreach centres planned in Kagongo and Kaberebere in Isingiro District.
The SACCO currently operates branches in Rubindi, Igorora (Ibanda), Akashanda (Bukiro) and Mbarara City.
“We continue to extend affordable financial services, including loans for education, agriculture, business and home improvement,” Asiimwe said. “Members can also access mobile banking services, enabling them to deposit and withdraw funds using their phones without visiting a branch.”
He added that loan processing takes up to five days for eligible applicants.
“As our motto says, ‘today for tomorrow’, saving consistently is key to securing your future. We encourage members to open accounts, save regularly and plan for long-term financial stability,” he said.
Key resolutions
During the AGM, members approved several measures for the 2026 financial year, including raising the maximum liability threshold to Shs 2 billion to meet growing loan demand and approving Shs 81.78 million in dividends.
Background
Founded in 2011, Rubindi Farmers SACCO has grown to 8,613 members. It now holds total assets of Shs 7.87 billion, savings of Shs 4.48 billion [58 per cent], share capital of Shs 1.20 billion [25 per cent], and a loan portfolio of Shs 5.83 billion. The SACCO reported a disposable surplus of Shs 211.34 million.
“We have recorded growth across membership, savings, shares and the loan portfolio,” Asiimwe said. “Net assets increased from Shs 5.35 billion to Shs 7.87 billion, representing a 47.3 per cent rise.”
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