Stanbic cuts lending rate for agricultural cooperatives to 10 percent

KAMPALA, July 2, 2026 — Stanbic Bank Uganda Ltd has reduced its lending rate for all agricultural cooperatives to 10 percent in a bid to expand financial inclusion, particularly among women, young people and smallholder farmers.

Speaking at the Annual General Meeting [AGM] of the Association of Microfinance Institutions of Uganda [AMFIU] in Kampala recently, the bank’s Head of the Economic Enterprise Restart Fund, Stephen Segujja, said the decision was driven by the need to support farmers with affordable financing that enables them to increase productivity.

“Financial inclusion is not simply about opening accounts or providing loans; it is about creating opportunities. It is about enabling a farmer to increase productivity, a woman entrepreneur to expand her business, a young person to pursue their ambitions, and families to build resilience and prosperity,” he said.

Segujja said Stanbic Bank’s partnership with AMFIU is founded on the shared objective of building an inclusive financial system that leaves no Ugandan behind while enabling members of the association to increase production, access affordable finance and improve their livelihoods.

“We understand that cooperatives need affordable capital to serve their members effectively. That is why we have reduced our lending rate for agriculture-based cooperatives to 10 per cent per annum. We believe this is the lowest rate on the market. We do not only lend to cooperatives, but also to microfinance institutions,” Segujja said.

He added that the bank’s commitment to women, youth and farmers is anchored in its Women, Youth and Farmers (WYF) agenda, backed by a Shs1 trillion investment pledge.

Under the initiative, Stanbic provides tailored financial solutions, capacity building and strategic partnerships aimed at increasing agricultural productivity, raising household incomes and formalising businesses.

Since 2021, the bank has extended more than Shs362 billion through cooperatives, Savings and Credit Cooperative Organisations [SACCOs] and Village Savings and Loan Associations [VSLAs], reaching nearly four million people, many of them smallholder farmers. Of these, about 780,000 members have accessed credit.

Speaking at the same event, the Commissioner for the Financial Services Department at the Ministry of Finance, Planning and Economic Development, Moses Ogwapus, commended AMFIU for its continued leadership in strengthening Uganda’s microfinance sector and advancing financial inclusion.

“Your work has enabled millions of Ugandans, particularly women, farmers and entrepreneurs, to access opportunities that were once beyond their reach,” Ogwapus said.

Outgoing AMFIU Board President James Onyutta praised the association and the wider microfinance sector for their contribution to expanding financial inclusion, supporting enterprise development and improving livelihoods across Uganda.

“Despite the evolving economic environment, our member institutions continue to demonstrate remarkable resilience and commitment to serving millions of Ugandans, particularly low-income households and vulnerable groups that might otherwise be excluded from the formal financial sector,” he said.

Onyutta noted that digitalisation is becoming increasingly important in the financial sector, prompting the association to adopt digital solutions that enhance efficiency, transparency and customer experience.

Working with partners such as aBi Finance to provide grants, technical support and supervisory guidance, he said the association would continue strengthening its services and intensify efforts to achieve full financial inclusion.

AMFIU currently comprises at least 204 member institutions, including SACCOs, non-deposit-taking microfinance institutions [MFIs], microfinance deposit-taking institutions (MDIs), commercial banks operating in the microfinance sector, and associate members such as development partners, wholesale lenders, consultants and academic institutions with microfinance programmes.

Founded in November 1996 through the collaboration of organisations with an interest in microfinance services, AMFIU has played a key role in advocating for policy reforms and lobbying the government to create a more enabling environment for the microfinance industry.

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