Bushenyi poverty levels remain at 11 percent as SACCOs struggle with loan defaults
Data from the Uganda Bureau of Statistics [UBOS] shows that poverty levels across the wider Ankole Sub-region range between 12 percent and 25.8 percent
BUSHENYI, October 12, 2026 — Bushenyi district LC V Chairman Prosper Twebaze has called for a dedicated post-COVID-19 recovery fund to support households and financial institutions struggling with persistent economic pressures, as poverty levels in the district remain at 11 percent.
Twebaze said the absence of targeted recovery measures since the COVID-19 pandemic has contributed to rising loan defaults and non-performing loan portfolios in Savings and Credit Cooperative Organisations [SACCOs].
He made the remarks during a recent supervisory tour of SACCOs in Bushenyi district to assess the causes of rising loan defaults.
“Ever since COVID-19 ended, there have never been post-COVID recovery measures put in place by the government,” Twebaze said. “The government has done little to intervene, leaving people in that COVID stress. In some of the SACCOs we visited, we found significant non-performing loans directly resulting from those lingering effects.”
Twebaze said falling agricultural commodity prices had further weakened household incomes and reduced the ability of members to save and repay loans.
Poverty varies across sub-counties
Data from the Uganda Bureau of Statistics [UBOS] shows that poverty levels across the wider Ankole Sub-region range between 12 percent and 25.8 percent.
Although Bushenyi district has an overall poverty rate of 11 percent, some sub-counties continue to face significantly higher levels of poverty.
Bitoma records 22 percent, followed by Rwejoboro and Kakanju at 21 percent each, Kyamuhunga at 16 percent and Ruhumuro at 12 percent.
Twebaze attributed part of the economic strain in rural communities to the collapse in global green tea prices, which he said had significantly affected household incomes.
“Prices fell, and tea was feeding very many people in this district,” he said. “Now the primary cash crop left is coffee, but it is seasonal and cannot be relied upon for daily household needs.”
He urged residents to diversify their sources of income instead of depending on seasonal agricultural earnings.
“I urge the people of Bushenyi to diversify into whatever income-generating ventures are available, lodge a war on poverty, and save for the future sustainability of their families,” Twebaze said.
SACCOs absorb rising bad debts
The economic pressures are also being felt by tier-four financial institutions, with some SACCOs recording significant loan losses.
At Kyamuhunga People’s SACCO [KYAPS], Supervisory Board Committee Chairman Midragyi K. Muramuzi said the institution wrote off Shs 612.54 million in bad loans in 2025.
Muramuzi said although the SACCO continues to pursue loan recovery, the write-offs represent an unbudgeted cost that reduces the institution’s profitability.
KYAPS Board Chairperson Paul Turyamureeba Kahigi said SACCOs alone cannot eradicate household poverty without stronger collaboration between the public and private sectors.
“Fighting poverty is not an easy war,” Kahigi said. “We are doing our best, and keeping poverty below 26 percent in the sub-region shows that work is being done.”
However, he said limited SACCO capital continues to constrain access to credit, particularly among households with irregular incomes.
“Available SACCO capital is still insufficient to meet the huge demand for credit because when people lack steady incomes, they cannot save,” Kahigi said.
Kahigi said KYAPS recently commissioned an independent impact assessment by Precise International Ltd to evaluate the SACCO’s service delivery and its impact on members.
“The survey showed that members enrolled in KYAPS have experienced relief in fighting household poverty,” he said.
He said many members had used school-fees loans and bursaries to educate their children and improve their homes, although about 26 percent remained vulnerable because of fear of borrowing, natural disasters such as floods and droughts, and business failures.
Women and youth remain excluded
KYAPS General Manager JohnBosco Atwijukire said sustainable growth of financial cooperatives should be measured by improvements in members’ livelihoods rather than the accumulation of institutional assets alone.
He said women and young people remain among those most excluded from the formal money economy, particularly those engaged in unpaid domestic work.
“Our members have grown alongside KYAPS since 1998,” Atwijukire said. “However, we still have masses who remain stuck in the non-money economy, especially women who perform unpaid domestic labour without engaging in income-generating activities.”
He said bringing such groups into the formal money economy requires concerted efforts by government, financial institutions and other community organisations.
“To bring these groups into the money economy is a collective duty for every institution, not just the government,” Atwijukire said.
To address financial literacy and inclusion gaps, KYAPS is working with local religious institutions and municipal authorities to mobilise communities into formal savings schemes and government programmes, including the Parish Development Model [PDM] and Emyooga.
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