MBARARA, December 15, 2025 – The Board of Directors and management of the Banyankole Kweterana Cooperative Union [BKCU] have been formally summoned to appear before the Registrar of Cooperative Societies in Kampala over allegations of gross mismanagement of operations and misappropriation of funds.
The Registrar, Robert Bariyo Barigye, issued the summons following concerns surrounding the utilisation of Shs 9.55 billion received by the union from the Ministry of Trade, Industry and Cooperatives [MTIC].
The funds were paid to the Union as compensation for Ranch No. 29 in Nyabushozi, Kiruhura district, which was subdivided and allocated to squatters under the Ranch Restructuring Scheme introduced by the National Resistance Movement [NRM] government in 1990.
Whistleblower prompts inspection
The summons follows an inspection conducted between November 5 and 7, 2025, triggered by a whistleblower’s complaint alleging that the union’s leadership mismanaged the compensation funds instead of using them to revitalise the coffee cooperative.
According to the whistleblower, the money was spent in ways inconsistent with BKCU’s core mandate of coffee bulking and storage. The allegations include a conflict of interest in which Shs100 million was reportedly used to purchase a coffee roaster and coffee without the involvement of the procurement committee.
Additional claims relate to unplanned construction and renovation works, funds allegedly channelled through individual accounts for coffee purchases, and the recruitment of incompetent staff.
Official inspection and response
In a letter dated October 28, 2025, Registrar Barigye formally notified BKCU of the impending inspection. “Pursuant to Section 58 of the Cooperative Societies Act, Cap. 107, this office will conduct a supervision and inspection exercise into the affairs of the union from November 5th to November 7th, 2025,” the letter stated.
It further noted that the exercise would conclude with a meeting involving the Board of Directors and the Supervisory Board on November 7, 2025, at the union’s offices in Kakoba, Mbarara City.
However, when asked to comment on the inspection, Assistant Registrar Joseph Lutalo downplayed its public significance, stating: “It is part of our supervisory role. We were at Banyankole Kweterana to carry out our mandate, as the law provides for inspection and supervision of cooperatives in Uganda.”
Final summons to discuss findings in Kampala
In a subsequent letter dated December 12, 2025, the Registrar invited the union’s Board of Directors and management to a meeting to discuss the findings of the supervision and inspection report.
“Based on the complaints received, this office conducted an investigation into the affairs of the union and compiled a report. We propose to discuss this report with you to guide further action,” the letter stated.
The meeting is scheduled for Friday, December 19, 2025, at 10:00 a.m. in the Ministry boardroom in Kampala.
BKCU Board Chairman Ainamani Abaasa Rubaromba confirmed receipt of the invitation and said he would attend. “I was officially invited, and since I am not aware of the allegations, I will appear and explain accordingly,” Rubaromba said.
BCKU’s Supervisory Board Chairperson and Mbarara City Commercial Officer are also invited to attend the meeting to discuss the supervision and inspection report on the affairs of the Union.
Background
Founded on May 7, 1958, BKCU was once a dominant player in western Uganda’s coffee industry, with about 350 primary societies. Over the years, however, the union has been weakened by colonial-era conflicts, leadership disputes and financial mismanagement. It is currently heavily indebted, with only about 70 active primary societies remaining.
https://thecooperator.news/banyankole-kweterana-finally-receives-shs-9bln-for-ranch-compensation/
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