KAMPALA, September 29, 2026 — The Bank of Uganda [BoU] has extended the mandatory licensing deadline for large Savings and Credit Cooperative Societies [SACCOs] from September 30, 2026, to March 31, 2027, giving affected institutions an additional six months to comply with regulatory requirements.
The extension follows a recent SACCO stakeholders meeting convened by the Speaker of Parliament, Jacob Markson Oboth-Oboth, and an earlier directive issued on September 14 by BoU Governor Michael Atingi-Ego, which warned that regulated financial service providers would be barred from transacting with unlicensed large SACCOs from October 1, 2026.
Under an updated notice issued on September 28, 2026, the Central Bank granted eligible institutions a six-month grace period to submit licensing applications and complete compliance requirements under the Microfinance Deposit-Taking Institutions Act [Cap. 58] and the 2023 Registered Societies Regulations.
The Central Bank said the regulatory framework applies to large SACCOs holding voluntary member savings exceeding Shs 1.5 billion and institutional capital of more than Shs 500 million.
Eligible institutions have been given 14 calendar days from the date of the notice to obtain and submit Form A licensing applications to BoU.
“All eligible institutions are strongly advised to complete the licensing process within this extended period as there will be no further extensions,” Management stated in the BoU notice.
The Central Bank said the supervisory measures are intended to strengthen depositor protection, safeguard the integrity of the financial system and mitigate potential financial stability risks.
Governance and modernisation drive
The extension of the licensing deadline to March 2027 was a key issue during the 11th National SACCO Conference in Kampala, where cooperative leaders urged tier-4 institutions to embrace regulatory oversight as part of efforts to curb fraud, strengthen cybersecurity and build public confidence.
“One of the things that is affecting us is the issue of regulation,” said Col. Allan Kitanda, Board Chairperson of the Uganda Cooperative Savings and Credit Union [UCSCU].
“We don’t have to compete with commercial banks because we supplement each other. Good governance is not just a regulatory requirement but the foundation for public confidence.”
Progressive compliance and overlapping mandates
Despite concerns among some institutions, several tier-4 entities have already secured licences from the Central Bank. These include Kibaya Youth Development Co-operative SACCO in Mbarara City, EBO Co-operative SACCO in Bwizibwera, Mbarara District, Kyazanga-Kwegatta Microfinance SACCO in Lwengo District, MADFA SACCO in Masindi, and Share an Opportunity Zirobwe SACCO in Luwero District.
However, the licensing drive has also highlighted legal and institutional questions surrounding the regulation of SACCOs in Uganda, where oversight responsibilities are divided among three government entities.
Ministry of Trade, Industry and Cooperatives [MTIC]: Regulates the legal existence and governance of cooperative societies under the Cooperative Societies (Amendment) Act, 2022.
Ministry of Finance, Planning and Economic Development — Microfinance Regulatory Department: Oversees non-deposit-taking tier-4 entities under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
Bank of Uganda: Licenses and supervises large deposit-taking SACCOs under the Microfinance Deposit-Taking Institutions Act.
An opinion issued by the Attorney General in January 2026 affirmed that large SACCOs should fall under BoU supervision to protect members’ deposits.
However, regional stakeholders continue to call for a consolidated regulatory framework modelled on Kenya’s SACCO Societies Regulatory Authority [SASRA], which brings together regulatory oversight of SACCOs under a specialised authority.
With more than 90 large SACCOs earmarked for central bank regulation, the extended March 31, 2027 deadline gives affected institutions additional time to complete structural, financial and technical compliance requirements while maintaining financial services for thousands of members across the country.
https://thecooperator.news/how-speaker-oboth-brokered-bou-sacco-licensing-stand-off/
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