KAMPALA, February 24, 2026 — The Bank of Uganda [BoU] has extended the deadline for regulated financial institutions to transact exclusively with licensed large Savings and Credit Cooperative Societies [ SACCOs ], pushing the cut-off date back by six months to September 30, 2026.
The move, announced in an update dated February 23, 2026, provides additional time for compliance under the Microfinance Deposit-Taking Institutions Act, Cap.58, and the MDI [Registered Societies] Regulations 2023.
The central bank had previously directed Regulated Financial Service Providers [RFSPs] to update their Know Your Customer [KYC] processes and ensure they conduct business only with licensed Registered Societies or SACCOs by March 31, 2026. That deadline has now been extended to allow for further stakeholder engagement and regulatory preparation.
In a statement posted on X [Formally Twitter], BoU said the extension would enable it to undertake comprehensive consultations, including sensitisation and public awareness campaigns, on its licensing and supervisory role over eligible SACCOs. The engagements are also expected to inform any necessary adjustments to the current regulatory framework.
The reprieve will particularly benefit larger SACCOs that meet the eligibility threshold — defined as holding voluntary savings exceeding Shs1.5 billion and institutional capital above Shs 500 million. These institutions will now have additional time to compile and submit the documentation required for licensing.
During the extension period, RFSPs have been encouraged to continue supporting registered societies in the process of securing the requisite approvals. The Bank further clarified that it does not expect any regulated financial institution to deny services to eligible SACCOs before the new deadline expires.
The decision is likely to be welcomed by Uganda’s cooperative finance sector, which has been adjusting to heightened regulatory scrutiny aimed at strengthening governance, consumer protection and financial stability.
Market observers note that the extension signals a pragmatic approach by the regulator, balancing enforcement of the new framework with the operational realities facing SACCOs as they transition into a more formalised supervisory regime.
For further information, stakeholders have been advised to contact the Director of the Non-Bank Financial Institutions Department at the Bank of Uganda.
https://thecooperator.news/large-saccos-must-be-regulated-by-bou-attorney-general/
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