KAMPALA, July 8, 2026 — The Bank of Uganda [BoU] has continued issuing licences to large Savings and Credit Cooperative Organisations [SACCOs] across the country, with Kihondo Tukwatanize Co-operative Savings and Credit Society Limited becoming the latest institution to receive approval.
The cooperative, commonly known as Kihondo Tukwatanize SACCO, is located in Kichwamba Subcounty, Kabarole district. It was granted a licence by the central bank, as announced on July 7, 2026.
The BoU defines large SACCOs as those holding voluntary savings exceeding Shs1.5 billion and institutional or share capital of at least Shs 500 million.
Because these institutions manage substantial volumes of members’ deposits, they are required to operate under the direct regulatory and supervisory mandate of the central bank in accordance with Regulation 8 of the Microfinance Deposit-Taking Institutions [Registered Societies] Regulations, 2023.
Announcing the licensing of Kihondo Tukwatanize SACCO in one of the country’s leading daily newspapers on Wednesday, the BoU stated: “The Bank of Uganda hereby informs the public that M/S Kihondo Tukwatanize Co-operative Savings and Credit Society Limited has fulfilled the requirements for licensing. The Registered Society is now under the supervision and regulation of the Central Bank.”
Some of Uganda’s large SACCOs include Wazalendo SACCO, Exodus SACCO, Parliamentary SACCO, UN Staff SACCO, Shuuku SACCO, Mushanga SACCO and EBO SACCO.
Meanwhile, large SACCOs that have already obtained BoU licences include EBO Co-operative Savings and Credit Society Limited, headquartered in Bwizibwera, Mbarara district; Kyazanga-Kwegatta Microfinance Co-operative Savings and Credit Society Ltd in Lwengo district; MADFA Co-operative Savings and Credit Society Ltd in Masindi district; and Share an Opportunity Zirobwe Co-operative Savings and Credit Society Limited in Luwero district.
The BoU’s mandate to license large SACCOs has, however, faced resistance from some players in the cooperative sector, who argue that the current regulatory framework creates overlapping oversight. The cooperatives are regulated by three government institutions: the Ministry of Trade, Industry and Cooperatives [MTIC], the Microfinance Department under the Ministry of Finance, Planning and Economic Development, and the Bank of Uganda.
Earlier, the central bank directed Regulated Financial Service Providers [RFSPs] not to conduct business with large SACCOs that have declined to submit to its supervision and regulation. However, on February 23, 2026, the BoU extended the compliance deadline from March 31 to September 30, 2026, to allow additional sensitisation and public awareness on its licensing and regulatory oversight of eligible SACCOs.
More than 90 SACCOs across the country are expected to fall under the central bank’s licensing and supervisory framework.
Cooperatives in Uganda are primarily governed by the Cooperative Societies Act, Cap 112, which is operationalised by the Cooperative Societies Regulations. Depending on their operations, SACCOs are also strictly regulated by the Tier 4 Microfinance and Money Lenders Act of 2016 and the Micro Finance Deposit-Taking Institutions Act of 2003.
https://thecooperator.news/sao-zirobwe-sacco-attains-bou-licence-to-save-business/
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