KAMPALA, September 17, 2026 — Kibaya Youth Development Co-operative Savings and Credit Society Limited in Mbarara City has become the latest large SACCO in the country to receive a licence from the Bank of Uganda [BoU].
According to a press release published in one of the leading dailies on Thursday, the BoU issued the licence to the cooperative commonly known as Kibaya Youth SACCO, on September 16, 2026.
“Pursuant to Regulation 8 of the Micro Finance Deposit-Taking Institutions [Registered Societies] Regulations, 2023, the Bank of Uganda hereby informs the public that M/s Kibaya Youth Development Co-operative Savings and Credit Society Limited has fulfilled the requirements for licensing,” the press release reads in part.
The BoU added: “Accordingly, the Regulated Society is now under supervision and regulation of the Central Bank.”
Kibaya Youth SACCO was formed in 2004 and registered under the Cooperative Statute in the same year, with registration certificate number 6966 issued on February 17, 2004.
The SACCO was established by a group of people in Nyakayojo Division and surrounding areas who were marginalised in various aspects of life but believed they could improve their livelihoods through social and economic empowerment.
The group comprised mainly subsistence farmers who produced primarily for household consumption, with little surplus for sale to generate income. This prompted members to mobilise collectively and pool resources to improve food security and household incomes.
The cooperative says its vision began taking shape in 2001, when the group started welcoming new members. Since then, the society has steadily grown.
As at October 31, 2022, the SACCO had 3,900 members, savings of Shs1.60 billion, share capital of Shs 616.94 million and a loan portfolio of Shs 2.39 billion.
The Central Bank defines large SACCOs as those holding voluntary savings exceeding Shs 1.5 billion and institutional or share capital of at least Shs 500 million.
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 before the extended September 30th deadline 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 move 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.
SACCOs 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 BoU.
Earlier this year, the Central Bank directed Regulated Financial Service Providers [RFSPs] in the country not to conduct business with large SACCOs that had 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 large SACCOs across the country are earmarked 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 regulated by the Tier 4 Microfinance and Money Lenders Act, 2016, and the Micro Finance Deposit-Taking Institutions Act, 2003.
https://thecooperator.news/bou-issues-licence-to-kabaroles-kihondo-tukwatanize-sacco/
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