Emyooga loan defaulters wanted as over Shs 200mln remains unpaid in Masaka City
The move follows concerns over poor loan recovery and the alleged mismanagement of funds by several Emyooga SACCOs operating within the city
MASAKA CITY, July 17, 2026 — Authorities in Masaka City have launched a manhunt for leaders and members of Emyooga SACCOs who have allegedly failed to repay more than Shs 200 million disbursed to them during the financial years 2023/24 and 2024/25.
The move follows concerns over poor loan recovery and the alleged mismanagement of funds by several Emyooga SACCOs operating within the city.
Speaking during a recent meeting held at the Masaka Rehabilitation Centre to review the performance of Emyooga SACCOs, the Resident City Commissioner [RCC] for Masaka City, Ahamada Washaki, said more than 20 Emyooga SACCOs had failed to perform and had mismanaged the government funds.
He said the city security committee had identified several SACCOs whose leaders and individual members allegedly misused the funds before disappearing.
Washaki explained that 36 SACCOs in the Nyendo-Mukungwe and Kimanya-Kabonera constituencies received an initial seed capital of Shs 1.2 billion in 2022, with each SACCO capitalised with Shs 30mln. The money was subsequently disbursed to members as loans at an annual interest rate of eight per cent.
“It is unfortunate that some Emyooga SACCOs have failed to progress, and I will not tolerate people who are frustrating this Presidential initiative on wealth and job creation,” Washaki said.
“I have instructed the security agencies to arrest all those who misused the Emyooga funds so that they can be prosecuted.”
Masaka Regional Emyooga Programme Coordinator Gonzaga Mutesasira blamed the poor performance on weak leadership, accusing some SACCO officials of diverting funds meant for members.
He said the Nyendo-Mukungwe and Kimanya-Kabonera constituencies each received Shs 560mln in seed capital, but much of the money had not been properly utilised.
“I have repeatedly guided SACCO leaders on proper financial management to ensure sustainability, but some have instead allocated the money to themselves at the expense of eligible members,” Mutesasira said.
He added that his office was working closely with the city security committee to trace the leaders responsible for the alleged misappropriation of the funds.
According to Mutesasira, more than Shs 200mln disbursed to SACCO members as loans has remained unpaid since 2022.
Ronald Kalungi, chairperson of the Nyendo-Mukungwe Salon Operators Emyooga SACCO, said their group received Shs 30mln in seed capital, but some members of parish-level Emyooga associations disappeared after receiving the loans.
He identified the Katwadde, Bulayi and Kitovu-Ndegeya parish associations as some of those whose members allegedly disappeared with more than Shs 10mln.
“I have tried to trace the members of these SACCO associations without success after they disappeared with the money,” Kalungi said, adding that the matter had been reported to the police.
Despite the challenges, Mutesasira said several SACCOs had performed well in terms of savings, loan repayment and governance.
He singled out the Kimanya-Kabonera Elected Leaders SACCO and the Nyendo-Mukungwe Taxi Drivers Emyooga SACCO among the best-performing groups in Masaka City, noting that they had properly utilised both the initial Shs 30mln seed capital and an additional Shs 20mln received under the programme.
George Kiberu, chairperson of the Nyendo-Mukungwe Taxi Drivers SACCO, said the SACCO had so far received Shs 100mln under the Emyooga programme since 2022, and its assets had grown to Shs 180mln.
He said the SACCO had disbursed loans worth Shs 63mln to its members and invested in two minibus taxis to generate additional income for the cooperative.
Masaka City Commercial Officer Joseph Mugerwa said some SACCOs were struggling to recover funds from members who had misused the loans or disappeared altogether.
Launched in August 2019, Emyooga is a Presidential initiative aimed at promoting wealth and job creation through specialised enterprise groups, including mechanics, carpenters, welders, restaurant owners, journalists, boda boda riders and taxi operators, among others.
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