First-ever mobile coop clinic launched in Mbarara with special focus on mobilising capital for new Cooperative Bank
A team of officials led by Assistant Registrar Joseph Lutalo has set up camp in the area to address widespread governance and operational challenges facing cooperatives
MBARARA CITY, November 13, 2025 – The Ministry of Trade, Industry and Cooperatives [MTIC], through the Office of the Registrar of Cooperatives, has launched its first-ever mobile coop clinic in Mbarara City, targeting the western region.
The initiative, running from November 11-14, 2025 at the Amazon Building, is designed to bring essential advisory, training, and compliance services closer to cooperative societies.
A team of officials led by Assistant Registrar Joseph Lutalo has set up camp in the area to address widespread governance and operational challenges facing cooperatives.
The team includes partners such as the Bank of Uganda, The Uhuru Institute for Social Development [TUI], Wakandi, Uganda Cooperative Society and Credit Union [UCSCU], and the Finance ministry.
Purpose and scope of the clinic
Lutalo explained that the mobile clinic system is a vital strategy to reach an estimated 50,000 cooperatives across Uganda, as the central ministry cannot visit every society individually.
“We are here to extend services closer to the people, so that anyone can freely come and receive advisory support on issues affecting their cooperatives,” Lutalo noted.
The three-day event features both physical and online registration, onboarding of new cooperatives, leadership training on governance and compliance, experience-sharing sessions, and the sale and sensitisation of cooperative byelaws.
“We started yesterday [Tuesday] and we are ending on Friday with a key stakeholders’ meeting from the cooperative fraternity to discuss a number of issues concerning the cooperative movement — among them, plans to open a new cooperative bank,” Lutalo said.
Lutalo acknowledged that attendance was initially lower than expected, citing heavy rains and the short notice given for the pilot event. He added that, if the pilot is successful, the ministry plans to roll out the Coop Clinic model nationwide in the coming month.
“It was on short notice; actually, we were testing to see whether it can work. The turnout was not great, but nevertheless, it was a good beginning. We plan to roll it out to other regions within about a month, as we are still in the planning stage,” Lutalo explained.
Push for Shs 150bln to needed to establish a new cooperative bank
A major focus of the discussions was the revitalisation and establishment of a new Cooperative Bank, a project spearheaded by the Uganda Cooperative Alliance [UCA].
According to Winnie Akankwasa, UCA’s Western Regional Manager, one SACCO has already committed Shs 1 billion as share capital towards the new bank. The first Cooperative Bank was previously closed by the Bank of Uganda due to undercapitalisation and poor corporate governance.
Akankwasa appealed to all cooperatives to become shareholders in the new bank, which she confirmed is already incorporated. She outlined the contribution structure: a membership fee of Shs 100,000 per cooperative and a minimum share capital of Shs 1 million [10 shares at Shs 100,000 each].
“In fact, the Cooperative Bank is already launched and registered. We are only waiting for the first AGM, which will be called soon. Please make sure you comply,” Akankwasa said.
However, officials emphasised that to meet the Bank of Uganda’s (BoU) stringent minimum capitalisation requirement of Shs 150 billion, up from the previous Shs 25 billion, cooperatives must aim higher.
Joseph Paul Ocatum, Acting Principal Cooperative Officer at MTIC, urged leaders to raise their ambitions.
“In Uganda, the minimum to start a bank is Shs 150 billion. Each cooperative should be looking to contribute around Shs 3 million, or even more,” he said, stressing the need for collective effort.
Regulatory hurdles and BoU compliance
Officials from the Bank of Uganda used the clinic to clarify the licensing and regulation of large SACCOs.
A BoU representative reported that while three large SACCOs – EBO SACCO (operating as EBO Financial Services Ltd.), Kyazanga-Kwegata Microfinance Cooperative Savings and Credit Society Ltd., and MADFA Cooperative Savings and Credit Society Ltd. – have been licensed, about ten others remain under review.
“The mission of the Bank of Uganda is to promote financial stability and a sound financial system. We want the entry, management, and exit of SACCOs to be orderly. We need a regulator to monitor their operations,” the official said.
Geoffrey Zzawaya, Manager of Ruborogota United SACCO, appealed to MTIC to provide non-interest capital to smaller SACCOs, citing the strict criteria of the Microfinance Support Centre [MSC].
In response, Ocatum stressed that cooperatives must first formalise their businesses and file regular returns (such as annual returns and AGMs) to build credibility before seeking government support. He advised them to increase their own share capital instead of relying on external or “free” funds.
“Let’s take this information seriously. By next year, we should aim to reach the Shs 150 billion target to start the Cooperative Bank. Each cooperative society needs at least Shs 3 million, though they can begin with Shs 1 million,” Ocatum said.
Akankwasa also used the platform to warn cooperators against taking out expensive loans during the festive season.
“Don’t borrow money without understanding the terms and conditions. Many SACCOs collapse because of expensive loans from moneylenders charging interest rates of up to 50 per cent,” she warned.
She further cautioned against loan defaulting and urged SACCO leaders to recover outstanding debts.
“How do you expect the SACCO to operate when you’ve given out all the money and it’s not being paid back?” she asked.
Andrew James Nyakoojo, Manager of Compliance at the Bank of Uganda, confirmed the Shs 150 billion capital requirement, adding that it is only the starting point.
“On top of the Shs 150 billion, you need funds for operations and to hire competent staff. Starting a bank now in Uganda is not as cheap as it used to be when the capital requirement was Shs 25 billion,” Nyakoojo explained.
Already, the National Cooperative Savings and Credit Society Limited has been established. This institution is seen as a precursor to the much-anticipated National Cooperative Bank, envisioned to offer affordable, accessible, and member-driven financial services to unions, Area Cooperative Enterprises [ACEs], and Savings and Credit Cooperative Organisations [SACCOs]—including those under government programmes such as Emyooga and the Parish Development Model [PDM].
The cooperative fraternity is scheduled to reconvene tomorrow for a key stakeholders’ meeting to deliberate further on the future of the cooperative movement and the capital mobilisation drive for the new National Cooperative Bank.
https://thecooperator.news/national-cooperative-conference-2025-set-for-this-week/
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
