MBARARA CITY, April 3, 2026 – Kakoba-Mbarara Co-operative Savings and Credit Society Ltd [ KAMSACCO ] has elected a new board to steer the institution for the next four years, following a successful 16th Annual General Meeting [AGM] held recently at the Catholic Social Centre in Mbarara City.
Bridget Asiimwe, Chairperson of the vetting committee, said the electoral process strictly adhered to the Co-operative Societies Act and the SACCO’s bylaws to ensure a fair and credible outcome.
“We followed both the SACCO bylaws and the Cooperative Societies Act throughout the process,” Asiimwe said. “The exercise was advertised on November 27, 2025, and closed on December 11, 2025. We received 12 applications for board positions and three for the supervisory committee.”
She added that the process was rigorous and transparent. “The committee carefully shortlisted candidates based on criteria such as level of education, total savings and shareholding in the SACCO, among others,” she noted.
In a rare move within the cooperative sector, outgoing chairman Peregrino Mwekambe stepped down after a single four-year term to pave the way for new leadership. All 15 candidates shortlisted by the vetting committee were elected unopposed.
The new board is led by Godwin Baguma as chairperson, deputised by Annet Mugabi as vice chairperson, with Jackson Mugisha as treasurer and Damian Turu Kihembo as secretary. The Supervisory Committee [SUPCO] comprises Godwin Robert, Anne Kyomugisha and Innocent Nuwagira.
Speaking on behalf of the new team, Baguma welcomed the transparent process and pledged to build on the SACCO’s progress.
“I submitted my application like any other member and was pleased to meet all the requirements during the vetting process,” Baguma said. “I am honoured by the trust placed in me and will work closely with the board and staff to take KAMSACCO to the next level.”
On expansion, Baguma signalled a cautious approach to opening new branches. “While branches are important for growth, we must proceed gradually due to limited resources. We will open one branch at a time as we strengthen our financial position and extend services across the country,” he said.
He also committed to growing the SACCO’s share capital from Shs 811.56 million to over Shs 1 billion during his tenure.
“Share capital is the foundation of any SACCO. Together with the board, we will mobilise members to increase their contributions. Members have already proposed adding at least five shares each, and I am confident we can achieve this target collectively,” he added.
Daniel Musherure, zonal manager for the Microfinance Support Centre [MSC] in the Mbarara region, commended the outgoing leadership for stabilising the institution.
“While performance may not yet be optimal, KAMSACCO has made notable progress compared to previous years. Reaching a net surplus of Shs 100 million is a significant achievement, and I commend both the board and management,” he said.
However, he urged the incoming leaders to uphold integrity and prioritise members’ interests.
“You have not come in to access loans, but to serve the members diligently. The goal should be to improve performance so that by the next AGM, the SACCO can declare dividends exceeding Shs 200 million,” Musherure said.
He warned against poor financial discipline among leaders. “We have encountered cases where board members themselves had loan arrears running into tens of millions. That undermines growth. Leaders must set the standard, if you honour your obligations, you can demand the same from members,” he added.
Musherure identified loan defaults and a past fraud case as major challenges facing the SACCO.
“Loan defaulters and the previous fraud case, currently before court, remain key concerns. Defaults reduce dividends due to increased loan loss provisions,” he said.
He emphasised the need for staff development, noting: “Interest income is the main revenue stream for SACCOs, and credit officers are central to this. Investing in staff capacity is essential.”
Patrick Bakunda, patron of the SACCO and Chief Executive Officer of Uganda Central Co-operative Finance Services Limited [UCCFS], described the institution as strongly member-driven.
“This SACCO is not built around individuals; it has nurtured leadership from within, ensuring smooth transitions. The new team has the capacity to deliver, and with the approved budget and work plan, members can expect improved dividends next year,” he said.
He also issued a stern warning to defaulters. “Members must repay what they owe. Responsible borrowing and repayment are key to improving net surplus and safeguarding members’ savings,” he stressed.
KAMSACCO currently has 287 defaulters owing Shs 1.01 billion, with several cases already before courts and arbitration panels.
Dickson Bakinduka, commercial officer for Mbarara City South, credited SACCOs with shielding communities from exploitative money lenders.
“In the past, money lenders were widespread, but SACCOs have helped curb their influence and protect people’s property,” he said.
He encouraged members to invest more in shares. “We must change our mindset and build wealth through shareholding. Strong participation in SACCOs enables members to improve their livelihoods and financial security,” he added.
Mwekambe thanked members for their support and pledged continued commitment to the SACCO, particularly in pursuing the ongoing fraud case.
“I am grateful for the support you have given me over the past four years. Though I have stepped down, I remain committed to the SACCO’s mission and will continue to support efforts to recover the stolen funds,” he said.
He dismissed speculation that his exit would weaken the case. “The case will not collapse. I will continue to stand with the SACCO in court. We return to court on April 14, 2026, and I remain fully engaged,” he affirmed.
Reflecting on his tenure, Mwekambe said the SACCO had weathered significant challenges. “These past four years have not been easy, with legal battles and operational difficulties, but through collective effort we have managed to overcome many obstacles,” he noted.
He urged cooperative leaders to embrace term limits. “Leadership should be rotational. It is important to create space for others to serve. Fresh ideas and new energy are essential for growth. It is better to step aside with a good record than to be forced out,” he said.
By the close of the AGM, delegates approved the opening of new branches, the resumption of dividend payments after two years of reinvestment, and a maximum liability threshold of Shs 700 million.
Background
Kakoba-Mbarara SACCO was registered on April 28, 2009, with 30 founding shareholders. It now has 1,337 active members, total assets of Shs 2.65 billion and share capital of Shs 810.63mln. The SACCO is implementing a five-year strategic plan aimed at growing its portfolio to Shs 15bln.
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