BUSHENYI, April 12, 2026 — Kyamuhunga People’s Co-operative Savings and Credit Society Limited [KYAPS] has reported a strong financial recovery, posting a net surplus of Shs 3.20 billion for the year ending 2025, up sharply from Shs 1.98 billion recorded the previous year.
The results were unveiled at the SACCO’s 27th Annual General Meeting [AGM] held at Kyamuhunga Catholic Parish’s Lamezia Hall, signalling a turnaround after a difficult 2024 marked by member dissatisfaction over performance.
The Western Region-based SACCO also registered robust growth across key indicators. Savings rose from Shs 13 billion to Shs 25bln, share capital increased from Shs 9 billion to Shs 12 billion, while the loan portfolio expanded from Shs 39bln to Shs 54bln.
Board Chairman Paul Kahiigi Turyamureeba attributed the improved performance to intensified loan recovery efforts, which reduced the Portfolio at Risk [PAR] and lowered provisioning costs for non-performing loans.
“Much of the focus was on recovery. When PAR rises, profits are affected because funds must be set aside to cover arrears. This year, we strengthened recovery mechanisms, which significantly reduced provisioning costs,” he said.
Despite the strong performance, the SACCO fell short of its Shs 3.60bln surplus target, largely due to high borrowing costs. Turyamureeba revealed that KYAPS paid about Shs 1.5 billion in interest on external loans, urging members to increase their savings and share capital to reduce reliance on costly financing.
To strengthen internal capital, the board proposed a recapitalisation plan requiring members to reinvest Shs 400 from their Shs 1,800 dividend per share. The move is expected to raise about Shs 460 million in additional share capital.
He cautioned that distributing all profits weakens the SACCO’s financial standing in the eyes of lenders, stressing the need for prudent reinvestment.
Governance concerns and reforms
The chairman also raised concern over emerging cases of vote bribery in SACCO elections, warning that the trend could undermine governance and institutional integrity. He proposed a bylaw to disqualify candidates found to have bribed voters.
“If we allow money to influence elections, we risk getting compromised leaders who prioritise personal recovery of funds over the SACCO’s interests,” he said.
The AGM subsequently adopted a resolution formally banning vote bribery.
Economic realities
Bushenyi District Chairperson Prosper Twebaze noted that despite KYAPS’ growth, poverty levels in the district remain a concern, estimated at 11 percent, with some sub-counties recording significantly higher rates.
He attributed this to lingering effects of the COVID-19 pandemic and declining tea prices, urging farmers to diversify income sources beyond traditional cash crops.
Supervisory Committee Chairman Midragyi K. Muramuzi reported that bad loan write-offs rose to Shs 612.54 million in 2025, describing them as an unbudgeted cost that continues to weigh on profitability.
Call for mandatory savings
Chief Guest Col. Allan Kitanda, Chairperson of the Uganda Cooperative Savings and Credit Union [UCSCU] and Vice-Chairman of Wazalendo SACCO, challenged members to adopt mandatory monthly savings of at least Shs 50,000.
He said such discipline would enable the SACCO to build sufficient liquidity and eliminate dependence on expensive bank loans.
“Saving Shs 50,000 a month translates to roughly Shs 1,600 a day, which is achievable. If all members commit, the SACCO will have enough internal resources to grow sustainably,” he said.
Kitanda also urged members to take advantage of the government’s tax waiver for SACCOs, which runs until June 2027, by reinvesting savings into growth projects rather than consumption.
Youth inclusion and growth strategy
He further called for deliberate efforts to attract young people into the cooperative movement, warning that overreliance on older members could undermine long-term sustainability.
On shareholding, Kitanda criticised the practice of holding minimal shares and proposed a target of at least 50 shares per member within five years to strengthen financial resilience.
He encouraged KYAPS leadership to invest in capacity building through UCSCU training programmes and participate in regional exposure opportunities such as the SACCO Africa Conference scheduled for October 2026 in Tanzania.
Social and economic impact
KYAPS General Manager JohnBosco Atwijukire highlighted the SACCO’s growth to over 59,000 members since its founding in 1998, noting its role in transitioning communities into the money economy.
However, he observed that many people, particularly women, remain outside formal financial systems and called for intensified sensitisation to promote inclusion.
Oversight and accountability
During the AGM, Bushenyi District Commercial Officer Christine Hope Komujuni presided over the election of a new vetting committee led by Fr. Vincent Birungi.
She commended KYAPS for its expansion into a regional financial powerhouse with a net worth of Shs 65bln, while urging members to maintain loan discipline and invest in productive ventures.
“Members should use loans for income-generating activities and remain committed to the growth of their SACCO,” she said.
Background
Founded in 1998 with just 15 members and Shs 3 million in capital, KYAPS has grown into one of western Uganda’s largest SACCOs. It now boasts 59,000 members, total assets of Shs 65bln, savings of Shs 25bln, share capital of Shs 12bln, and a loan portfolio of over Shs 54bln.
The SACCO employs more than 120 staff and continues to play a pivotal role in supporting livelihoods and local enterprises across the region.
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