LIRA CITY, January 7, 2026 – The leadership of the Lango Clan Leaders’ Savings and Credit Cooperative Society Limited [SACCO] has urged its members to increase their shareholding in order to strengthen the organisation’s capital base.
Formed in 2021, the SACCO currently has 204 members drawn from 175 clans across the Lango Chiefdom. Its primary objective is to improve the financial wellbeing of clan leaders through savings mobilisation and the provision of affordable credit.
Members are required to pay a membership fee of Shs 20,000, make regular monthly savings and access loans to support start-up businesses and other income-generating enterprises.
However, the SACCO Chairperson, Mr Simon Odepe, noted that the organisation is facing challenges, particularly in loan recovery, savings mobilisation and the purchase of shares.
“We are not doing well at the moment in terms of savings, buying of shares and loan recoveries, but we are hopeful that everything concerning the SACCO will be streamlined in the next few months,” he said.
Mr Odepe explained that the SACCO recently held a meeting with members to chart a way forward, during which it was agreed that increasing share purchases would help grow the organisation’s financial pool.
“Recently, we held a meeting to brainstorm on the activities the SACCO can undertake. I want to call upon members to fully embrace the idea of buying shares because it will help us attain better financial stability and develop both the SACCO and ourselves,” he added.
The Lango Paramount Chief, Eng. Moses Michael Odongo Okune, also known as Won Nyaci me Lango, who initiated the formation of the SACCO, reaffirmed the cultural institution’s commitment to strengthening it.
Mr Okune recently presided over the swearing-in of various committees, including the SACCO committee, at the Lango Cultural Centre in Lira City East Division during a sitting of the Clan Leaders’ Council.
“For the SACCO, we are working towards revamping it to make it stronger. Now that we have formed committees to support smooth management, it will be beneficial for our members and the culture as a whole if we all join hands to develop it,” he said.
Meanwhile, Mr Benson Taiwo, the clan head of Acukuru Amola, said buying shares is crucial for any organisation seeking growth and development.
“I support the idea of buying shares in the SACCO because any institution that wants to grow must invest in itself. This will bring much-needed capital into the SACCO,” Mr Taiwo said.
According to experts, a robust capital base for a SACCO provides several critical advantages related to financial stability, operational capacity, and member confidence.
Key advantages cited by experts include:
Financial stability and resilience: A strong capital base acts as a buffer against potential losses, such as loan defaults or economic downturns. This ensures the SACCO remains solvent and can continue operating even under stress, protecting members’ savings.
Capacity for growth: Significant capital allows a SACCO to expand its product and service offerings, invest in new technology (like mobile banking platforms), open new branches, and reach more members. It underpins the ability to manage a larger loan portfolio.
Enhanced Borrowing Power: A well-capitalised SACCO is viewed as less risky by external lenders and financial institutions. This enables the SACCO to borrow funds at more favorable interest rates and terms when needed for liquidity or growth initiatives Regulatory compliance: Financial regulatory bodies often set minimum capital adequacy ratios. Maintaining a robust capital base ensures compliance with these legal requirements, avoiding penalties, restrictions, or even license revocation.
Increased member confidence: A strong financial foundation builds trust among current and prospective members. Members are more likely to save and invest in a SACCO they perceive as stable and secure, which in turn attracts more capital and deposits.
Ability to offer competitive products: With a stable financial footing, a SACCO can offer more competitive loan interest rates and better returns on savings and deposits to its members, as it doesn’t need to prioritise short-term profits over member benefits as intensely
In essence, a robust capital base allows a SACCO to better serve its members, withstand financial shocks, and grow sustainably over the long term.
https://thecooperator.news/dokolo-emyooga-sacco-approves-share-purchase-to-boost-capital-base/
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