Mbarara City mechanics launch SACCO with Shs 160mln boost
According to Stephen Mwawu, the Interim Chairman of MCMU, the initiative to unite mechanics in Mbarara City was first introduced by Area Member of Parliament (MP) Mwine Mpaka in 2021
MBARARA CITY, April 4, 2025 – Mechanics in Mbarara City, under the umbrella of the Mbarara City Mechanics Union [MCMU], have launched a Savings and Credit Cooperative Society [SACCO] named Mbarara City Mechanics Union Savings and Credit Cooperative Society Limited [MMS]. The SACCO is designed to provide members with access to quick, low-cost financing.
According to Stephen Mwawu, the Interim Chairman of MCMU, the initiative to unite mechanics in Mbarara City was first introduced by Area Member of Parliament (MP) Mwine Mpaka in 2021.
“Unlike other groups in Mbarara City, the mechanics were not united and had no sense of belonging. So, when Mpaka was campaigning for MP in 2021, he found it difficult to support us. Instead, he encouraged us to unite so that we could more easily receive support as a union,” Mwawu explained. He added that Mpaka initially contributed Shs 15 million to various groups before they came together to form MCMU, which now boasts a membership of 3,000.
The credit cooperative was officially launched on Saturday at Nyamityobora Playground in Kijungu Cell, Kakoba Division, in Mbarara City South, with Mpaka representing the event in the Ugandan Parliament.
Mwawu disclosed that the cooperative offers loans based on members’ savings, at an interest rate of 1.5 percent. He urged the public to buy shares in the organisation to ensure its sustainability and future development.
In his speech, MP Mpaka commended the mechanics for forming a financial union that would provide them with access to affordable finance, requiring no collateral. “This SACCO will greatly benefit the mechanics, especially the youth, who often lack collateral, such as land titles, to obtain loans from commercial banks,” Mpaka noted.
Herbert Kamugisha, a political aspirant, encouraged the youth in Mbarara City and beyond to consider working in the informal sector, rather than seeking the increasingly scarce white-collar jobs in Uganda. “We want the youth in this city and other areas to take inspiration from what the mechanics have done. Let’s unite and develop ourselves through SACCOs,” Kamugisha said.
Rita Bwahika, the Woman MP for Mbarara, challenged the SACCO leadership to ensure close supervision of its operations. “Don’t invest money where your eyes don’t see. Always visit the SACCO offices to check for any issues with the management and advise them accordingly,” Bwahika advised.
The chief guest, Thomas Tayebwa, Deputy Speaker of Parliament, encouraged the mechanics, particularly the youth, to learn the importance of saving if they hope to achieve future success. “Elon Musk once said that it’s easy to make US$ 10,000, but it’s hard to save US$ 10,000. That’s why sometimes we go to religious places to pray for the wisdom to learn how to save,” Tayebwa said.
President Museveni contributed Shs 30 million, while Tayebwa contributed Shs 20 million. MPs, local leaders, and businesspeople also made contributions, bringing the total to about Shs 160 million to support the SACCO.
https://thecooperator.news/mbarara-city-saves-shs-3-billion-on-two-road-projects/
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