Mbarara city youth SACCO defies odds to reach Shs 1.4 billion in share capital

Mbarara City, February 17, 2026 – Despite facing development challenges, Kibaya Youth Development SACCO Limited has recorded a year of remarkable growth, achieving a 26 per cent rise in share capital to Shs 1.42 billion.

The results were unveiled during the SACCO’s 22nd Annual General Meeting [AGM], held on Friday at its headquarters in Kibaya Trading Centre, Mbarara City. The institution also made history by complying with the Amended Cooperative Societies Act 2022, convening its AGM within 60 days of the close of the financial year.

Board Chairman, Edward Muhumuza Komunda, reported that membership increased by 25 per cent, rising from 6,527 to 8,719. Total savings grew by 32 per cent to Shs 4.44bln, while the loan portfolio expanded to Shs 6.2bln. As a result, dividend payouts climbed to Shs 703 million, up from Shs 478mln the previous year.

“This tremendous performance is largely attributed to our members, who have entrusted us with managing this institution and continued to patronise the SACCO,” Muhumuza said. “President Museveni’s leadership has given us confidence, but it is our unity that drives us forward.”

Addressing the healthcare gap

In a bold step towards social investment, the board proposed establishing a specialised medical facility, to be known as Kibaya Youth Tweragurize Clinic. The project aims to provide affordable healthcare services and potentially introduce a health insurance scheme for members.

“Before we bury you, we want first to treat you,” Muhumuza told delegates. “We want our members to live longer — to die of old age, not from curable diseases. If you embrace this idea, we can launch a campaign to ensure our members enjoy healthy lives to match their healthy investments.”

However, the proposal sparked debate. Dr John Busingye, a delegate from the Ruti branch, urged the board to think more ambitiously.

“A clinic is not a strategy; they do not admit patients there,” he argued. “Why not expand this into a specialised hospital that could attract funding from government or non-governmental organisations?”

Tackling multiple borrowing

The leadership also issued a stern warning about loan defaults and the practice of “multiple borrowing”. Muhumuza criticised LC I chairpersons who facilitate fraud by signing multiple land agreements for the same collateral.

“We have members who sell collateral while they still have an active loan. Some LC I chairpersons collude to create multiple land agreements for the same plot,” he said. “I appeal to the chairpersons here: avoid these small bribes because the burden will ultimately fall on you. Some LC I chairpersons have already fled their homes because of these debts.”

Mbarara City Mayor, Robert Mugabe Kakyebezi, echoed these concerns and encouraged the SACCO to introduce loan rescheduling options to prevent members from resorting to predatory moneylenders.

“The road is for all of us, but poverty is personal,” Kakyebezi said. “Avoid multiple loans. If you are facing challenges, seek assistance from the SACCO through a top-up facility instead of turning to moneylenders who may seize your property.”

Promoting financial literacy and accountability

The SACCO leadership also addressed what they described as an “allowance culture”, where members avoid attending training sessions unless transport refunds are provided.

“Civic education is for your own benefit. If we train 800 members and each demands transport reimbursement, it consumes Shs 15 million of your own profits,” Muhumuza explained. “Without training, we see poor financial discipline. Someone takes a Shs 5 million loan to stock a shop, but before reaching home spends it at a bar to impress others. Within three months, they are unable to meet repayments.”

Robert Asiimwe, Senior Institutional Development Officer at the Uganda Cooperative Alliance [UCA], reminded delegates of their responsibility to represent members effectively.

“A delegate must be patriotic and committed. If one delegate is absent, it means the 30 or 50 members they represent have effectively missed the AGM,” Asiimwe noted. He urged delegates to promote SACCO products and fully understand the services they oversee.

Rogers Denis Okambo, Deputy Registrar at the Ministry of Trade, Industry and Cooperatives [MTIC], commended the SACCO for its regulatory compliance.

He encouraged the board to facilitate pre-AGM meetings to ensure that decisions brought forward genuinely reflect grassroots members’ views.

“We need success stories at future AGMs. Members should be able to demonstrate how this SACCO has transformed their lives so that we can assess our impact in 10 or 30 years’ time,” Okambo said. He cautioned management to prioritise quality over rapid expansion: “Portfolio quality is more important than portfolio size. If your capital base is strong and your portfolio healthy, economic shocks will not destabilise you.”

Improving member welfare

Allan Karakure Buhanda, Mbarara City Commercial Officer, commended the SACCO’s efficiency, noting that timekeeping at the AGM had been exemplary and set a benchmark for others.

However, he challenged the board to ensure that the SACCO’s growth translates into tangible benefits for its members.

“The SACCO is expanding — constructing modern buildings and achieving impressive developments — but are members progressing alongside it?” he asked. “We are not here merely to declare dividends or erect multi-storey buildings, but to improve the welfare and living standards of our members. It is better to declare lower profits if members are advancing. If members prosper, the SACCO will prosper. But if the SACCO grows faster than its members, it risks collapse due to a weak foundation.”

A legacy of growth

Kibaya Youth Development SACCO was founded in 2000 by four visionary young men and formally registered in 2004. The founder members were Deusdedit Baryamujura [first General Manager), Deogratiuos Bainomugisha [founding Board Chairman], Justus Tugume [Secretary], and Ntare Faustin [Treasurer].

From a modest group of 30 pioneers, the institution has grown into a regional force, with thriving branches in Ruti, Koranorya and Nyamitanga.

Looking ahead to 2026, the SACCO is targeting a membership of 10,000 and a loan portfolio of Shs 7.5 billion, an ambitious goal that reflects its continued confidence and momentum.

https://thecooperator.news/mbarara-city-launches-community-audit-to-fact-check-pdm-other-programmes/

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