MBARARA CITY, January 12, 2026 – The Uganda Cooperative Alliance [ UCA ] recently held a strategic engagement with cooperative societies across the Ankole and Kigezi sub-regions to mobilise support for the re-establishment of a new cooperative bank in the country.
The original Cooperative Bank, established in 1964 under the Cooperative Societies Statute of 1963, was closed by the Bank of Uganda in 1997 due to undercapitalisation and insolvency, leaving the country’s cooperative movement underserved to date.
Speaking at Rwizi View Hotel in Mbarara City where the stakeholders engagement was organised, the UCA Secretary General, Ivan Asiimwe, said the proposed bank would serve as a critical vehicle for Uganda’s economic transformation.
“What has brought us here, most importantly, is the mission to unite and form our own bank – the Cooperative Bank,” Asiimwe said. “Commercial banks make a lot of money, but if the bank is not yours, the profits go to private owners and shareholders. This is our opportunity to have a bank that belongs to us, the cooperators.”
He urged cooperative societies across the country to rally behind the initiative, noting that similar engagements had already been held in Mbale, Gulu and Fort Portal cities, with Kampala next on the programme.
“Wherever we go, people want their own bank. Today we are in Mbarara, and on Monday we shall be in the central region, Kampala,” he added.
Drawing on international examples, Asiimwe cited the success of cooperative banking models worldwide. “In the Netherlands, the biggest bank is Rabobank – a farmers’ bank. In Germany, there are over 1,000 cooperative banks. In Kenya, there is the Cooperative Bank of Kenya. We cannot continue relying on commercial banks when we can have our own,” he said.
Asiimwe explained that a National Savings and Credit Cooperative Society Limited has already been established to meet initial regulatory requirements, with plans to grow it into a fully-fledged cooperative bank.
“So far, we have mobilised over Shs 200 million. Once we raise Shs 5 billion, we shall register as a Micro Deposit-Taking Institution regulated by the Bank of Uganda. If we reach the Shs 150 billion capital requirement, we shall become a fully-fledged commercial cooperative bank,” he said.
He further highlighted the bank’s potential to protect farmers from what he described as predatory middleman practices.
“In villages like ours in Rukungiri, people sell coffee before it even flowers because they need school fees. A trader gives a farmer Shs 100,000, but later earns Shs 5 million from the same garden. This bank will provide crop financing so that farmers can pay school fees and wait to sell their coffee at the right time and at a better price,” Asiimwe explained.
The UCA boss also appealed to teachers to play a role in nurturing cooperative values among learners.
“I would appeal to teachers to teach students about cooperatives – how we unite, how we form banks and how we make insurance work. That is how we can develop as Africans,” he said.
The State Minister for Cooperatives, Fredrick Ngobi Gume, officially opened the workshop, emphasising the strategic importance of Uganda’s estimated 14 million cooperators.
“A cooperative bank is not just about lower interest rates; it is strategic because you are embracing a business enterprise,” Gume said. “Every financial year, money is channelled to parishes. How I wish this money was passing through a cooperative bank.”
He encouraged cooperatives to think beyond agriculture and consider banking as a complementary sector, while also urging them to tap into regional and continental markets.
“This bank will support value addition. We want you to add value to your coffee and capture the East African Community and African Continental Free Trade Area markets – a combined market of 1.4 billion people,” the minister said.
Abaasa Ainamaani Rubaromba, Board Chairman of the Banyankole Kweterana Cooperative Union [BKCU], said a cooperative bank would better understand the unique risks faced by farmers.
“Commercial banks’ services do not adequately cater for farmers. We have high hopes that this initiative will revive access to affordable credit. Unlike commercial banks, this will be our institution – we shall own it, attend its annual general meetings and shape decisions according to our interests,” Rubaromba said.
The UCA is calling upon cooperatives to participate by purchasing shares valued at Shs 100,000 each, with a minimum requirement of 10 shares, as part of the drive towards attaining full commercial bank status.
https://thecooperator.news/uca-engages-coffee-cooperatives-on-revival-of-cooperative-bank/
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