Muhame Financial Services SACCO seeks govt support

SHEEMA– The Chairman of Muhame Financial Services SACCO Limited, Lay Canon Robert Kankiriho has appealed to the government to render it financial support so that the institution is able to grow its working capital.

Kankiriho made the call days ago while commissioning the SACCO’s head office in Kabwohe town council, Sheema Municipality.

He said the SACCO which started in 2000 to become one of the biggest SACCOs in Uganda has the challenge of borrowing from commercial banks, yet the latter charge high interest rates.

“We request the government if it could avail us cheap credit, it could help us to access that money to quickly serve our rural co-operators,” he said.

Amon Namara, the General Manager of the SACCO, said government’s capital support would help them recruit more members; thus boosting financial inclusion.

“Our plan is to make our SACCO grow to a level bigger than commercial banks but we want it to remain member-owned since it has grown because of members,” said Namara.

He thanked the Ministry of Trade Industry and Cooperatives for giving them a chance to co-host national celebrations to mark the 100th International Day of Cooperatives on July 2, 2022.

Namara appealed to farmers in the region to entrust the SACCO with their monies, saying managers at the SACCO observe good financial discipline, which is important in safeguarding members’ funds.

“At Muhame Financial Services SACCO, we are committed to ensuring that members get value for their investment. We believe that a SACCO should not grow more than the members and they should be involved in decisions we make as managers if it’s to benefit them.”

Staring with only 32 members, Muhame Financial Services SACCO currently has a membership of 29,000, a turnover of over Shs 17 bln, savings [Shs 10bln], share capital of Shs 6.5bln and a loan portfolio of Shs 20.5bln during the financial year 2021/22.

The SACCO has now expanded to nine branches operating in 14 districts of Greater Ankole which include; Buhweju, Mbarara, Isingiro, Bushenyi, Sheema among others.

It offers school fees loans, agricultural loans, boda boda loans, medium-income loans, and utility loans among others.

Joined by other SACCOs that attended the celebrations marking International Day of Cooperatives in Kabwohe, Muhame Financial Services thanked government for giving SACCOs a tax holiday. “I want to thank government for a 10-year tax holiday which has helped us to increase the savings,” Kankiriho said.

However, the Kankiraho challenged government to allow the existing SACCOs to monitor the upcoming Emyooga and Parish Development model [PDM] SACCOs.

“This money you want to invest in rural communities, if you can pass it through the already existing SACCOs, it will record great wonders in our societies. Recovery won’t be a problem because we have already tested the waters,” Kankiriho emphasised.

Kankiriho also advised government to resolve the issue of multiple regulations which have interfered with the work of cooperatives.

“For instance, you find the Tier 4 Microfinance Law and the Cooperative Societies’ Act as amended conflicting over the smaller SACCOs that are not licensed by Uganda Microfinance Regulatory Authority [UMRA] yet registered under the Ministry of trade,” he said.

Muhame Financial Services SACCO together with Ankole Coffee Producers Cooperative Union [ACPCU] were the co-hosts as Uganda joined the rest of the world to celebrate International Day of Cooperatives at Kabwohe stadium in Sheema Municipality.

https://thecooperator.news/museveni-commends-cooperatives-talks-of-re-establishing-cooperative-bank/

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