KAMPALA, September 19, 2025 –Ugandan cooperators have they will in the near future have a fully-fledged Cooperative Bank established after yesterday’s launch of the National Cooperative Savings and Credit Society Limited [NCSCSL] at the National Cooperatives Conference 2025 at UMA Showground in Lugogo, Kampala.
The first Cooperative Bank, established in 1964, under the Cooperative Societies Statute of 1963, was closed in May 1999 by the Bank of Uganda, over undercapitalisation and mismanagement, although the process of the sale of its assets remains controversial.
The new initiative aims to address longstanding challenges faced by Uganda’s farmers and cooperatives, including limited access to finance, weak governance, regulatory hurdles, and low levels of digitisation and cooperative education. Uganda has more than 21,000 registered cooperatives in sectors ranging from agriculture and housing to transport and fisheries. NCSCSL is expected to provide accessible financial services while mobilizing national resources to strengthen savings and credit institutions [SACCOs].
“The launch is not just about creating a financial institution, it is about building a legacy of self-reliance, solidarity, and economic empowerment for all Ugandans,” said Jonas Tweyambe, Chairperson of the Uganda Cooperative Alliance [UCA].
According to UCA, and the Ministry of Trade, Industry and Cooperatives [MTIC], NCSCSL will begin as a Tier 4 cooperative society under the Registrar of Cooperatives. This allows cooperatives to pool resources gradually, strengthen governance, and build ownership before moving through phased upgrades to Tier 3 Microfinance Deposit-taking Institution, Tier 2 Credit Institution, and ultimately a fully licensed Tier 1 National Cooperative Bank. Phase 1 aims for Shs 10 billion in capitalisation, with a long-term target of Shs 200bln.
Membership is open to all registered primary and tertiary cooperatives in the country, with shares priced at Shs 100,000 and a minimum of 10 shares. So far, over Shs 86.5 million has been pledged, including Shs 10mln from the UCA. Governance will be overseen by a nine-member board and a 14-member interim steering committee representing major cooperatives and key government ministries.
The National Cooperative Conference 2025, themed “Driving Inclusive and Sustainable Livelihoods through Cooperatives for a Better World,” provided a platform to discuss policy, celebrate cooperative achievements, and promote inclusion of women, youth, and marginalised groups.
State Minister for Cooperatives Fredrick Gume Ngobi noted that the law allows the initiative but emphasised the need for discipline, capital, and commitment from cooperators to see it through. Conference highlights included exhibitions of cooperative innovations, policy discussions on financing and digital transformation, and recognition of outstanding cooperatives.
Dr. Fred Muhumuza, an economist urged cooperators to carefully study the past challenges of the defunct Cooperative Bank and draw lessons from successful regional models as they embrace the idea of a new cooperative bank.
As Uganda embarks on the journey to establish another Cooperative Bank, its neighbours, Kenya and Tanzania already have fully-fledged cooperative banks-The Cooperative Bank of Kenya, and Cooperative Bank of Tanzania, respectively, with the latter being launched in May this year. Efforts are are ongoing in Rwanda to have the cooperative bank launched.
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
