Sheema SACCO innovates to mitigate climate change

SHEEMA, August 6, 2025 –– Kigarama People’s SACCO has taken bold and innovative steps to address the impact of climate change. Based in Sheema district, the financial institution has launched a Water, Sanitation, and Green Loan product, designed to help its members sustainably mitigate the effects of climate change.

Micah Akatukunda, Internal Auditor of the SACCO, presented the initiative recently while pitching for the Second Edition of the Coop360° Innovations Award 2025, organised by The Uhuru Institute for Social Development [TUI].

According to the SACCO managers, the innovation represents a high-impact, sustainable approach that is firmly rooted in local practices, and expects the innovation to be selected for the grand finale this November.

Akatukunda explained that the inspiration for the new product came from a 2021 study conducted by the SACCO.

“In 2021, Kigarama People’s SACCO carried out a study, and this study uncovered a growing climate crisis in the hilly areas of Buhweju and Sheema districts, where farming seasons have been disrupted,” he said.

Akatukunda, the chief presenter, highlighted how Buhweju District, once blessed with three farming seasons, now struggles with just two shortened and erratic seasons, characterised by brief and destructive rainfall.

“When we conducted the study, we found out that people were trekking long distances in search of water for domestic purposes, which was costly. You find someone spending about Shs 20,000 on fetching water. But when we intervened, and we brought in these affordable water harvesting systems, people were able to save this money that was being spent on transport costs to fetch the water,” he noted.

“During the study we conducted, we wanted to see how the changing climatic conditions are really affecting or will affect our farmers because Kigarama People’s SACCO is a farmer-based SACCO. So that means anything that disrupts farming activities will directly affect SACCO operations. We selected two districts of Sheema and Buhweju as our catchment area, and we found that from 2005 to around 2010, in Buhweju, people used to enjoy three farming seasons. But due to deforestation and wetland encroachment, they now only have two seasons, which are short. This has resulted in low yields and water scarcity,” Akatukunda further explained.

“As management of the SACCO, we sat down and came up with a solution to mitigate climate change, which is here to stay. We came up with this solution called ‘Water, Sanitation and Green Loan’,” he added.

Implementation

“In 2021, we carried out a study and in 2022 we designed the product, conducted training, and began an afforestation campaign. Then in 2023, we distributed a total of 80 water tanks to our members. In 2024, we integrated environmental education into schools and also gave out 410 water tanks,” Akatukunda explained.

“In 2025, we anticipate distributing another 200 water tanks, while next year, we want to pilot a solar-powered irrigation system,” he noted.

Affordability

“In designing this Water, Sanitation and Green Loan product, we ensured it is affordable, with an interest rate of 1.9 percent on a reducing balance per month. Unlike other products, we don’t charge any processing fees. We also signed a memorandum of understanding with our suppliers and contractors to offer services at subsidised rates, making this product unique and different from other loan products,” he said.

Akatukunda added that since the product’s inception, the SACCO has invested significantly in its implementation.

“We’ve invested Shs 286,510,000 in water tanks distributed to members as loans. For afforestation activities, we’ve provided loans worth Shs 48 million to our clients. Training and capacity building have cost us Shs 44 million,” he noted.

He said that if the SACCO wins this year’s Coop360° Innovations Award, more funds will be channelled into expanding the irrigation project.

“If we are lucky to win this award, we will expand water access and irrigation by Shs 17 million and also train over 3,000 farmers, which will cost us about Shs 3 million,” he said.

“Through this innovation award, I’m excited and I have learned a lot, which I’m going to implement to improve this product and positively impact lives. I think this has been a learning session, and the knowledge we have acquired will help us polish up the product to better the lives of people in our communities,” Akatukunda stated.

Feedback from judges

Charity Byarugaba, one of the Coop360° Innovations Award judges, urged SACCO managers to support their presentations with realistic statistics.

“Especially on the aspect of women being affected by water shortages – help us clarify the numbers. When you say you have 25,799 members, what is the conversation? What does it look like? When you say more women are benefiting, we would like to see the numbers. And then the youth – how many youths are on the programme or are members? And of course, persons with disabilities as well,” she noted.

“You also said that one of your milestones is having trained 80,000 farmers and distributed 1,400 trees. So help us understand – how do you train, and who are these farmers?” Byarugaba added.

Jane Amuge Okello, another judge and Operations Director at TUI, urged SACCO presenters to communicate more clearly how their members are benefiting.

She also encouraged them to adopt a more appealing tone in their presentations to better convey their message.

Brian Jjemba, lead judge of the Coop360° Innovations Award, reminded participants to focus on their business model.

“Remember, you are a financial institution. So, I expected to see you telling us that ever since you began giving out those loans, you have generated a portfolio of, say, Shs 582 million. Being able to show this is important, because in this industry, that’s how we tell whether a portfolio is strong or not,” Jjemba stated.

Looking ahead

Juliet Kyosimiire, CEO of Kigarama People’s SACCO, said the institution is prepared for the grand finale of the Coop360° Innovations Award in November 2025.

“It has been great, we have interacted and learned more about how to improve our presentations, which I think will take us to the next level. We are eager and interested to see ourselves progress. We have been able to compete and win in other competitions, such as the City Awards and the Entrepreneurship Award, while competing against other SACCOs. We hope to improve, and next time you’ll be excited to see us presenting,” Kyosimiire noted.

About the award

The Coop360° Innovations Award is a collaborative initiative between Uhuru Institute for Social Development (TUI) and partners including the Bank of Uganda, Busara Centre for Behavioural Economics, Goldstone, NTV Uganda, and theCooperator Magazine. The Award aims to foster competitiveness and stimulate creativity within Uganda’s cooperative sector, ultimately driving progress and innovation across multiple fields.

This year marks the second edition of the Coop360° Innovations Award, following the inaugural event held in 2024.

Background

Kigarama People’s SACCO began as a public limited company with just 24 members, and was officially registered as a SACCO on 11 April 2005, in Kigarama Subcounty, Sheema district. It transitioned from a humble farmer association – Matooke Twetungure Association, into a pillar of socio-economic transformation in the western region.

Currently, the SACCO boasts 25,799 active members, total assets of over Shs 18 billion, a gross loan portfolio of Shs 15.5 billion, and share capital totalling Shs 9.8 billion. It operates nine branches and five outreach centres across Ibanda, Mbarara City, Sheema, and Sanga in Kiruhura district.

https://thecooperator.news/members-flee-kigarama-peoples-sacco-over-leadership-squabbles/

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