Shs 9.5bln compensation revitalises Banyankole Kweterana Cooperative Union

MBARARA CITY, June 16, 2025 –– The Banyankole Kweterana Cooperative Union [BKCU] has been revitalised following a government compensation of Shs 9.5 billion, which has cleared the Union’s debts and boosted its coffee operations.

Speaking at the 52nd Annual General Meeting [AGM] held at the Union’s headquarters in Kakoba, Mbarara City, Board Chairman Abaasa Rubaromba Ainamani thanked the government for the support. The funds were part of a ranch compensation package disbursed by the Ministry of Trade, Industry and Cooperatives [MTIC] in June 2024.

“We are grateful to the Government of Uganda for settling the Shs 9.5 billion in full. This has enabled us to clear debts of nearly Shs 4 billion and reclaim our properties. BKCU now operates debt-free and has resumed full coffee trading,” Ainamani stated.

Once a dominant force in western Uganda’s coffee industry, BKCU was weakened by colonial-era conflicts and financial mismanagement, leaving it heavily indebted and dormant for years. The compensation has allowed the Union to re-establish key operations, including coffee bulking, hulling, and marketing.

“We’re now buying coffee in cash, offering fair prices, and using Shs 5 billion as operational capital. Our stores are active again, and our members are regaining trust in the Union,” he added.

BKCU has also established a Union SACCO with Shs 400 million in start-up capital. It currently has 271 members, a loan portfolio of over Shs 410 million, share capital of Shs 27.38 million, and total savings of Shs 41.81 million.

The Union has invested in coffee roasting to improve value addition and market outreach. A commercial roasting and grinding machine, along with an espresso machine, has been installed to support its entry into the roasted coffee market. “We are now selling locally and plan to expand into exports,” Ainamani said.

Other key initiatives funded through the compensation include: Establishment of coffee nursery beds and mother gardens in Kakoba, Ndeija, and Bwongyera; recruitment of extension workers to enhance coffee quality; settlement of outstanding legal cases; upgrade of hulling machines in Ndeija and Bushenyi.

Others are: Repair of Bushenyi’s weighbridge to boost revenue; purchase of three field trucks to facilitate coffee collection; investments fixed with UBA, Centenary Bank, and Shuuku SACCO, earning Shs 200 million in interest; and financial contribution towards the upcoming International Cooperative Day celebrations in Fort Portal City.

Future plans

The Union aims to: Renew its Fair-trade certification; Rebrand and re-establish relationships with partners such as USADF, Vi-Agroforestry, aBi Trust, Agriterra, and Root Capital; Enhance its management information systems for improved accountability; acquire a colour sorter for coffee grading; purchase land in Kabwohe and Kakoba for expanding hulling services; and onstruct permanent Union offices at Kakoba headquarters.

Ainamani urged board members to remain united during the continued rehabilitation of BKCU: “Disagreements will arise, but let us always resolve them internally for the good of the Union.”

Gorreti Governor, a delegate from Ibanda, applauded the board and urged members to support the Union by supplying it with their coffee. “Let’s not just attend AGMs. If we truly love BKCU, we must trade with it.”

Mbarara City Commercial Officer Karakure Allan Buhanda advised that future AGMs be shorter and build on resolutions from pre-AGM zonal meetings. He also recommended that the SACCO operate independently from the Union to avoid conflicts of interest.

Founded on May 7 ,1958, BKCU once boasted around 350 primary societies but now operates with only 70 active ones. With renewed support and investment, the Union is determined to reclaim its former stature.

https://thecooperator.news/debts-lack-of-working-capital-force-bkcu-to-sell-more-land/

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