The big interview: Meet Stephen Mugumya Bongonzya – a seasoned banker and senior cooperator
I am a fully trained professional banker and have been a member of the Institute of Bankers since around 1995
MBARARA CITY, April 28, 2025 — theCooperator News recently sat down with Stephen Mugumya Bongonzya, Vice Chairman of the Uganda Cooperative Savings and Credit Union Limited [UCSCU]—the apex body for SACCOs in Uganda—and Chairman of Shuuku SACCO, one of the largest SACCOs in western Uganda. The seasoned banker and senior cooperator discussed various topics including his family background, banking career, the closure of the Cooperative Bank, and the ongoing debate surrounding Bank of Uganda’s regulatory role over large SACCOs. Below are excerpts from the interview:
Q: Who is Stephen Bongonzya?
A: I was born on 20th September 1965 in Rweigaaga Village, Shuuku Sub-county, to Mr. Adonia and Mrs. Jovanice Bongonzya [both deceased]. My father was able to read and write some Runyankole, while my mother was unfortunately illiterate. They were smallholder farmers but earned enough to educate their children and give us a decent life.
I currently reside in Rweigaaga Cell, Kashozi West Ward, Kashozi Division, Sheema Municipality. I am married and have three daughters who are still in school.
Q: Before joining the Shuuku SACCO Board, what roles did you hold in the banking sector?
A: I worked in the banking sector for 15 years [1991–2005]. I began at Nile Bank, mainly in the Computer Department [as it was then known], but also worked in Internal Audit and served as Branch Manager for Mbarara for two years. I reached the position of Senior Manager at a young age, thanks to my positive attitude, hard work, continuous learning, and team spirit.
Later, I joined the Uganda Institute of Bankers [now the Institute of Banking and Financial Services] as Programmes Manager of the Microfinance Competence Centre [MCC] from 2000 to 2005. Our role was to provide training and technical assistance to a wide range of microfinance institutions [MFIs], including banks such as Centenary, MDIs like FINCA and Pride, SACCOs, and non-deposit-taking credit providers. We even trained participants from Tanzania and Kenya.
Q: What enabled you to serve diligently in your roles?
A: I am a fully trained professional banker and have been a member of the Institute of Bankers since around 1995. Key to my success has been my positive attitude, patience, honesty, objectivity, empathy, and a willingness to support others while continually learning.
I’ve had the privilege of attending training programmes and study tours in the USA, Netherlands, South Africa, Kenya, Tanzania, Thailand, Dubai, Costa Rica, Israel, Rwanda, and Burundi. I’ve provided consultancy services in Uganda, Kenya, Tanzania, Rwanda, and South Sudan. Beyond the cooperative space, I also serve the Church—I am the Head of Laity at St Paul Rweigaaga Church of Uganda, under the West Ankole Diocese.
Q: What did you enjoy most during your banking career?
A: I appreciated the opportunity to learn and practise banking at a professional level. My training exposed me to key areas including banking law, international trade finance, financial reporting, insurance, ICT, strategic marketing, and management.
At Nile Bank, I led several projects such as the merger of the Equatorial Hotel Branch, and the Y2K Project, in coordination with other banks and the Bank of Uganda. At the Institute, I helped launch Africa’s pioneer Diploma in Microfinance, reviewed course materials for professional banking qualifications, and led the ISO Certification Project—earning certification in just six months.
Q: What challenges did you face as a banker?
A: My greatest frustration was in dealing with differing views on lending policies. While working in Mbarara, I often disagreed with Kampala-based credit officers over small clients who lacked land titles. I believed such clients could be served profitably, as competitor banks were already doing so. That rigidity pushed me toward microfinance in 2000.
Q: When did you join the leadership of Shuuku SACCO?
A: I joined Shuuku SACCO’s leadership in 2007. I first served as Chairman of the Supervisory Committee [now Supervisory Board] for six years, and I’ve been Board Chairman since 2014. Interestingly, I’ve never faced a challenger since I joined.
Q: Do you benchmark Shuuku SACCO against other large SACCOs?
A: Yes, we do benchmark, but we don’t copy everything wholesale. Even large SACCOs have their own internal challenges, so we pick what works and tailor it to our context.
Q: Have you identified a potential successor to lead Shuuku SACCO?
A: Succession is important. My strategy involves mentoring people, giving them responsibilities, and observing their attitude and commitment. I do have someone in mind, but I haven’t disclosed it to him yet.
Q: You recently held a press conference in Kampala opposing Bank of Uganda’s regulation of large SACCOs. Who attended, and what’s your stance?
A: The press conference at UCSCU headquarters was attended by representatives from UCSCU, AMFIU, WALIMU SACCOs, and our legal advisor. In 2024, these apex bodies formed a joint advocacy team, which I currently chair. Each institution took responsibility for a key topic—UCSCU was assigned regulation. So, our public position represents a unified stance, even when all members aren’t physically present.
Q: Why do you think the Bank of Uganda is keen to regulate large SACCOs?
A: BoU argues that it has a legal mandate to do so, a claim we are challenging. Their underlying reasons are best known to them.
Q: How damaging was the closure of the Cooperative Bank to Uganda’s cooperative movement?
A: The story of the Cooperative Bank’s closure is still unclear to me. Some reports suggest that Bank of Uganda shut down one Cooperative Bank but liquidated assets of a different one. Regardless, the closure denied cooperatives a chance to own a bank designed to meet their financial needs, and they lost billions in the process.
Q: What have you achieved personally as a result of your service?
A: I own property in Kampala, where my family lives, and more in Kashozi Division, Sheema District, where I’m involved in agriculture. My goal is to become a model coffee farmer in the district—I already have over 10 acres of coffee.
Socially, I’ve built strong networks locally, nationally, and internationally, especially in the financial inclusion space through cooperatives.
https://thecooperator.news/regulating-large-saccos-ucscu-drags-bou-to-court/
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