Transforming Lives in Western Uganda: The Rise of Kyamuhunga People’s SACCO from Humble Beginnings to a Multi-Billion-Shilling Enterprise
One of the SACCO’s most significant recent innovations is its green financing programme, launched in 2023 with technical and financial support from aBi Finance and FSD Uganda
BUSHENYI, June 4, 2026 – Over the past 26 years, Kyamuhunga People’s Savings and Credit Cooperative Society [KYAPS] Limited has evolved from a grassroots community initiative into a formidable financial institution, transforming the socio-economic landscape of Greater Bushenyi and the wider western Uganda region.
Established in 1998 by residents of Kyamuhunga Sub-county with just 15 founding members and an initial capital base of Shs 3 million, the SACCO has successfully bridged the financial inclusion gap for tens of thousands of rural households, widows and smallholder farmers who were historically excluded from mainstream banking services.
Today, KYAPS stands among the leading cooperative financial institutions in Uganda, serving about 60,000 members, total assets worth Shs 65 billion, savings of Shs 25 billion, share capital of Shs 12 billion and an active loan portfolio exceeding Shs 54 billion.
According to KYAPS General Manager John Bosco Atwijukire, the SACCO’s remarkable growth from a modest community initiative to a multi-billion-shilling institution is the result of professional management, strong governance and a highly committed membership.
Over nearly three decades, the institution has benefited from strategic support from development partners, including USAID’s Rural Savings Promotion and Enhancement of Enterprise Development programme Rural [SPEED], the Microfinance Support Centre, Financial Sector Deepening Uganda [FSD Uganda] and aBi Finance Limited. This support has enabled the SACCO to expand aggressively across western Uganda.
From its headquarters in Kyamuhunga, Bushenyi district, KYAPS now operates ten fully fledged branches located in Katerera [Rubirizi District], Rutokye and Kashenshero [Mitooma District], Bushenyi-Ishaka Municipality, Rubare [Ntungamo district], Kihihi [Kanungu district], Mwenge [Kyenjojo district], Biguli [Kamwenge district], Rwimi [Bunyangabo district], and Mbarara City. Additional branches in Ntungamo Town and Kyenjojo Town are set to open soon.
“When you compare Kyamuhunga of 1998 with what it is today, the transformation is remarkable,” Atwijukire said.
“Our members have utilised tailored credit facilities to invest in modern commercial and residential buildings, while an entire generation has accessed education through our specialised financial products. We offer a wide range of loans, including agricultural, business, emergency and boda-boda loans, alongside products designed specifically for women and young people who lack conventional collateral.
“Beyond financial services, we place great emphasis on corporate social responsibility. This year alone, we are sponsoring 17 vulnerable students through tertiary education bursaries, a programme that costs more than Shs 15 million annually. Many beneficiaries have gone on to become lawyers, medical doctors, teachers and accountants who otherwise would have been unable to access higher education.”
Driving climate-smart development
One of the SACCO’s most significant recent innovations is its green financing programme, launched in 2023 with technical and financial support from aBi Finance and FSD Uganda.
Through a subsidised credit facility carrying an annual interest rate of 14.8 per cent, KYAPS offers members lower-cost loans for environmentally sustainable enterprises. The rates are significantly below conventional commercial lending rates, which typically range between 1.5 and 2.8 per cent per month.
More than 300 members have already embraced the programme, investing in commercial forestry, organic farming, biogas systems, apiculture, fish farming and intensive mulching practices aimed at improving environmental sustainability and climate resilience.
KYAPS Board Chairman Paul Turyamureeba Kahiigi said the initiative is intended to secure both environmental sustainability and the institution’s long-term viability.
“Most of our international funding partners encourage us to align lending with climate change interventions,” Kahiigi explained.
“When a member presents an environmentally friendly project, we offer a reduced interest rate because it improves our performance rating with external financiers. At the same time, we are implementing measures to reduce paper usage across all our branches in order to minimise our carbon footprint.
“We are also encouraging agricultural borrowers, particularly tea farmers who recently experienced significant losses due to fluctuations in global tea prices, to diversify their investments. Dependence on a single enterprise exposes farmers to greater risk, whereas diversification creates more stable income streams and improves loan repayment capacity.”
A national model for cooperative growth
The SACCO’s success received national recognition in 2024 when the Registrar of Cooperatives ranked KYAPS as the fourth-best-performing SACCO in Uganda.
The recognition has transformed the institution into a national learning centre, where government agencies regularly send leaders of newly established Emyooga and Parish Development Model [PDM] SACCOs for operational training and benchmarking.
Its reputation has also extended beyond Uganda’s borders. Recently, the Ministry of Trade, Industry and Cooperatives selected KYAPS to host a high-level benchmarking delegation of cooperative leaders from Kenya.
Despite these achievements, both Kahiigi and Atwijukire expressed concern about regulatory inefficiencies affecting Uganda’s SACCO sector. They urged the government to establish a single regulatory authority to oversee cooperatives.
Currently, SACCOs are required to submit compliance reports to three separate institutions: the Bank of Uganda, the Uganda Microfinance Regulatory Authority [UMRA] and the Ministry of Trade, Industry and Cooperatives [MTIC].
Kahiigi argued that a unified regulator, modelled on Kenya’s SACCO Societies Regulatory Authority [SASRA], would streamline operations and unlock further growth for the sector.
“Kenyan SACCOs have grown so strong that some can provide liquidity support to commercial banks,” he noted. “Yet Uganda’s largest SACCOs remain constrained despite holding substantial capital. For example, Wazalendo SACCO alone has share capital exceeding Shs 250 billion.”
Transforming lives across Western Uganda
The true impact of KYAPS is reflected in the stories of its members.
Jean Nayebare, LC1 Chairperson of Butare Cell, where the SACCO headquarters is located, credited the institution with helping transform Kyamuhunga from a modest rural sub-county into a thriving town council characterised by vibrant commerce, modern buildings and growing vehicle ownership.
Agnes Tushemereirwe, a beneficiary of the SACCO’s 2017 bursary programme, said the support enabled her to complete professional studies in accounting and secure stable employment with a local non-governmental organisation.
For widows facing economic hardship, KYAPS has become an essential lifeline.
Sharon Muhumuza of Kizinda Town Council recalled being left financially stranded after the death of her husband in 2008.
A loan of Shs 1.5 million from the SACCO enabled her to expand her produce business, secure bulk supply contracts and acquire financial management skills. She was subsequently able to educate her three children and improve her family’s living standards.
In Mitooma district, fellow widow Cledius Buhumure used financing from the Kashenshero branch to establish a wholesale banana business that has since expanded into Kanungu District. The enterprise enabled her to construct a permanent home and begin planning for the purchase of a commercial cargo truck.
Meanwhile, Darious Musasizi Mwesigye, a forest farmer in Katanda Sub-county, Rubirizi District, utilised KYAPS financing to clear and plant more than 100 acres of land allocated by the National Forestry Authority [NFA]. Through technical linkages facilitated by the SACCO, he has expanded into international carbon-credit trading, creating an additional revenue stream from forest conservation.
In Kyegegwa District, banana trader Jonan Byagageire used a KYAPS home improvement loan to build a house before obtaining a boda-boda loan that enabled him to transport produce to larger markets in Rwamwanja.
According to Byagageire, the establishment of the Biguli branch broke the dominance of informal money lenders who often exploited struggling rural traders through excessive interest rates and harsh recovery methods.
Measuring impact and planning for the future
To document these achievements and improve service delivery, KYAPS has commissioned Unique International Consultants to conduct an independent customer and employee satisfaction survey across its operational area.
Kahiigi said the study will generate evidence-based insights into the SACCO’s impact on household incomes and living standards over the past 26 years. The findings will guide the development of new financial products while strengthening accountability and customer satisfaction.
The documentation exercise comes at a time when Uganda has suspended national celebrations for the 2026 International Day of Cooperatives, which was scheduled for July 4, under the global theme, “Cooperatives for a Peaceful World.”
The decision, jointly announced by MTIC and the Uganda Cooperative Alliance [UCA], was taken as a public health precaution amid efforts to monitor and contain an Ebola outbreak that also led to the suspension of major public gatherings, including this year’s Martyrs Day celebrations.
Health authorities in Uganda and the neighbouring Democratic Republic of Congo have reported a combined 575 suspected cases, 51 confirmed cases and 148 suspected deaths, including two cross-border cases detected in Uganda.
Although no further transmission has been reported, the UCA has urged Uganda’s estimated 15 million cooperators, operating through more than 47,000 registered cooperatives, to maintain public health measures while continuing engagement through smaller, community-based activities.
The story of KYAPS continues. It employs more than 120 staff and continues to play a pivotal role in supporting livelihoods, entrepreneurship and economic development across Western Uganda.
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