UCA welcomes BoU’s extension of licensing deadline for large SACCOs

 KAMPALA, March 9, 2026 — The Uganda Cooperative Alliance [ UCA ] has welcomed the decision by the Bank of Uganda [BoU] to extend the deadline for licensing large Savings and Credit Cooperative Organisations [SACCOs] to September 30, 2026, giving the institutions additional time to comply with regulatory requirements.

The earlier deadline had been set for March 31, 2026 under the Microfinance Deposit-Taking Institutions Act and the Microfinance Deposit-Taking Institutions [Registered Societies] Regulations, 2023.

In a statement issued on Friday, UCA said the extension follows sustained engagements between the cooperative movement, government and other key stakeholders regarding the implementation of licensing requirements for large SACCOs.

According to the alliance, leaders in the cooperative sector had raised concerns about the regulatory transition affecting SACCOs, noting that while the sector supports financial oversight and compliance, the licensing process should take into account the unique nature of cooperatives as member-owned financial institutions.

“Cooperatives mobilise and lend funds primarily among their members, which distinguishes them from other financial institutions,” the statement noted.

UCA said the concerns prompted engagements with Parliament and later a high-level meeting with President Yoweri Museveni, who acknowledged the role of the cooperative model in promoting financial inclusion and grassroots economic development.

During the discussions, cooperative leaders emphasised the need to harmonise the regulatory framework governing SACCOs with existing cooperative laws to avoid duplication of mandates and provide clarity for the sector.

Following the consultations, the President directed that the matter be reviewed and that more time be allowed for stakeholder engagement and policy alignment.

“The extension announced by the Bank of Uganda is therefore a welcome outcome of this constructive dialogue,” the statement said.

According to a notice issued by the central bank, the extended deadline will allow for further stakeholder consultations, continued sensitisation on regulatory oversight, and adequate preparation by eligible SACCOs to meet licensing requirements.

Financial service providers have also been advised to continue supporting SACCOs as they prepare for compliance.

UCA said the extension gives SACCOs across the country additional time to understand the regulatory framework, strengthen internal systems and prepare the documentation required for licensing.

The alliance reiterated that the cooperative movement is not opposed to regulation but supports frameworks that enhance transparency, protect members’ savings and strengthen institutional credibility.

However, UCA emphasised that such regulations must recognise the cooperative model and support the growth of SACCOs as key drivers of financial inclusion.

SACCOs play a significant role in Uganda’s financial sector by providing accessible financial services to millions of Ugandans, particularly in rural and underserved communities.

UCA commended the Government, BoU, Parliament and other stakeholders for engaging in dialogue on the matter, and pledged to continue working with regulators and policymakers to ensure that the final regulatory framework supports both financial stability and the growth of the cooperative movement.

The alliance also said it will continue mobilising and guiding SACCOs across the country to prepare for compliance during the extended licensing period, while advocating for a harmonised regulatory framework that safeguards the cooperative identity and promotes inclusive economic development.

In Uganda, large SACCOs are defined as those with voluntary savings exceeding Shs 1.5 billion and institutional capital of at least Shs 500 million, requiring regulation by the BoU. Over 90 such SACCOs have been identified, with notable examples including EBO SACCO, Kyazanga-Kwegata Microfinance Cooperative, Masindi District Farmers Association [MADFA] SACCO, and Wazalendo SACCO

While smaller SACCOs are regulated by the Microfinance Regulatory Department in the Finance ministry, large SACCOs are being transitioned to direct supervision by the BoU, supposedly to manage risks associated with their large deposit volumes. On the other hand, the Registrar of Cooperative Development in the Ministry of Trade, Industry and Cooperatives [MTIC], registers all cooperatives in Uganda.

https://thecooperator.news/ucscu-refutes-reports-on-sacco-registration-with-bank-of-uganda/

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