UCSCU urges stronger governance and technology adoption to strengthen SACCOs
KABALE, June 25, 2026 — The Board Chairperson of the Uganda Cooperative Savings and Credit Union Limited [ UCSCU ], Col. Allan Kitanda, has called for stronger governance systems, greater transparency, and accelerated adoption of modern technology to enhance the growth and sustainability of Savings and Credit Cooperative Organisations [SACCOs] across Uganda.
Speaking at the 5th Annual Western Region SACCO Convention held yesterday at White Horse Inn in Kabale town under the theme “The Future-Ready SACCO: Resilient, Innovative and Member-Centred”, Col. Kitanda said SACCOs continue to play a vital role in financial inclusion by bringing members closer to the financial system.
“SACCOs are steadily growing in membership and continue to play a central role in advancing financial inclusion,” he said, adding that members remain the foundation of every SACCO and must be protected through accountable leadership and transparent management of resources.
However, he raised concern over governance gaps in some institutions, warning that some leaders exploit members with low financial literacy. “Some SACCO leaders take advantage of members, especially those with limited financial literacy, to mismanage or exploit their savings,” he said.
Col. Kitanda also urged SACCOs to strengthen oversight mechanisms and expand youth participation, stressing that the inclusion of young people is critical to the future sustainability of the cooperative movement.
Stakeholders at the convention echoed similar concerns, calling for sector-wide transformation.
The Chief Executive Officer of Wazalendo Savings and Credit Cooperative Society, Brig. Gen. Yusuf Magero Buha, emphasised the need for SACCOs to embrace advanced technology to improve efficiency and safeguard members’ savings.
“Any SACCO that wants to thrive must put its members at the centre of its operations,” Brig. Gen. Buha said, noting that effective communication is key to building trust and engagement.
He also warned that reliance on outdated systems exposes institutions to cyber threats and weakens service delivery, adding that financial intelligence is essential in assessing creditworthiness and guiding lending decisions.
Rev. Canon Dr. Duncans Mugumya, Chairperson of Kibanga Peoples SACCO in Bushenyi district, observed that digital transformation has already reshaped financial service delivery, pointing to electronic banking and online platforms as key drivers of efficiency and expanded market access.
Meanwhile, Turyamureba Paul Kahingi, Board Chairperson of Kyamuhunga Peoples SACCO in Kyamuhunga Town Council, Bushenyi district, said evolving customer needs, particularly among young people, require full adoption of digital financial services alongside stronger cybersecurity systems to curb fraud risks.
The convention brought together SACCO leaders, regulators, professionals, and other stakeholders, who agreed that the future of cooperatives depends on innovation, strong leadership, and member-focused service delivery.
Participants at the convention underscored that as SACCOs continue to expand, the adoption of technology and strengthening of governance structures will be critical in ensuring financial stability, trust, and the long-term sustainability of Uganda’s cooperative movement.
As the apex body for SACCOs in Uganda, UCSCU continues to champion a sustainable SACCO movement in Uganda, through capacity building, knowledge sharing, and advocacy aimed at strengthening cooperative institutions nationwide.
The 2026 convention focused on building stronger, more resilient SACCOs through dialogue, experience sharing, and practical strategy development for the future of community finance in Western Uganda and beyond.
Written by Jane Elizabeth Umutangana
https://thecooperator.news/ucscu-let-down-as-ebo-sacco-opts-for-bou-regulation/
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