UCSCU’s finance pool grows to Shs 6bln in two years

KAMPALA, September 29, 2025 — The Uganda Credit and Savings Cooperative Union [UCSCU] has announced that its Central Finance Facility [CFF] has grown to a savings portfolio of Shs 6 billion in just two years.

The Central Finance Facility is a collective fund where Savings and Credit Cooperative Organisations [SACCOs], under their umbrella body UCSCU, pool financial resources to help address liquidity challenges within the cooperative movement.

Established in 2023 following a resolution at UCSCU’s Annual General Meeting, the facility was introduced to provide a sustainable, cooperative alternative to high-interest, exploitative sources of credit.

Speaking to theCooperator News recently in Kampala, Dr Sylvester Ndiroramukama, CEO of UCSCU, said the fund has been well received by member SACCOs, with many actively committing resources to support one another.

“We have reached a savings portfolio of at least Shs 6 billion over the past two years, and we expect to grow even further,” Dr Ndiroramukama said.

He noted that the facility now has at least 343 active member SACCOs, most of whom are making regular contributions to the fund while also accessing loans to stabilise and expand their operations.

“Many SACCOs have embraced the facility. Those borrowing have increased, and we encourage more to join the pool to help build resilience in the sector,” he added.

The CFF was created in response to a wave of SACCO failures, particularly in rural areas, largely attributed to poor liquidity management and administrative weaknesses. The facility provides financing for programme development, financial recovery, management training, and also serves as a stabilisation fund for distressed cooperatives.

In addition, the fund supports SACCOs that are pursuing innovative projects, particularly those aligned with green financing and sustainable economic models.

Call for extension of 10-year tax holiday for cooperatives

Dr Ndiroramukama also urged the government to consider extending the 10-year tax holiday granted to cooperatives in 2017, which is set to expire in 2027. He argued that extending the exemption is critical for the growth and consolidation of newly formed SACCOs, especially those under government programmes such as the Parish Development Model [PDM] and Emyooga.

“Let the government extend the tax holiday to give SACCOs under Emyooga and PDM more time to stabilise and build strong capital bases before being taxed,” he said.

According to the Ministry of Finance, Planning and Economic Development, over 30,000 SACCOs have been formed under these government initiatives, aimed at deepening financial inclusion and promoting economic self-reliance at the grassroots.

Ndiroramukama explained that an extended tax exemption would give SACCOs the breathing room to grow their capital, expand their loan portfolios, improve service delivery, and develop innovative financial products tailored to members’ needs.

He added that the extra time would also allow cooperatives to refine their governance structures and build a more resilient and independent financial ecosystem within the country.

While discussions between the government and the cooperative sector on the matter are ongoing, he acknowledged that stronger justifications and lobbying efforts will be needed to secure a favourable review.

“We are still engaging policymakers, and the cooperative movement must present compelling arguments to justify the need for this extension,” he said.

https://thecooperator.news/ucscu-let-down-as-ebo-sacco-opts-for-bou-regulation/

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