The Uganda Co-operative Savings and Credit Union (UCSCU), the umbrella body for Savings and Credit Cooperative Societies (SACCOs), has dismissed media reports claiming SACCOs must register with the Bank of Uganda (BoU), describing the directive as misleading and legally baseless.
Speaking during a media engagement in Kampala on Wednesday, UCSCU Chairperson Col Allan Kitanda Tom said the current regulatory environment remains conflicted, with overlapping laws creating confusion among SACCO stakeholders.
‘The confusion arises from inconsistencies between the Cooperative Societies Act, the Tier 4 Microfinance Institutions and Money Lenders Act, and the Microfinance Deposit-Taking Institutions (MDI) Act, all of which assign regulatory authority to different entities,’ Col Kitanda said.
He explained that SACCOs currently fall under the supervision of three bodies; the Ministry of Finance, which absorbed the functions of the dissolved Uganda Microfinance Regulatory Authority (UMRA); the Bank of Uganda, which seeks to regulate large SACCOs; and the Registrar of Cooperatives, who registers and supervises all SACCOs regardless of size.
The number of SACCOs in Uganda has surged to over 30,000, reflecting an increase of 26,034 between 2015 and March 2025, according to government data.
On Wednesday, Col Kitanda argued that Parliament’s 2022 amendment to the MDI Act removed provisions that would have placed large SACCOs under BoU supervision.
‘Parliament reversed its earlier position and deleted the proposed provisions for large SACCOs from the MDI Amendment Bill 2022. The Act was assented to by the President without any provisions for SACCOs. Therefore, the MDI Registered Societies Regulations issued afterward have no legal basis,’ he said.
UCSCU has filed a legal challenge (HCCS No. 0130 of 2024) at the High Court’s Civil Division to seek judicial clarity on the matter, which remains pending.
Col Kitanda emphasised that SACCOs are not opposed to prudential regulation, but are calling for a single, unified law and regulator to safeguard cooperative principles and protect members’ savings.
‘We want to preserve our cooperative identity and ensure SACCOs continue to grow under a clear, consistent, and fair legal environment. SACCOs remain legally registered and operational under the Cooperative Societies Act, and they should not be forced to register again with the Bank of Uganda,’ he said.
Outgoing UCSCU Chairperson Jalia Bintu Lukumu urged SACCOs and the public to disregard reports suggesting BoU is now the mandatory regulator.
‘Until Parliament enacts a single, harmonized law, SACCOs will continue functioning under the authority of the Registrar of Cooperatives,’ she said.
Johnbosco Atwijukire, General Manager of Kyamuhunga Peoples SACCO, said conflicting regulations have created uncertainty for SACCO operations, partnerships, and membership growth.
‘From what we have learnt from neighbouring countries where SACCOs are successful like in Kenya, they have independent authorities that regulate, supervise, and mandate the activities of SACCOs, and that’s what we are requesting for,’ he added.
The Bank of Uganda was not immediately available for comment when repeatedly contacted on Wednesday.