The government has tasked the newly inaugurated board of directors of the Walimu Co-operative Union Ltd with recovering more than Shs11 billion in defaulted loans.
The union, which is an umbrella organisation for teachers’ savings and credit cooperative organisations (Saccos), has also been directed to revive hundreds of dormant Saccos across Uganda.
The Ministry of Trade, Industry, and Cooperatives, which injected Shs27 billion into the union to bolster teachers’ financial well-being, is demanding greater accountability.
Officials revealed that Shs11 billion of public funds loaned to teachers nationwide have not been repaid, severely crippling Walimu’s capacity to promote financial inclusion.
The new board has until March 31, 2027, to recover at least 80 percent of the outstanding loan portfolio. This is part of a broader government strategy to restore confidence in the teachers’ cooperative movement.
Speaking during the board’s inauguration in Kampala, Mr Robert Bariyo Barigye, the commissioner for cooperatives policy and development at the Ministry of Trade, emphasised the urgency of structural reforms.
”The board has been tasked with strengthening supervision, improving governance, and ensuring recovery of the outstanding funds lost through poorly managed Saccos lending,” Mr Barigye said.
He further exposed the systemic rot within the sector, revealing that a staggering 346 teachers’ Saccos have collapsed or become inactive.
”Only 39 out of the 385 registered teachers’ Saccos are currently active. This is a wake-up call for stronger monitoring and better leadership within the cooperative movement,” he added.
Historically, teachers’ Saccos in Uganda have struggled with weak managerial oversight, political interference, and a poor loan repayment culture among members, many of whom cite low salaries and economic hardships as reasons for not repaying loans.
The newly inaugurated Board chairperson, Mr Steven Olinga, acknowledged the high stakes and pledged to clean up the union’s image.
”We accept this challenge with full commitment. Our priority will be to restore trust among teachers, revive dormant Saccos, and ensure public funds injected into the sector deliver value to members,” Mr Olinga said.
The Walimu Sacco General Manager, Ms Caroline Atai, urged the incoming leadership to deploy modern tracking tools to curb future losses.
She urged the board to deliver measurable results by digitising financial systems and introducing robust vetting measures to minimise future defaults.
According to the ministry, the new board’s success will be strictly measured by the volume of funds recovered, the number of defunct Saccos brought back to life, and tangible improvements in financial service delivery to teachers across the country.