Kampala, Uganda | The umbrella body for Savings and Credit Cooperative Organisations (SACCOs), the Uganda Co‑operative Savings and Credit Union (UCSCU), has publicly rejected recent media reports claiming that SACCOs are being required to register with the Bank of Uganda (BoU). UCSCU’s officials describe the directive as both “misleading and legally baseless,” citing conflicting regulatory frameworks that currently govern SACCO oversight.
At a press briefing in Kampala on Wednesday, UCSCU Chairperson Col Allan Kitanda Tom clarified that SACCOs continue to be legally registered and supervised under the Cooperative Societies Act via the Registrar of Cooperatives and other bodies not automatically by the Bank of Uganda. He noted that earlier efforts to shift large SACCO regulation to BoU were removed in parliament’s 2022 amendment of the Microfinance Deposit‑Taking Institutions Act, making automatic registration with BoU invalid.
UCSCU pointed to three overlapping regulatory authorities currently involved: the Registrar of Cooperatives (under the Ministry of Trade, Industry & Cooperatives), the Ministry of Finance (which absorbed the dissolved Uganda Microfinance Regulatory Authority), and the Bank of Uganda (which oversees large deposit‑taking SACCOs under new regulations). This multiple oversight has caused “confusion among SACCO stakeholders,” according to officials.
The union has filed a legal challenge (HCCS No. 0130 of 2024) at the High Court to seek clarity on the issue. UCSCU argues that any regulatory move should be based on a single, harmonised law and regulator to preserve the cooperative identity and protect members’ savings. “SACCOs are not opposed to prudential regulation,” stated Kitanda, “but we must operate under a clear, consistent and fair legal environment.”
From 2015 to March 2025, the number of SACCOs in Uganda surged by 26,034, bringing the overall count to over 30,000 highlighting the sector’s rapid growth and the urgency of regulatory clarity. Currently, the Bank of Uganda’s draft guidelines suggest that SACCOs with voluntary savings above Shs 1.5 billion and institutional capital exceeding Shs 500 million could fall under BoU supervision, pending full enactment of regulations.
As the regulatory debate continues, UCSCU has advised SACCOs and the public to disregard headlines declaring mandatory BoU registration until Parliament enacts a harmonised law. They emphasise that operations remain valid under the existing Cooperative Societies Act and regulatory oversight of the Registrar of Cooperatives.
This clarification comes at a critical time for Uganda’s cooperative sector, where growth is rapid, financial inclusion efforts are advancing, and members’ trust must be safeguarded through stable, transparent governance frameworks.