The Ministry of Finance, Planning and Economic Development has formally handed over Uganda’s microfinance portfolio to State Minister for Finance, Shartsi Kuteesa Musherure, as the government seeks to consolidate gains in financial inclusion and expand access to affordable credit.
The handover was conducted during a top management meeting chaired by Finance Minister Henry Musasizi, with outgoing minister Haruna Kasolo transferring responsibility for the microfinance portfolio to Musherure.
Kasolo leaves the portfolio after overseeing a period of expansion and regulatory reforms in Uganda’s microfinance sector.
During his tenure, the number of licensed Tier IV institutions and moneylenders rose from 901 to 1,809, while financial inclusion increased to 81 per cent and formal financial inclusion reached 84 per cent.
Kasolo also highlighted increased access to affordable financing through the Microfinance Support Centre. According to the figures presented during the handover, 7.6 million beneficiaries accessed affordable credit, while Shs539 billion was mobilised in savings.
A total of 2,502 projects were financed, with about 70 per cent of the funding directed towards agricultural value chains, supporting efforts to expand financing for productive economic activities.
Government-backed programmes also recorded significant growth during the period.
Emyooga expanded to 7,148 SACCOs with 2.48 million members, while the Parish Development Model (PDM) was capitalised at Shs3.788 trillion and reached more than 3.6 million households.
Kasolo said the period also saw stronger regulation and oversight of Tier IV institutions and SACCOs, alongside measures aimed at improving consumer protection.
The reforms were intended to strengthen confidence in the microfinance industry while ensuring that financial services reach households and small enterprises that have traditionally faced barriers to formal finance.
Receiving the portfolio, Musherure pledged to build on the progress made, with a particular focus on strengthening regulation, expanding affordable credit and savings, and increasing financial inclusion among women, youth, farmers and small businesses.
“The new chapter is clear: consolidate the gains, strengthen accountability and ensure that microfinance puts more money, opportunity and economic power in the hands of ordinary Ugandans,” Musherure said.
The transition comes as the government continues to position financial inclusion as a key component of its broader economic transformation agenda, with microfinance institutions, SACCOs and community-based financing schemes expected to play a central role in moving more households into the formal economy.
Musherure will now oversee the portfolio as the ministry seeks to deepen access to finance while maintaining stronger safeguards for borrowers, savers and members of community financial institutions.
