The Bank of Uganda (BoU) has expanded its direct oversight of Uganda’s cooperative financial sector after licensing Share An Opportunity SACCO in Zirobwe and Kihondo Tukwatanize SACCO in Fort Portal, raising the number of large Savings and Credit Cooperative Organisations (SACCOs) under its supervision to six.
The licences were presented on Thursday at the Bank of Uganda headquarters by the Director of Non-Bank Financial Institutions, Mr. Mackay Aomu, who represented the Executive Director for Supervision and Regulation.
The move marks another step in strengthening Uganda’s financial system by bringing larger community-based financial institutions under enhanced regulatory oversight, a measure aimed at improving governance, protecting members’ savings and expanding access to affordable financial services.
Speaking during the licensing ceremony, Mr. Aomu urged the newly licensed SACCOs to remain anchored in the communities they serve while building institutions founded on integrity, trust and accountability.
He stressed that sustainable growth in the cooperative sector depends on strong governance structures, effective internal controls and prudent financial management capable of safeguarding members’ resources.
Mr. Aomu also called on the SACCOs to prioritise the protection of members’ data as financial services become increasingly digitised, while integrating environmental, social and governance (ESG) principles into their operations to ensure long-term sustainability.
He noted that well-regulated and professionally managed SACCOs are critical to broadening financial inclusion, particularly in underserved communities where access to conventional banking services remains limited.
“The strength of Uganda’s financial system depends not only on commercial banks but also on resilient and well-governed cooperative institutions that provide affordable financial services to ordinary citizens,” Mr. Aomu said.
The licensing of Share An Opportunity SACCO and Kihondo Tukwatanize SACCO reflects the central bank’s continued implementation of reforms aimed at enhancing confidence in the SACCO sector through stronger supervision and improved institutional standards.
Industry observers say the expanded regulatory framework is expected to enhance transparency, strengthen risk management and increase public confidence in cooperative financial institutions, enabling them to mobilise more savings and extend greater access to credit for households, farmers, small businesses and entrepreneurs.
The licensing ceremony was attended by board chairpersons and senior executives from the two SACCOs, alongside officials from the Bank of Uganda’s Supervision Directorate, underscoring the collaborative effort to build a more resilient and inclusive financial sector.
As Uganda advances its financial inclusion agenda, the central bank views stronger regulation of large SACCOs as an important pillar in promoting sustainable economic growth, expanding access to finance and supporting the country’s broader socio-economic transformation.
