Large SACCOs are required to comply with BoU regulations
The regulations apply to large SACCOs with voluntary savings exceeding Shs1.5 billion and institutional capital of at least Shs500 million, including retained earnings and reserves.
The government has emphasized the need for large Savings and Credit Cooperative Organisations (SACCOs) to comply with Bank of Uganda (BoU) regulations aimed at strengthening governance, protecting members’ savings and improving financial stability.
The Minister of State for Microfinance, Hon. Haruna Kasolo together with officials from the Financial Services Department at the Ministry of Finance, Planning and Economic Development, met with a team from the Bank of Uganda led by Director of Non-Bank Financial Institutions (NBFI) Mackay Aomu to discuss progress in implementing the Microfinance Deposit-Taking Institutions Amendment (Registered Societies) Regulations, 2023.
The regulations apply to large SACCOs with voluntary savings exceeding Shs1.5 billion and institutional capital of at least Shs500 million, including retained earnings and reserves.
According to the Bank of Uganda, only seven SACCOs have so far received full licences, while 15 others are still undergoing the licensing process.
The initiative is intended to improve corporate governance within SACCOs, safeguard members’ deposits through the Deposit Protection Fund, and reduce the cost of credit through the centralisation of credit information under the Credit Reference Bureau.
The Minister pledged government support towards the implementation of the regulations, saying the move would help strengthen Uganda’s financial sector and promote financial inclusion.
The initiative aligns with government efforts to expand access to affordable financial services as part of the country’s broader economic development agenda.
