Parliament Sacco posts Shs9.6 billion in growth

The Speaker of Parliament, Anita Among, has hailed the Uganda Parliamentary Sacco for its continuous expansion following a Shs 9.6 billion growth in 2024, which is a 15 percent increase from last year’s Shs8.3 billion.

In a speech read on her behalf by the Minister of State for Trade, Industry and Cooperatives, Hon Frederick Ngobi, Speaker Among said the Sacco’s growth is a welcome development, as it shields MPs and staff from predatory financial institutions with exorbitant interest rates and harsh terms.

“I am cognizant of the importance of this Sacco to its members. It is in the interest of the leadership of Parliament that this Sacco becomes the first and last resort for affordable and readily available capital for its members, instead of relying on exorbitant and exploitative loan sharks on the street,” said Among, during the Sacco’s 20th Annual General Meeting held at Parliament on Friday, 13 September 2024.

The Speaker also reported the impending success of efforts to have the Sacco compensated for its 100 acres of land in Mityana, which was compulsorily acquired by the Ministry of Defence and Veteran Affairs under the Land Acquisition Act Cap 235.

“I know that despite the success achieved there have been challenges, in relation to compensation for land comprised of plot 21, 25, 26 and plot 107 which was compulsorily acquired by UPDF in October 2022. Both administrative and political efforts are being put in place to ensure that through relevant government bodies this compensation is fulfilled,” said Among.

She urged the Sacco management to be innovative in developing new products and efficient delivery mechanism such as timely dispatch of loans, favorable savings, loan conditions and acceptance of online deposits.

Minister Ngobi on his part noted that he was aware of the challenges Saccos are facing due to multiple and uncoordinated regulatory bodies, proposing that there should be a single regulator.

The Chairperson of the Sacco Board, Hon Robert Migadde (NRM, Buvuma Islands County), said he plans to introduce an amendment in the near future to put right the regulation of Saccos which he said have fallen into confusion due to over regulation.

“Bank of Uganda requires us to file with them, so does the Ministry of Tourism, Trade and Industry and the Uganda Retirement Benefits Regulatory Authority. Saccos are wondering where to go, with time we hope to come with an amendment such that we streamline the Sacco movement,” he said.

He informed members that a court ruling on whether the earnings from Sacco business should be taxed was concluded and that currently both members’ savings and earnings from investments are tax exempt.

As a result, Migadde said a total of Shs 514 million which was meant to be remitted to the Uganda Revenue Authority (URA) has been paid back to members.

The Chief Executive Officer of the Sacco, Mr Methods Mureebe, said the investments in unit trusts and earnings from fixed interests throughout the financial year were the game changers for the aforementioned 15 percent increase in gross income.

Mr Mureebe added that the institution is celebrating growth in total assets from Shs 67.4 billion in 2023 to Shs 75.9 billion in the 2024 financial year representing 13 percent increase.

Mr Mureebe also reported a 36 per cent increase in the number of savers.

“Regarding interest we pay to you on your Sacco savings, the previous year we paid Shs 3.4 billion, for 2024 we paid Shs 4.7 billion to savers, which was due to big increase in members savings,” Mureebe said.

The leadership recognized outstanding contributors who they said make their work seamless.

MP Robert Kasolo (NRM, Iki-Iki Country) emerged the best borrower, and was recognized for paying back loans promptly.

The Minister of Lands, Housing and Urban Planning, Hon. Judith Nabakooba was awarded the best shareholder while MP Fredrick Angura (NRM, Tororo County South) Angura was honored as the best saver.