Bank of Uganda gives SACCOs March 2027 licensing deadline

What the report says

The Bank of Uganda has told savings and credit cooperative societies that are still unlicensed to complete the licensing process by March 31, 2027, and said the deadline will not be extended. According to The Observer, the central bank is stepping up regulation of eligible SACCOs under a framework meant to improve oversight, protect members’ savings and support cheaper credit.

The warning was delivered by David Kalyango, the bank’s executive director for supervision and regulation, during a ceremony in which licences were handed to four SACCOs: CBS PEWOSA Nsindika Njake Eyeeterekera, Mateete, UNBS Staff Co-operative, and Kibaya Youth Development. The article says these approvals brought the total number of SACCOs licensed by the Bank of Uganda as registered societies to 10, while more than 35 other applications were still being reviewed.

The Observer reported that the licensing process is being carried out under Uganda’s microfinance deposit-taking laws and related regulations for registered societies. Bank officials said the aim is not to shut SACCOs down, but to help them transition from self-regulation to a supervised environment with clearer governance, accounting and reporting standards.

The bank also linked the move to broader financial inclusion goals. It said better-run SACCOs can serve households, farmers, traders and small businesses that struggle to access affordable loans, and may qualify for subsidized financing through government-backed credit facilities. The central bank urged SACCO leaders to strengthen boards, improve internal controls and retain some surpluses to expand lending capacity.