State House warns Skilling Hub graduates against misusing loans as President Museveni plans to increase SACCO funding

What the report says

State House Comptroller Jane Barekye has warned beneficiaries of the Presidential Industrial Skilling Hubs to use government start-up loans for productive work, saying President Yoweri Kaguta Museveni may increase support to graduates’ SACCOs only if the current revolving funds are handled responsibly. Watchdog Uganda reported that she cautioned against spending the money on alcohol, bride price and other non-business uses, and urged graduates to first build their enterprises before using profits for personal needs.

Barekye made the remarks during a stakeholders’ meeting at the Tooro Zonal Presidential Industrial Skilling Hub in Kyenjojo District on Tuesday, August 18, 2026. The meeting brought together State House officials, local leaders, SACCO executives and beneficiaries to review the skilling programme, the revolving fund and the model farm linked to the hub, which serves several districts in western Uganda. She said the Shs50 million allocated to each district SACCO was intended as a pilot to help graduates turn vocational training into income-generating businesses.

According to the report, State House is also tightening oversight, including by deploying a finance manager to track loan use. Local SACCO leaders raised concerns that some graduates cannot access funds because they lack national IDs, while asking for some loan conditions to be reviewed. Beneficiaries at the meeting described the programme as life-changing, saying the training and capital had helped them start tailoring, carpentry and other small businesses.

The broader context is Uganda’s effort to link vocational skilling with access to startup capital and local enterprise growth. State House officials also encouraged district leaders to support graduates through contracts, supervision and practical follow-up so the programme remains sustainable.