The Uganda Cooperative Savings and Credit Union (UCSCU) reported a 12% rise in members’ deposits and expanded its Central Finance Facility (CFF) loan portfolio during the 2025/26 financial year, despite recording a Sh2.05 million deficit. These figures were disclosed at the union’s 51st Annual General Meeting in Maganjo, Kampala, on Friday. Deposits increased from Sh1.36 billion in June 2025 to Sh1.52 billion by June 2026, while the CFF’s loan portfolio grew from Sh1.33 billion to Sh1.69 billion, reflecting enhanced financing for cooperative societies and Saccos. However, UCSCU’s revenue fell 18% to Sh1.052 billion, down from Sh1.286 billion in the prior fiscal year, contributing to the deficit after a Sh56 million surplus in 2024/25.
UCSCU’s operational efficiency improved slightly, with expenditure dropping from Sh1.60 billion to Sh1.064 billion and operational self-sufficiency rising to 92% from 91%. The union’s share capital also increased by 2.1% to Sh490.05 million. UCSCU Board Chairperson Col. Allan Tom Kitanda emphasized the organization’s commitment to institutional sustainability, governance, and strategic partnerships, citing the upcoming 2027–2032 Strategic Plan as a roadmap for actionable initiatives. CEO Dr Silvester Ndiroramukama highlighted digital transformation as a priority, including modernizing financial systems and automating reporting to enhance transparency and efficiency.
Minister of State for Cooperatives Alero Tom Aza urged Saccos to prioritize professional management, governance, and digital adoption to drive Uganda’s economic growth. He criticized the sector’s reliance on consumption-driven borrowing, advocating for financing that supports income-generating activities and entrepreneurship. Aza proposed establishing a cooperative bank to provide affordable loans and a deposit protection fund to secure members’ savings. He also identified governance gaps, weak loan recovery systems, and leadership succession as critical challenges requiring urgent attention.
UCSCU’s growth in deposits and lending underscores its role in strengthening the cooperative sector, but officials acknowledge the need for systemic reforms. The union’s efforts align with government initiatives to modernize Sacco operations and ensure financial inclusion. As the sector expands, stakeholders emphasize the importance of balancing growth with accountability, transparency, and member-centric policies to sustain long-term impact.
The interplay between UCSCU’s financial performance and policy directives highlights the evolving landscape of Uganda’s cooperative movement. With increased funding and strategic focus, the sector aims to address existing vulnerabilities while capitalizing on opportunities to foster economic resilience and inclusive development.