Published on 13/01/2025
A fight against savings group money heists, Uganda Cooperative Alliance (UCA) urges all savings groups and SACCOs to officially register before operations. This follows a shocking Kubiri incident, where a treasurer vanished with Shs12m, devastating 70 community members.
According to Ms Mercy Leko, the Public Relations Officer of UCA, registering with the Ministry of Finance Planning and Economic Development, Ministry of Trade Industries and Cooperatives and Uganda Registration Service Bureau (URSB) is crucial for the protection of members’ funds.
“If a member from an unregistered savings group fails to pay back a loan or steals the group’s money, there is no law to convict them,” she warned.
Leko emphasised that registration guarantees legal protection and financial security for members. “The Tier Four Microfinance Institutions and Moneylenders Act 2016 provides for the registration of savings groups. If you’re not registered and loaning out money, you’re operating illegally,” she explained.
To avoid incidents like the one in Kubiri, Leko advised people to follow online platforms for registration. “It’s better for groups to be registered from the community setting. Registration allows you to open a bank account, sign a group resolution with strict rules, and ensures that no one withdraws money arbitrarily,” she said.
The incident in Kubiri, which occurred on December 18, 2024, resulted in the loss of Shs12m and the destruction of property worth millions. The principal of Makerere Business Training Centre, Mr Geoffrey Nuwagaba, lamented the incident, saying, “We had closed for the holiday, but now we’ll incur additional costs to repair the damages.”
Kampala metropolitan police spokesperson Patrick Onyango confirmed that the police are investigating the incident and have released the Sacco treasurer, Ms Ruth Nakakawa, due to lack of evidence linking her to the arson case.
“n December 18 2024, we arrested Nakakawa, but we later released her after finding she was innocent; she had no connection with the arson case. We are still investigating members behind setting that fire; we are also investigating matters of Sacco money.”
