KAMPALA – The Bank of Uganda has introduced a licensing system for large Savings and Credit Cooperatives to protect members’ savings, promote transparency, and ensure sustainable growth. A SACCO is a registered society under the Cooperative Societies Act, where members pool savings and access financial services like credit.

To be licensed, SACCOs must meet specific financial thresholds, including voluntary savings above 1.5 billion Ugandan shillings and institutional capital above 500 million shillings. The regulation aims to enhance financial stability in Uganda’s SACCO sector.

Large SACCOs can apply for a license by obtaining registration from the Registrar of Cooperatives and submitting an application to the Bank of Uganda with required documents. Operating without a license is illegal and may lead to legal penalties.

The evaluation of license applications will be completed within six months after receiving a complete set of information. Regulated SACCOs will benefit from protection of members’ savings, access to additional funding opportunities, stronger governance, and improved financial services.

To ensure compliance, SACCOs must maintain accurate financial records, train directors and staff on good governance, and follow ethical lending practices. The Bank of Uganda is working with government ministries and agencies to support large SACCOs.

The licensing fees include an application processing fee of 100,000 shillings, a one-time license fee of 500,000 shillings, and an annual renewal fee of 500,000 shillings. Applications should be submitted to the Non-Bank Financial Institutions Department at the Bank of Uganda.

For more information, visit the Bank of Uganda’s website. The new licensing system is expected to promote transparency and stability in Uganda’s SACCO sector. Large SACCOs are encouraged to apply for licenses to ensure compliance and access benefits.