Gillian Twesigye, the Kamwenge District Commercial Officer, notes that while compiling the report, they discovered that poverty and incompetent leaders were among the major causes for the collapse of the Saccos.
The collapse of 13
Savings and Credit Cooperative Organizations –Saccos in Kamwenge and Kitagwenda
has raised fears among district authorities over the future of Saccos there.
According to Kamwenge District Status report for the 2018/2019 financial year,
13 Saccos have collapsed in the last ten years. They are Businge
Saaco, Ihunga Sacco, Shores of Lake George Saaco, Kiziba Sacco, Kabuye Sacco,
Kamwenge Volunteers Sacco, Kabambiro Sacco, Kamwenge Lay Catholic Development
Sacco, Busiriba United Sacco, Biguli-bwiza Sacco, Bisozi Sacco, East Rwenzori
Diocese Sacco, Kamwenge Workers Sacco.
Gillian Twesigye, the Kamwenge District Commercial Officer, notes that while
compiling the report, they discovered that poverty and incompetent leaders were
among the major causes for the collapse of the Saccos. On poverty, she notes that most Saccos require the members to have saved a lot
of money before accessing loans, which has seen many, quit and discouraged
elaborates that these cooperatives are managed by committees that are only
voted during general meetings. She says the elected
leaders normally lack the knowledge of managing Saccos and depend on untrustworthy
staff who embezzle member’s deposits.
//Cue in: “Because a Sacco…
Cue out… elect honest leaders.”//
The Commercial officer is worried that with the rate at, which the Saccos are
collapsing, many people may remain poor in the district if no solution is found
to keep the Saccos alive.
Irene Murungi, a
resident of Kamwenge town notes that with the Saccos collapsing, people are
likely to run to money lenders whom she, says are worse than banks because they
over charge interest on loans.
According to Kasemire, there is urgent need to rejuvenate the failed Saccos or else
many people will suffer and even lose their assets in search of financial
services that they are meant to offer.
James Barugahare, also a resident in the town, agrees with Kasemire, saying the
commercial officer should ensure capacity building for the Sacco leaders as a
way of minimizing on chances of their collapse.
Efforts to speak to some of the members of the affected Saccos have been futile
as they have since disintegrated without a trace.
Kasemire, the Cashier of Kamwenge Zibumbe Sacco, which had collapsed in 2017
but resumed operations, says the cooperatives can only be sustained if all
board members and staff are not members.
She explains that when the Sacco workers are at the same time members, they
start taking loans and bringing them back without interest because no one is
supervising them. She advises all Saccos to establish Internal Audit Committees
whose task should be to regularly audit the financial institutions to avoid
The Kamwenge District LC V chairman, Aggrey Natuhamya, calls upon the
Ministries of Planning, Finance and Economic Development and Trade Industry and
Cooperatives to expedite the process of Strengthening Saccos through the Project
for Financial Inclusion in Rural Areas- PROFIRA.