Uganda's savings and credit cooperatives (SACCOs) have been given more time to meet new licensing requirements after the Speaker of Parliament stepped in to resolve a standoff between the Bank of Uganda (BOU) and the cooperative movement.
The dispute followed a BOU directive requiring large SACCOs to apply for licences by 30 September or risk being cut off from the banking system, including mobile money. The Uganda Co-operative Savings and Credit Union (UCSCU) petitioned Parliament, leading to a meeting on 23 September with BOU Governor Michael Atingi-Ego, cooperative leaders and government officials.
UCSCU Chief Executive Sylvester Ndiroramukama said SACCOs are regulated under several different laws, creating confusion, and that many could not meet the deadline because licensing decisions need approval at their Annual General Meetings, usually held around March.
"It is not true that SACCOs do not want to be regulated. We actually want to be regulated, but we want regulation which is harmonised," he said.
Governor Atingi-Ego said the central bank was enforcing the law, warning that Uganda faces a Financial Action Task Force (FATF) evaluation from 2027. "We run a risk of this country going back to the grey list," he said.
Under the agreed roadmap, SACCOs making genuine efforts to apply by 31 March 2027 will be considered under phased compliance, with 30 June 2027 proposed as the final deadline. Speaker Jacob Marksons Oboth also directed the Ministry of Finance to draft an amendment creating a harmonised, SACCO-specific regulatory regime.
"When two laws conflict or contradict each other, you need a Speaker to speak to both sides so they can see the difference, and everyone is left happy," said Oboth.
