The Uganda Co-operative Savings and Credit Union Limited (UCSCU) has dismissed as misleading and false a media report claiming that Savings and Credit Cooperative Organisations (SACCOs) have been ordered to register with the Bank of Uganda (BoU).
In a statement dated November 5, 2025, UCSCU Chief Executive Officer Dr. Sylvester Ndiroramukama said the New Vision headline published on November 4 titled “SACCOs Ordered to Register with BoU” contained “material falsehoods” and created unnecessary anxiety among SACCO members and the general public.
Dr. Ndiroramukama explained that the SACCO sector is currently affected by conflicting legal frameworks, arising from inconsistencies between the Cooperative Societies Act, the Tier 4 Microfinance Institutions and Money Lenders Act, and the Microfinance Deposit-Taking Institutions (MDI) Act.
“The effect is that we have three regulators for the SACCO sector — the Ministry of Finance, which took over functions of the dissolved UMRA; the Bank of Uganda, which seeks to regulate large SACCOs; and the Registrar of Cooperatives, who registers and regulates all SACCOs under the Cooperative Societies Act,” he said.
He further clarified that while the Tier 4 Act of 2016 had initially placed large SACCOs under BoU supervision, Parliament later reversed this position by deleting the related provisions in the MDI (Amendment) Bill of 2022. The MDI (Amendment) Act, later assented to by President Museveni, excluded SACCOs entirely, making the subsequent MDI (Registered Societies) Regulations “without legal basis.”
To resolve the regulatory confusion, UCSCU has filed a case (HCCS No. 0130 of 2024) against the Bank of Uganda, now pending before the High Court Civil Division, seeking legal interpretation on SACCO oversight.
Dr. Ndiroramukama reassured SACCO members that they continue to operate legally under the Cooperative Societies Act and remain registered and regulated by the Registrar of Cooperatives.
“The Union and SACCOs do not fear prudential regulation or supervision, but we demand a streamlined regulatory framework with a single regulator. This will help preserve cooperative principles and protect the achievements made as one family,” he added.
He urged SACCOs and the public to disregard the newspaper headline, emphasizing that ongoing efforts to harmonize laws are being led by the Ministry of Finance, following advice from the Attorney General.
The government is currently harmonizing the regulatory framework for SACCOs as part of the broader rationalization process of public agencies, which saw the dissolution of the Uganda Microfinance Regulatory Authority (UMRA) and transfer of its functions to the Ministry of Finance.
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