By Joseph Kiggundu
KAMPALA – The government has expressed concern over the declining state of teachers’ Savings and Credit Cooperative Organizations (SACCOs), with more than Shs11 billion in outstanding loans now at risk following the collapse of hundreds of societies across the country.
According to officials from the Ministry of Trade, Industry and Cooperatives, only 39 out of 385 registered teachers’ SACCOs remain active, while 346 have become dormant, significantly affecting access to affordable financial services for teachers.
The funds in question were disbursed through the Walimu Teachers’ Cooperative Savings and Credit Union, which has received a total of Shs27 billion in government funding aimed at strengthening financial inclusion among educators.
Speaking during the inauguration of a new Board of Directors for Walimu SACCO in Kampala, Commissioner for Cooperatives Policy and Development Robert Bariyo Barigye described the situation as a serious challenge that requires immediate action.
He noted that the low number of active teachers’ SACCOs highlights the need for stronger governance, improved accountability, and better management practices within cooperative institutions.
To address the issue, the Ministry has tasked the newly appointed board with recovering at least 80 percent of the outstanding Shs11 billion by March 2027, while also leading efforts to revive dormant SACCOs nationwide.
Officials attributed the collapse of many teachers’ SACCOs to poor management, weak loan recovery systems, inadequate oversight, and financial difficulties experienced by members.
The new Board Chairperson, Steven Olinga, pledged to prioritize the recovery of outstanding funds and restore confidence in the cooperative movement. He said the board would work towards revitalizing dormant SACCOs and ensuring teachers regain access to affordable and reliable financial services.
Meanwhile, Walimu SACCO General Manager Caroline Atai revealed plans to introduce digital solutions to improve loan monitoring, strengthen transparency, and enhance operational efficiency.
The Ministry stated that the performance of the new board will be evaluated based on progress in loan recovery, the revival of dormant SACCOs, and improvements in service delivery to teachers.
The developments have renewed attention on the challenges facing teachers’ cooperatives and the need to safeguard public investments intended to support the financial wellbeing of educators across Uganda.