Kabarole: Kitojo Care SACCO holds first AGM after COVID-19 setback

Kitojo Care SACCO in Kabarole district has held its Annual General Meeting (AGM) this week, after missing out on holding one in 2020.

While cooperatives are required by law to hold an AGM every year, Kitojo Care SACCO, like many others countrywide, was unable to fulfill this obligation last year due to the COVID-19 pandemic that resulted in a temporary suspension of all manner of public gatherings.

Moreover, the SACCO saw its savings and loan portfolios take a hit as most of its members were constrained in conducting their business as a result of restrictions imposed by the government to limit the spread of the pandemic.

“Last year was a very hard one; the majority of our members are Boda Boda riders and others work at tour sites which were not working during the lockdown, so most of the businesses were on standstill. This affected our savings, loan repayment, and loan portfolio,” said Fortunate Kusemererwa, the SACCO’s Manager.

Consequently, he revealed, by year’s end the loan repayment rate had dropped from 92 to 85 percent, and the loan portfolio reduced from Shs 634m to Shs 464m

Kusemererwa said that Kitojo Care SACCO, which was started in 2007 with the aim of increasing members’ household incomes and improve on their saving culture, has since last year been faced by the challenge of the majority of its members being dormant, “to the extent that they cannot even afford to save Shs 10,000 per month.”

Taking a toll

The slowdown in the SACCO’s momentum has taken its toll on some of the developmental projects that it had recently undertaken.

For instance, Kusemererwa disclosed that the SACCO had in 2019 embarked on a project to construct its own office premises after squatting for several years at those of Kitojo Integrated Development Association (KIDA), its mother organization.

“KIDA has been hosting us for all these years, but in 2019, we decided to start constructing our own offices because members have since increased and cannot fit in the little space we are currently occupying,” he said.

However, due to the financial difficulties from the last year, they have not been able to continue with construction works.

“We had hoped to complete our office last year, but due to the lockdown, we had to halt it. Savings have drastically reduced, loan recovery is still poor and our members no longer take loans,” he explained.

AGM resolutions

Kusemererwa said this year’s AGM resolved that each member should contribute Shs 1,500 per month towards the completion of their office block, which he believes is the only option that will save them.

The Kabarole District Commercial Officer (DCO), John Kabango, who attended the AGM, advised members to reacquaint themselves with the reasons why they joined cooperatives in the first place so that they can enjoy the most benefits from them.

“Some people just join SACCOs to borrow money and run away without paying back. You need to know that these SACCOs are voluntary and are meant to help people improve their standard of living,” Kabango said.

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Kabarole: Kitojo Care SACCO holds first AGM after COVID-19 setback

Kitojo Care SACCO in Kabarole district has held its Annual General Meeting (AGM) this week, after missing out on holding one in 2020.

While cooperatives are required by law to hold an AGM every year, Kitojo Care SACCO, like many others countrywide, was unable to fulfill this obligation last year due to the COVID-19 pandemic that resulted in a temporary suspension of all manner of public gatherings.

Moreover, the SACCO saw its savings and loan portfolios take a hit as most of its members were constrained in conducting their business as a result of restrictions imposed by the government to limit the spread of the pandemic.

“Last year was a very hard one; the majority of our members are Boda Boda riders and others work at tour sites which were not working during the lockdown, so most of the businesses were on standstill. This affected our savings, loan repayment, and loan portfolio,” said Fortunate Kusemererwa, the SACCO’s Manager.

Consequently, he revealed, by year’s end the loan repayment rate had dropped from 92 to 85 percent, and the loan portfolio reduced from Shs 634m to Shs 464m

Kusemererwa said that Kitojo Care SACCO, which was started in 2007 with the aim of increasing members’ household incomes and improve on their saving culture, has since last year been faced by the challenge of the majority of its members being dormant, “to the extent that they cannot even afford to save Shs 10,000 per month.”

Taking a toll

The slowdown in the SACCO’s momentum has taken its toll on some of the developmental projects that it had recently undertaken.

For instance, Kusemererwa disclosed that the SACCO had in 2019 embarked on a project to construct its own office premises after squatting for several years at those of Kitojo Integrated Development Association (KIDA), its mother organization.

“KIDA has been hosting us for all these years, but in 2019, we decided to start constructing our own offices because members have since increased and cannot fit in the little space we are currently occupying,” he said.

However, due to the financial difficulties from the last year, they have not been able to continue with construction works.

“We had hoped to complete our office last year, but due to the lockdown, we had to halt it. Savings have drastically reduced, loan recovery is still poor and our members no longer take loans,” he explained.

AGM resolutions

Kusemererwa said this year’s AGM resolved that each member should contribute Shs 1,500 per month towards the completion of their office block, which he believes is the only option that will save them.

The Kabarole District Commercial Officer (DCO), John Kabango, who attended the AGM, advised members to reacquaint themselves with the reasons why they joined cooperatives in the first place so that they can enjoy the most benefits from them.

“Some people just join SACCOs to borrow money and run away without paying back. You need to know that these SACCOs are voluntary and are meant to help people improve their standard of living,” Kabango said.

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Nine SACCOs cleared to receive Emyooga funds in Masindi

Nine out of 54 SACCOs in Masindi district have been cleared to receive the long-awaited Emyooga cash, Moses Kalyegira, Masindi district’s Commercial Officer has revealed.

Kalyegira says the nine, which hail from the three constituencies of Masindi municipality, Bujenje county, and Buruli had met all the requirements for receiving the money and had already received Shs 132m so far.

The DCO was responding to widespread complaints by several SACCOs over delayed disbursement of the promised Emyooga cash, with many reporting that they had started receiving the money on their accounts in December but were unable to access it.

“Clearing of SACCOs is still ongoing; they could not all be cleared at the same time,” Kalyegira explained.

He went on to list the other obstacles standing in the way of some SACCOs’ receiving the money.

“You should know that you must have saved 30% of the money you are asking for. Also, the bank has to clear the resolutions by the SACCO before giving you the money. The bank’s legal team has to look into them and send them to the ministry of trade for verification before giving you a go-ahead to withdraw the money,” said Kalyegira.

The official handover of the money was launched by Masindi Resident District Commissioner (RDC), Rose Kirabira, who warned the beneficiaries against misusing the funds.

“I advise you to use this capital to move out of poverty and also develop the culture of saving. This is a push-up for your SACCOs but not money for eating,” Kirabira said.

She also encouraged the beneficiaries to report any individuals engaged in mismanaging the SACCOs’ monies so that action can be taken against them.

Cate Gafa, the Masindi Municipality Town Clerk, implored the members to use the money effectively to enable them to attract more support from the government.

“This can only be achieved when there is a good saving culture and financial discipline,” she cautioned.

The beneficiaries who turned up for the launch expressed happiness, saying they had lost hope in the program.

“Some members had even threatened to withdraw their savings because they were not seeing any future in staying with the program,” explained a beneficiary who spoke on condition of anonymity.

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Co-operators condemn ‘confused’ regulatory regime

Co-operators in Western Uganda have condemned what some referred to as a “confused” regulatory regime resulting from the enactment of various laws meant to regulate the operation of cooperatives, SACCOS in particular, within the country.

The co-operators expressed their discontent during a regional forum on the changing regulatory environment for SACCOs in Uganda. The forum, which was held on Wednesday last week, brought together more than 100 leaders of cooperatives in Western Uganda, including board members, supervisory committee members, members of vetting committees, and other management staff.

According to Dr. Sylvester Ndiroramukama, Chief Executive Officer, Uganda Co-operative Savings and Credit Union (UCSCU), the discussion focused on how to harmonize the different regulations that affect the operations of SACCOs in Uganda.

“We want to bring to the attention of our members the implications of the regulations in the gazetted various sections of the Cooperative Societies Act and the Tier IV Microfinance Institutions and Moneylenders Act, 2016,” Ndiroramukama explained.

Besides the Cooperative Societies Act Cap. 112 by which all cooperatives are governed, SACCOs are now also governed by the Tier IV Microfinance and MoneyLenders Act, 2016, and the Microfinance Deposit-Taking Institutions Act, 2003.

The law further subjects SACCOs to the governance of-the Uganda Microfinance Regulatory Agency (UMRA) and Bank of Uganda, by which they are required to be licensed, in addition to being under the oversight of the Registrar of Cooperative Societies, under the Ministry of Trade Industry and Cooperatives (MTIC).

“Suffocating cooperatives”

Elaborating on the regulatory situation of SACCOs in Uganda, participants at the forum argued that the stringent regulations subjecting the sector to a variety of actors could have the effect of “suffocating” cooperatives.

Ndiroramukama says that as co-operators, they are advocating for a single regulator for the sector, and an independent authority in charge of licensing, regulating, and supervising SACCOs.

“We don’t care who that single regulator would be but what we want is for the SACCOs to enjoy the benefits of backward and forward linkages,” he said.

Ndiroramukama anticipates the collapse of several SACCOs in the country if the issue of multiple regulations in the sector is not sorted out in time.

“Definitely if the status quo remains, SACCOs will die and this is why we are bringing it to the attention of the government that the current laws conflict against each other,” Ndiroramukama said.

Stephen Bongonzya, the vice-chairman of UCSCU, revealed that the different regulators are jostling for control over SACCOS, something he thinks could be injurious to the cooperatives. He too believes the legal regime as it is could spell disaster for some SACCOs.

“The Microfinance Deposit-Taking Institutions Act regulates companies meaning that some of the SACCOs that cross will automatically become companies, and you can never be allowed to slide back. In case of issues, Bank of Uganda will either advise you to merge, be bought or end up collapsing, which is the reason we are insisting that they remain as SACCOs,” Bongonzya explained.

Sort us out, or else…

Some of the attendees at the forum threatened to stage a strike if the law is not rectified to have a single regulator for all cooperatives.

“We had several discussions and made recommendations, but our submissions were not considered when amending the Act? Are we now orphans? If we don’t have any ministry that is concerned for our affairs, this is the right time to start a strike to retain our identity as SACCOs,” a tough-talking staffer of Kitaga SACCO fumed.

However, the CEO of UCSCU, urged the co-operators to desist from any talk of violence, saying they will use non-violent processes to bring about the desired harmony within the cooperative laws.

“We are not going to strike because as co-operators we don’t believe in violence; we are democratic and law-abiding institutions, which is why we use the approach of engaging and petitioning, which doesn’t involve using excessive force or violence,” Ndiroramukama said.

Rev. Can. Duncans Mugumya, the Board Chairman, Jubilee SACCO (West Ankole Diocese), also urged calm, calling instead for engagement with lawmakers, saying, “The existing law was passed by human beings and can just as well be changed be the same.”

Prominent among the issues raised by participants were the number of licensing and supervisory agencies, and the mix-up of funds, among others. that were petitioned to the speaker of parliament.

The UCSCU officials reported that they had petitioned Parliament about the issues of concern to cooperatives.

“We have raised the contradictions with the Office of the Speaker of Parliament through a petition, and she has already written to the relevant committees of ministries to ensure that they harmonize these inconsistencies in the two laws,” Bongonzya said.

Spilled milk

However, a cross-section of the co-operators in attendance likened their peers’ complaints to crying over spilled milk, saying the time for protest is now long past, given that the offending law is already in place.

“I think we should comply with the law. We should have defied when it was still in preparation, but now that it’s already amended it’s a challenge to overcome. We can instead adopt amicable means to resolve the gaps within it,” argued Charles Muramuzi, one of the participants.

Muramuzi also opined that some of the resistance to the new legal regime is born of fear by SACCOs that have till now been non-compliant with existing regulation.

“The problem is that we are fearing change vis-à-vis compliance because these new regulations are very strict with regard to compliance, and yet we are not doing what we are supposed to be doing as SACCOs. But if we accept these laws, then we can benchmark and grow like any other successful cooperatives,” he said.

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Kakumiro bee farmers resolve to form SACCO

Bee farmers in Kakumiro district have resolved to form a SACCO in a bid to address some of the challenges they face in their enterprise.

According to Joseph Serugo, a bee farmer and conservationist with Kayirebwa Chimpanzee Conservancy, since 2010 he and other farmers have been using traditional methods to make beehives and process their honey, but they want to adopt modern ones come April.

In addition, the farmers intend to set up a SACCO with a central collection point where members can bulk their honey that they would then sell at a fair price.

“Plans are in high gear to organize for the modern beehives and establish a SACCO so that things like marketing improve. We are currently earning very little for our honey,” Serugo told theCooperator.

“We are currently earning very little for our honey,” Serugo told the Cooperator.

Serugo, who says he currently earns about Shs 500,000 each season from honey, believes the increased investment in the business will attract more customers and boost his earnings.

Sarah Katono, also a bee farmer and member of the same group, says a SACCO would save them from having to borrow from external lenders who tend to levy prohibitively high-interest rates.

“I want to be able to purchase machines to harvest wax from my bees and add value to it by making items like candles. I am unable to do that currently because the money I get is not enough,” Katono said.

She also hopes that the SACCO can help members push for better honey prices and improve their livelihood.

“I sell my honey at between Shs 5,000- Shs 10,000 to middlemen and also individual customers who buy for their own consumption but I would like to earn more from it,” she said.

Meanwhile, William Lalobo, a private conservationist at Aswa Falls Conservancy and a beekeeper, plans to extract bee venom for export.

“I have already received the machines and will soon begin extraction of the venom,” Lalobo says.

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