By KT Reporter
leaders in the sector have renewed calls for comprehensive legal and policy reforms to revitalize the country’s cooperative movement. With over 45,000 cooperatives active in agriculture, finance, energy, housing, and transport, stakeholders say the sector holds vast potential for economic transformation, especially in rural areas. However, they warn that outdated laws, weak governance, and poor oversight continue to limit growth.
Speaking at a media briefing, Francis Mwebesa, Minister of Trade, Industry and Cooperatives, emphasized the urgent need to reform the legal framework governing cooperatives, particularly Savings and Credit Cooperative Organizations (SACCOs). “There is a pressing need to reform the legal and regulatory environment governing cooperatives. Many of the existing laws are outdated and overlapping, making it difficult for cooperatives to operate efficiently,” Mwebesa said.
He cited a range of challenges—including limited capitalization, mismanagement, poor infrastructure, and a lack of legal clarity—that have contributed to stagnation and diminished public trust in the cooperative model. In response, Mwebesa revealed that the Ministry has initiated a nationwide validation exercise to assess the legal compliance and viability of all cooperative unions and their primary societies.
He said several unions—including North Bukedi, Wamala, Bunyoro, and Busoga—have already been audited, resulting in the dissolution of their boards and preparations for fresh elections. All remaining unions will be validated by October 2025. To enhance accountability, the Ministry recently launched the Cooperative Registry Management Information System (CRMIS)—a digital platform to streamline registration, monitoring, and membership verification through integration with the National Identification and Registration Authority (NIRA).
“This system allows for real-time data entry, online registration, and member verification. It marks a major shift toward transparency and accountability,” the minister said. Johnas Tweyambe, Chairperson of the Uganda Cooperative Alliance (UCA), echoed Mwebesa’s call for reform, noting that Uganda’s cooperative legal framework is fragmented and no longer fit for purpose.
“There are overlaps and gaps in the existing laws, especially regarding SACCOs. We urge the government to harmonize all cooperative-related laws, guided by the Attorney General and Solicitor General,” Tweyambe said. He raised concerns over fraudulent asset sales and poor leadership in some cooperatives, calling for stronger enforcement mechanisms and legal protections. Tweyambe welcomed the government’s action to caveat UCA assets and prosecute those behind illegal transfers.
While supporting the digitization drive, Tweyambe cautioned that legal and enforcement mechanisms must keep pace with technology. The Ministry has pledged to offer training and technical support to cooperatives during the transition to the new digital system.
Another critical area of reform, Tweyambe said, is capacity building. He called on the government to upgrade Kigumba and Tororo Cooperative Colleges into degree-awarding institutions and develop a National Cooperative Education Policy. “Cooperative success depends on competent leadership. Education must be prioritized to ensure sustainability,” he emphasized.
Tweyambe also called for improved support for district commercial officers, who are legally tasked with supporting cooperatives but often lack training and facilitation. On the financial front, he hailed the re-establishment of the Cooperative Bank after 25 years as a “historic milestone,” but urged the government to urgently capitalize the bank so it can provide low-cost, sector-specific loans to rural cooperatives.
UCA also proposed consolidating government funds from initiatives such as EMYOGA, the Parish Development Model (PDM), Youth Livelihood Fund, and Women Entrepreneurship Fund into a single Cooperative Fund, managed through the Cooperative Bank. This, they argue, would reduce duplication, enhance inclusion, and improve service delivery.
Ivan Asiimwe, UCA’s General Secretary, pointed out conflicting provisions in the MDI Act, Tier 4 Microfinance Act, and Cooperative Societies Act, which have created confusion over the registration and supervision of SACCOs. He welcomed legal opinions from the Attorney General supporting reform and revealed that Parliament is preparing to debate a new bill aimed at establishing a unified regulatory framework for cooperatives.
Minister Mwebesa said the cooperative reform agenda aligns with Uganda’s Vision 2040, the Fourth National Development Plan, and the Sustainable Development Goals, especially Goal 1: No Poverty. He said cooperatives play a crucial role in delivering poverty alleviation programs like EMYOGA and PDM, which target the 39% of Ugandans still in the subsistence economy.
Tweyambe concluded by emphasizing that the cooperative movement—once viewed as informal—is increasingly attracting professionals, youth, and women, and is key to Uganda’s inclusive industrialization and development-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
