Uganda Government to Close Errant SACCOs

Tuesday, August 30, 2016

State minister for micro-finance, Haruna Kyeyune has sent a stern warning to financial institutions that cheat clients. Kyeyune said that those SACCOs cheating clients will be closed down.

Speaking to New Vision, Kyeyune re-affirmed his warning to members against swindling finances meant to spur rural development through extension of cheap loans. His warning comes after he met different SACCO representatives at the headquarters of Association of Microfinance Institution of Uganda (AMFIU) to deliberate on issues affecting them. Recently, SACCO members from Rakai and Sembabule districts lost over sh2bn and shs800m respectively.

The members called for action against those who had misappropriated funds. According to Kyeyune, all the implicated SACCO managers should be forced to return the finances or be arraigned in courts of law. Figures available at micro-finance ministry indicate that about 68% of Ugandans cannot afford loans and only a paltry 32% can access loans from financial institutions.

Kyeyune said under this term dubbed ‘Kisanja hakuna muchezo’ institutions not complying with set regulations risk closure.

Source: New Vision (link opens in a new window)

microfinance, rural development