Business 24 September 2026 Daily Monitor (Uganda)
Parliamentary Review Initiated to Resolve Bank of Uganda-SACCO Standoff
Speaker Jacob Oboth has directed the Ministry of Finance to amend laws governing SACCOs to end a dispute with the Bank of Uganda over licensing requirements. The move follows a petition from SACCO leaders concerned about a directive from the Bank of Uganda. Source: https://www.monitor.co.ug/uganda/news/national/speaker-oboth-pushes-law-review-to-end-bou-sacco-standoff-5607716
Speaker of Parliament, Jacob Marksons Oboth, has intervened in the ongoing dispute between the Bank of Uganda (BoU) and Savings and Credit Cooperative Organisations (SACCOs). He has instructed the Ministry of Finance, Planning and Economic Development to begin the process of amending the relevant laws.
This directive comes after a meeting held at Parliament on September 23, involving officials from the BoU, cooperative leaders, and the Finance Ministry. The meeting was convened following a petition by the Uganda Co-operative Savings and Credit Union Limited (UCSCU) challenging a BoU directive that required large SACCOs to obtain licenses by September 30, 2026. Failure to comply would result in exclusion from the commercial banking system and mobile money services.
The proposed legal amendments aim to create a harmonized regulatory framework specifically for SACCOs, addressing the conflict between existing laws. Speaker Oboth emphasized the need for a balanced approach, stating, “When two laws conflict or contradict each other, you need a Speaker to speak to both sides so they can see the difference, and everyone is left happy.”
While BoU Governor Michael Atingi-Ego stressed the importance of adhering to the law to prevent Uganda from being placed on a grey list, which could harm the economy, Oboth acknowledged the concerns raised by the SACCO petitioners. He noted that court decisions had already indicated issues with the current law’s implementation, suggesting an amendment as the appropriate solution.
As a compromise, large SACCOs are urged to demonstrate their commitment to compliance by submitting licensing applications within seven days. Those making genuine efforts to complete the process by March 31, 2027, will be considered part of a phased arrangement, with a potential final deadline of June 30, 2027, pending BoU’s agreement.
UCSCU CEO Sylvester Ndiroramukama clarified that SACCOs are not against regulation but desire a harmonized framework, stating, “We actually want to be regulated, but we want regulation which is harmonised.”