KAMPALA – The government has tasked the newly inaugurated Board of Directors of the Cooperative Savings and Credit Union, Walimu Sacco, with recovering more than Shs11 billion in defaulted loans and reviving dormant teachers’ Saccos across the country.
The board has until March 31, 2027, to recover at least 80 per cent of the outstanding loan portfolio, as part of wider efforts to restore confidence in the teachers’ cooperative movement.
The directive comes after the Ministry of Trade, Industry and Cooperatives injected Shs27 billion into Walimu Teachers Sacco. Officials say Shs11 billion of that remains tied up in loan defaults by teachers nationwide, weakening the institution’s ability to serve members and promote financial inclusion.
A wake-up call for stronger monitoring
Speaking during the board’s inauguration in Kampala, Robert Bariyo Barigye, Commissioner for Cooperatives Policy and Development at the Ministry, said the priority is better governance and accountability.
“The board has been tasked with strengthening supervision, improving governance, and ensuring recovery of the outstanding funds lost through poorly managed Sacco lending,” Bariyo Barigye said.
He revealed the scale of inactivity in the sector. “Only 39 out of the 385 registered teachers’ Saccos are currently active. This is a wake-up call for stronger monitoring and better leadership within the cooperative movement,” he added.
New board pledges to restore trust
The newly inaugurated Board Chairperson, Steven Olinga, said the board will move fast to turn around the institution.
“We accept this challenge with full commitment. Our priority will be to restore trust among teachers, revive dormant Saccos, and ensure that public funds injected into the sector deliver value to members,” Olinga said.
Walimu Sacco General Manager Caroline Atai said results will be expected on governance, technology, and loan recovery.
“We expect the board to restore the Sacco’s credibility by reviving inactive societies, strengthening technology-driven financial systems, and putting in place robust measures that will minimise future loan defaults,” Atai said.
Revival seen as critical
Government officials said the recovery of defaulted loans and the revival of dormant Saccos are critical to rebuilding Uganda’s teachers’ cooperative movement, which has been weakened by governance challenges and a poor culture of loan repayment.
The performance of the new board, officials said, will be measured by the amount recovered, the number of Saccos revived, and improvements in service delivery to teachers across the country.
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