President Museveni has disbursed a total of Shs11.1 billion to SACCOs representing key informal sectors across the country, as part of a broader government initiative aimed at economic empowerment and job creation.
During a meeting held at State Lodge, Nakasero on Saturday, the president handed over funds to representatives of SACCOs comprising mechanics from the five divisions of Kampala City, Masters of Ceremonies (MCs) from 18 zonal regions, and graduates from the State House Industrial Skilling Hubs located in 176 administrative units including districts, cities, and municipalities.
According to the breakdown, Shs8.8 billion was allocated to Skilling Hub SACCOs (Shs50 million each), Shs1.8 billion to MCs SACCOs (Shs100 million each for 18 groups), and Shs500 million to Mechanics SACCOs (Shs100 million each for five groups).
President Museveni emphasized that the funds are to be issued to beneficiaries at an affordable interest rate not exceeding 6% per annum. He warned against mismanagement or exploitation.
“The loans must be at 6 percent, no more than that per year, and this must be documented legally. Anyone who violates this will go to jail,” Museveni stated.
The President explained that the 6 percent interest is guided by the current inflation rate of about 3 percent, allowing beneficiaries to return manageable repayments.
“If I give you Shs1 million, after a year you return Shs1.06 million. For Parish Development Model (PDM) beneficiaries, we give two years to allow them to harvest,” he added.
President Museveni further noted that if the SACCOs utilize the current funds effectively, the government is ready to inject more resources.
“For some categories like fishermen, we have created a special budget because their equipment is more costly. You too can submit a proposal detailing how you intend to use the funds, and I will approve it,” he said.
The State House Comptroller, Jane Barekye, said the initiative is part of the President’s broader agenda to economically uplift ordinary Ugandans including market vendors, ghetto youth, MCs, and mechanics.
She clarified that Kampala is not currently among the Skilling Hub SACCO beneficiaries, as registration is still ongoing. Only trainees who have completed courses at the hubs will be eligible to borrow start-up capital, with a one-year grace period for repayment.
