A lawyer has asked the High Court in Kampala to sentence three top officials of Exodus Co-operative Savings and Credit Society (SACCO) to six months in prison for allegedly continuing to deduct money from Uganda Police Force officers’ salaries in defiance of a court order.
Steven Kalali, who successfully challenged the compulsory enrolment of police officers into the SACCO, has filed an application seeking to have the cooperative and its officials held in contempt of court over deductions allegedly made in July and August 2026.
In the application before the Civil Division of the High Court, Kalali accuses the SACCO’s chairperson, secretary and chief executive officer of disregarding a judgment delivered on July 15, 2026, which declared compulsory membership and salary deductions without informed consent unlawful.
He wants the three officials sentenced to six months in prison for contempt of court. He is also seeking Shs200 million in general and aggravated damages against the SACCO, together with costs of the application.
In an affidavit supporting his application, Kalali alleges that the SACCO continued making deductions from the salaries of affected police officers despite being aware of the court’s decision.
“The respondent and its managing officials, despite being aware of the existence of the court verdict and orders declaring monthly deductions on salaries unlawful, still in utter abuse of this court orders went ahead and in the month of July as well as August 2026 and deducted salaries of the affected Police officers without their informed consent,” Kalali states in the affidavit.
He argues that the alleged deductions constitute a violation of the court’s orders and undermine the authority of the judiciary.
Kalali contends that court orders must be respected by all parties and that the July judgment took effect without requiring further action to protect the officers’ constitutional rights.
He further argues that the right to freedom of association, entitlement to salary and the ability to pursue one’s profession are fundamental rights in a free and democratic society.
According to the lawyer, sanctions are necessary to prevent further alleged violations and uphold the authority of the court.
“There is need to protect the sanctity of court and respect for its orders and the respondent unless barred through serious sanctions will continue to disrespect court orders and with impunity,” he states, adding that the alleged conduct warrants general and exemplary damages.
As part of his supporting evidence, Kalali has reportedly presented correspondence from the Attorney General’s Chambers indicating that guidance had been issued to the Uganda Police Force on implementing the judgment.
The letter, signed by Martin Mwambutsya on behalf of the Solicitor General, states that appropriate guidance had been communicated to police management to ensure compliance with the court’s orders and protect the constitutional rights of serving officers.
“In particular, appropriate guidance has been communicated to the Uganda Police Force requiring strict compliance with the orders of the court and ensuring that the constitutional rights of serving police officers are respected and protected,” the letter reads in part.
The correspondence is being relied upon by Kalali to support his contention that the relevant authorities had been informed of the judgment and the need to stop deductions made without officers’ consent.
The allegations in the contempt application have not, on the information provided, been established by a further court ruling. The application seeks judicial determination of whether the SACCO and its officials disobeyed the earlier orders.
The application stems from a landmark judgment delivered on July 15, 2026, by High Court Civil Division judge Bonny Isaac Teko in a case brought by Kalali against Exodus SACCO and the Attorney General.
Kalali had challenged the automatic enrolment of newly recruited police officers into the SACCO, arguing that the practice had been in place since 2015 and involved monthly salary deductions ranging from Shs20,000 to Shs50,000.
He contended that officers graduating from Kabalye Police Training School were enrolled without being given a meaningful opportunity to decline membership or withdraw from the cooperative.
The lawyer also challenged the legality of the SACCO’s financial operations, arguing that it had been accepting deposits and issuing loans without the requisite licence under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
In its judgment, the court declared that serving police officers have a constitutional right to freedom of association, including the freedom to join or decline membership in an association of their choice.
“A declaration is hereby issued that all serving police officers have a right to freedom of association, including the freedom to join or to decline to join any association of their own choosing,” the court ruled.
Justice Teko cited Article 29(1)(e) of the Constitution, which guarantees freedom of association, including the right to form and join associations and unions to protect one’s interests.
The judge noted that the Constitution does not generally exclude serving police officers from enjoying that right, subject to any lawful and justifiable restrictions.
The court further found that there was no evidence demonstrating that the affected officers had freely and voluntarily consented to membership of Exodus SACCO.
It consequently declared that enrolling officers from the 2015 intake onwards without their free, express and documented consent violated their constitutional rights.
The court also ruled that salary deductions made without proven free and informed consent were unlawful.
In addition, it declared that the SACCO’s operation of financial services without the requisite licence from the Uganda Microfinance Regulatory Authority or the Bank of Uganda, as applicable, contravened the law.
Under the July judgment, Exodus SACCO was directed to regularise the membership of affected officers within six months by giving them a documented opportunity to choose whether to remain members or withdraw without penalty.
Officers who choose to leave are entitled to access their accumulated savings and any accrued dividends.
The SACCO was also directed to finalise its pending application for a Bank of Uganda licence. Failure to obtain the licence within the stipulated period would require it to stop accepting new deposits and disbursing new loans, subject to the court’s provisions concerning existing loans and accounts of members who elect to remain.
The Registrar of Co-operatives was ordered to audit the SACCO’s membership records and accounts relating to officers recruited from the 2015 intake onwards and report the findings to the court within nine months.
The Attorney General’s Chambers subsequently advised the Uganda Police Force to ensure that no officer is enrolled into Exodus SACCO, and no salary deductions are made for membership or contributions, without documented, free and informed consent.
Kalali’s latest application now seeks to have the court determine whether the alleged deductions made after the July judgment amount to contempt and whether the SACCO’s officials should face the sanctions he has requested.
