The Civil Division of the High Court in Kampala has ruled that membership in the Uganda Police Force’s Exodus SACCO is voluntary, declaring that serving police officers cannot be compelled to join the savings and credit cooperative or have money deducted from their salaries without their consent.
In a landmark judgment delivered on Wednesday, Justice Bonny Isaac Teko of the Civil Division held that the compulsory enrolment of police officers into Exodus SACCO violates the constitutional right to freedom of association guaranteed under Article 29(1)(e) of the Constitution.
The ruling followed an application filed by lawyer Steven Kalali against Exodus SACCO and the Attorney General, challenging the automatic enrolment of newly recruited police officers into the SACCO and the subsequent salary deductions made without their consent.
Kalali argued that since the 19th intake of police recruits graduated from Kabalye Police Training School in 2015, officers had automatically been registered as members of Exodus SACCO, with monthly deductions of between Shs20,000 and Shs50,000 deducted directly from their salaries despite not being given a meaningful opportunity to decline membership or opt out.
He also challenged the legality of the SACCO’s operations, arguing that it had been accepting deposits and issuing loans without the licence required under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
In his judgment, Justice Teko reaffirmed that police officers enjoy the same constitutional freedom of association as other Ugandans unless Parliament has lawfully imposed specific restrictions.
“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 judge noted that no law had been presented before the court restricting serving police officers from exercising that constitutional right.
“There is no exception in the Constitution excluding serving members of the Uganda Police Force from the enjoyment of this right, save to the extent that Parliament may, by law, impose reasonable and demonstrably justifiable restrictions in the interests of matters such as defence, public safety or public order, in accordance with Article 43 of the Constitution. No such restriction specific to police officers has been placed before this Court.”
The court found that there was no evidence that police officers recruited from 2015 onwards voluntarily applied to become members of Exodus SACCO.
Justice Teko ruled that the automatic recruitment of officers into the cooperative was unconstitutional.
“The involuntary recruitment of members of the Uganda Police Force, from the 2015 (19th) intake to date, into the membership of the 2nd Respondent, without their free, express and documented consent, violates their right to freedom of association under Article 29(1)(e) of the Constitution.”
The judge added that the finding was based on evidence relating to recruits from the 2015 intake onwards.
The court also declared unlawful the monthly salary deductions made from affected officers where there was no proof of informed consent.
“The monthly deductions made from the salaries of the affected officers as contributions to the 2nd Respondent, in the absence of proven free and informed consent, are unlawful.”
In another significant finding, the court ruled that Exodus SACCO has been operating illegally by offering financial services without obtaining the licence required by law.
“The operation of the 2nd Respondent’s financial services business without a licence from the Uganda Microfinance Regulatory Authority or Bank of Uganda, as applicable, is illegal and in contravention of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.”
To remedy the violations, the court ordered Exodus SACCO to regularise the membership of all affected officers within six months by giving them a documented opportunity to either remain members or exit the SACCO without penalty.
Officers who choose to leave must be allowed to withdraw their accumulated savings together with any accrued dividends.
The court further directed the SACCO to complete its pending application for an operating licence within six months. Failure to secure the licence will bar it from accepting new deposits or issuing new loans, although it may continue servicing existing loans and maintaining accounts for members who choose to remain.
Justice Teko also ordered the Registrar of Co-operatives to conduct an audit of the SACCO’s membership records and accounts relating to officers recruited since 2015 and report the findings to the court within nine months.
The Attorney General who was also a respondent in the case was directed to issue guidance to the Uganda Police Force and Exodus SACCO to ensure that no serving officer is enrolled into the cooperative or subjected to salary deductions unless they have provided documented, free and informed consent.
