President Museveni has committed shs10.2 billion to boda boda Savings and Credit Cooperative Organisations (SACCOs) in the Kampala Metropolitan Area, with a strict directive that loans issued must not exceed an annual interest rate of 6%.
During a meeting with leaders of 102 SACCOs at Kololo Ceremonial Grounds on Sunday, September 21, the President announced that each association will access shs100 million to empower ordinary riders, not business elites.
“I was pleased to meet with the Bodaboda leaders from the Kampala Metropolitan area today at Kololo. They represent 102 Saccos and I have contributed a total of shs 10.2 billion—100 million for each Sacco. These SACCOs are not for the rich business people ‘Abagagga’ who are looking for profits but rather the motorcycle riders specifically intended to empower them,” Museveni said in a post on X.
He cautioned against misuse of the funds, warning that they should not be handed over to exploitative moneylenders.
“Secondly, this money should not be given to money lenders, as their exorbitant interest rates are unacceptable. It should be used to pay for the value of the motorcycle the way it is,” he added.
Museveni clarified that the 6% interest rate was not designed for profit-making but rather to shield riders from inflationary pressures and predatory lending.
“This rate is not meant for profit but is intended to combat inflation. I will formalize this in writing, and anyone who defies it will face legal consequences,” he stressed.
The intervention was warmly welcomed by boda boda leaders, who described it as overdue relief for riders weighed down by high-cost hire-purchase schemes and loan sharks.
However, they also urged for robust registration, auditing, and monitoring mechanisms to ensure the funds reach the intended beneficiaries.
During the function, the Minister for the Presidency Babirye Milly Babalanda echoed the president’s message, assuring Boda Boda riders of continued government support and urging them to rally behind the NRM government in the upcoming elections.
She cited several reforms and interventions aimed at improving their livelihoods, including the reduction of motorcycle permit fees from Shs500,000 to Shs100,000, ongoing road infrastructure improvements, the establishment of Boda Boda Emyooga, and the new Shs10.2 billion funding initiative.
Kabuye Kyofatogabye, the Minister of State for Kampala, highlighted the economic importance of the Boda Boda sector and said that the government is committed to ensuring its proper regulation and organization.
He revealed that Kampala Capital City Authority has set up 70 committees across the metropolitan area to provide guidance and oversight for the sector.
Speaking on behalf of the Boda Boda operators, Frank Mawejje, Chairperson of riders in the Kampala Metropolitan Area, welcomed the government’s support. He confirmed that the funds would be used to purchase motorcycles directly from manufacturers, helping riders avoid predatory money lenders.
Economists equally commended the initiative, viewing it as a step toward formalising a sector that employs over a million Ugandans. Yet they warned that the scheme risks failure if accountability systems are weak.
They also observed that the benefits of a 6% loan could be eroded by rising fuel prices, spare parts costs, and maintenance expenses that continue to squeeze riders’ earnings.
The boda boda industry is among Uganda’s most vibrant urban employers, though the majority of riders remain outside the formal banking system.
Recent directives from State House have made SACCO certification mandatory before any government funds can be accessed.
With this billion injection into the Boda boda sector, government hopes to stabilise and transform the boda boda sector into a more organised, accountable, and sustainable industry, protecting livelihoods while curbing exploitation.
