The Police Savings Association Limited (PSAL), the oldest police savings and credit cooperative society (SACCO), has disbursed loans worth Shs10.2 billion to its members
The disclosure was made during the association’s sixth Annual General Meeting (AGM), held at Nsambya Sharing Hall on Saturday.
PSAL Board Chairperson, SCP Christine Nanding, said with a total asset base of Shs10.4 billion, member savings of Shs21 billion, fixed deposits of Shs3.8 billion and a reported net worth of Shs21.8 billion.
The sacco has disbused loans worth Shs10.2 billion which she said demonstrates the association’s role in helping members access credit to meet their financial needs.
Nanding urged members to appreciate the progress made, noting that the SACCO provides an alternative source of borrowing for police officers who might otherwise struggle to access affordable financing.
“Members should be happy with what we have achieved. Many police officers work with limited resources, and having an institution where they can save and borrow money under more favourable conditions is important to their welfare,” she said.
Despite the reported progress, Nanding identified restrictions surrounding letters of undertaking as a major concern affecting members’ access to their savings.
She argued that the requirement should primarily apply when members seek loans and should not unnecessarily restrict access to their own savings.
“We believe the letter of undertaking should suffice in cases where a member is applying for a loan. It should not become a barrier when a member wants to access their own savings because the money belongs to them, and they should have the ability to make decisions without unnecessary encumbrances,” she said.
She acknowledged management’s concerns about protecting officers from excessive salary deductions but argued that the existing arrangements could discourage saving.
“While we appreciate management’s intention to prevent situations where officers’ salaries are excessively deducted, we believe the current restrictions have hampered the saving culture. This may also undermine the broader government policy of encouraging citizens to accumulate wealth through saving and investment,” Nanding added.
She also raised concerns about delays in updating loan deductions in the salary system, saying some members experience lengthy processing periods followed by excessive deductions when the transactions are eventually reflected.
Senior Commissioner of Police Timothy Halango, the acting Director of Police Welfare, urged PSAL leaders to strengthen engagement with police management, market the association more effectively and attract more members.
Halango said the Sacco had significant potential to improve officers’ financial security but needed to reach a larger proportion of the police force.
He encouraged the association to engage management regularly on investment plans and explore opportunities to support institutional welfare programmes.
“We need to be sharing information about PSAL’s plans, the support management can provide and the institution’s priorities. We should be asking how PSAL can help us realise those plans and how we can work together to improve the welfare of our personnel,” he said.
Halango noted that the Uganda Police Force has approximately 56,500 personnel, yet PSAL’s membership remains below 3,000.
He challenged the association to intensify recruitment and public awareness campaigns so that more officers could benefit from its financial services rather than relying on informal lenders and loan sharks.
“Why should an association with this potential attract only about 2,900 members out of a force of 56,500? Every day, police officers are looking for money, and some are getting it from loan sharks under difficult and expensive conditions. PSAL needs to market itself and demonstrate the benefits it offers,” he said.
He added that a larger membership base would increase the pool of resources available for lending, investment and member-focused projects.
Halango also urged PSAL to move beyond conservative investment approaches and consider commercially viable ventures that could generate income while addressing the needs of police officers.
Among the proposals he outlined were supplying selected construction materials for police housing projects, purchasing land for subdivision and resale to members, producing concrete blocks and paving materials, providing event equipment and establishing car-washing facilities.
He said the ongoing construction of police accommodation and other facilities could create opportunities for the SACCO to participate in the supply chain.
“What if PSAL positioned itself to supply some of the building materials required for police construction projects? We are going to build on a large scale over the coming years, and that presents an opportunity worth exploring,” Halango said.
He also proposed that the association consider acquiring large tracts of land and subdividing them into affordable plots for members.
“If we invested in land, subdivided it and sold plots to our members at affordable prices, we would be addressing a real welfare need while creating an income stream for the association. These are opportunities we should examine carefully,” he said.
Halango stressed that such ventures would require proper assessment and sound governance to ensure members’ funds were protected and investments remained sustainable.
He further urged the association to maintain transparent processes and avoid internal disputes that could undermine confidence among members and prospective partners.
“Money does not like noise. If there is constant noise and uncertainty, we may struggle to attract people who would want to partner with us. Let us strengthen how we govern ourselves, our processes and our systems so that we do not create opportunities for unnecessary trouble,” he said.
