Rwenshaka SACCO Approves UGX 50 Million Loan, Reports Strong Financial Growth at 22nd AGM

Rukungiri: Rwenshaka SACCO Limited members have resolved to acquire a UGX 50 million loan from the Microfinance Support Centre to boost their operations, as part of key decisions reached during their 22nd Annual General Meeting (AGM).

The meeting, held at Ruhinda Sub-County headquarters, also approved the transfer of land title for a plot in Rwenshaka Trading Centre into the SACCO’s names, replacing previous ownership. Members further resolved to purchase a new motorcycle to replace the old one with high maintenance costs, as well as acquire a new computer to improve system efficiency and service delivery.

In addition, the SACCO agreed to intensify loan recovery efforts by employing all available measures, including civil suits and summons through various committees, as part of its strategy for the 2026 financial year.

The AGM marks the 22nd since the SACCO’s establishment in 2003, but only the third since its revival on December 27, 2022, after a period of dormancy. Operations officially resumed in January 2023.

While addressing members on April 7, Board Chairperson Henry Mugarura reported significant growth in membership and financial performance. He revealed that by December 31, 2025, the SACCO had registered 807 active members, reflecting an increase of 105 members (13%) from 702 in 2024.

Mugarura also highlighted growth in share capital, which rose from UGX 78,030,000 in 2024 to UGX 89,605,000 in 2025. Total savings increased to UGX 150,208,136, while the loan portfolio expanded to UGX 411,814,231, up from UGX 283,383,540 in 2024.

Profitability also saw a significant rise, jumping from UGX 24,264,930 in 2024 to UGX 78,664,975 in 2025.

He further noted that 3,198 old shares worth UGX 63,960,000 and UGX 45,585,450 in old savings have been verified, with 50 percent of the savings already paid out to claimants last year.

Despite the progress, Mugarura cited several challenges facing the SACCO, including inadequate loanable funds, delayed loan repayments by members—some of whom are board members—low public trust due to past mismanagement, and cases of multiple borrowing by clients.

He also raised concerns about some Local Council (LC) leaders who issue multiple recommendations for clients to access loans from different financial institutions using the same collateral.

The Guest of Honour, Rukungiri District Senior Commercial Officer Caroline Atuheire, commended the SACCO leadership for reviving the institution after it had collapsed. She urged continued cooperation among members and encouraged them to actively promote the SACCO, increase savings, and purchase more shares to strengthen its financial base.

Meanwhile, SACCO Manager Richard Natuhwera advised members to avoid borrowing from money lenders, noting that SACCO loans are more affordable due to lower interest rates. He also warned against multiple borrowing, which can lead to financial strain.