By Spy Uganda
The Government has instructed the newly inaugurated Board of Directors of Walimu Sacco to urgently recover more than Shs11 billion in defaulted loans and revive dormant teachers’ savings and credit cooperatives (Saccos) across the country.
The directive was issued under a recovery plan that requires the board to ensure at least 80 percent of the outstanding loan portfolio is recovered by March 31, 2027, as part of wider efforts to restore confidence in Uganda’s teachers’ cooperative movement.
The Ministry of Trade, Industry and Cooperatives has raised concern over the performance of the Sacco after injecting Shs27 billion into its operations. Officials say Shs11 billion remains locked in unpaid loans, weakening the institution’s financial stability and limiting its ability to serve members effectively.
Speaking during the inauguration ceremony in Kampala, Robert Bariyo Barigye, Commissioner for Cooperatives Policy and Development at the Ministry of Trade, Industry and Cooperatives, stressed the need for stronger governance, supervision, and accountability.
“The board has been tasked with strengthening supervision, improving governance, and ensuring recovery of the outstanding funds lost through poorly managed Sacco lending,” he said.
Barigye further revealed the extent of challenges facing teachers’ cooperatives nationwide, noting that only 39 out of 385 registered teachers’ Saccos are currently active, a situation he described as a wake-up call for improved leadership and monitoring within the sector.
The newly appointed Board Chairperson, Steven Olinga, pledged to prioritise restoring trust in the institution and strengthening financial discipline among members.
“We accept this challenge with full commitment. Our priority will be to restore trust among teachers, revive dormant Saccos, and ensure that public funds injected into the sector deliver value to members,” Olinga said.
Similarly, Caroline Atai urged the board to deliver measurable results through improved governance systems and modernised operations, including the adoption of technology-driven financial management tools.
She emphasised the need for tighter controls to minimise future loan defaults and improve service delivery to teachers across Uganda.
The government has indicated that the success of the new board will be assessed not only by the recovery of outstanding funds but also by the revival of dormant Saccos and overall improvements in efficiency, accountability, and member services.
Officials say the reforms are critical to stabilising the teachers’ cooperative sector, which has faced persistent governance challenges and weak loan repayment culture in recent years.
