Bank of Uganda extends SACCO licensing deadline to March 2027

The Bank of Uganda (BoU) has agreed to extend the licensing deadline for large Savings and Credit Cooperative Organisations (SACCOs) from September 30, 2026, to March 2027. This extension follows a meeting convened by the Speaker of Parliament, Jacob Markson Oboth, to resolve a dispute between the central bank and cooperative stakeholders.

Large SACCOs are defined as those holding voluntary savings exceeding Shs 1.5 billion and institutional capital of at least Shs 500 million. The previous deadline posed a risk of these organizations being cut off from the commercial banking system and mobile money services, which leaders warned could trigger financial panic.

As part of the resolution, the Ministry of Finance has been directed to initiate an amendment to the law governing SACCOs. The extension is intended to allow for further consultations between the BoU and stakeholders, including the Uganda Cooperative Savings and Credit Union Limited (UCSCU) and the Uganda Cooperative Alliance (UCA), regarding licensing requirements and legal concerns.