Speaker of Parliament Rt. Hon. Jacob Marksons Oboth has brokered a breakthrough in the long-running regulatory standoff between the Bank of Uganda (BoU) and Savings and Credit Cooperative Organisations (SACCOs), paving the way for a phased approach to licensing compliance.
The agreement was reached during a two-hour meeting at Parliament on September 23, 2026, convened after the Uganda Co-operative Savings and Credit Union Limited (UCSCU) petitioned Parliament over what it described as unreasonable licensing requirements imposed on SACCOs.
The dispute had intensified after BoU required large SACCOs to submit licensing applications by September 30, with the central bank warning that non-compliant institutions could face restrictions on access to the commercial banking system and mobile money transactions.
Under the compromise, large SACCOs are expected to pick up licensing application forms within seven days as a demonstration of willingness to comply. Those that make genuine efforts to complete the licensing process by March 31, 2027, will be considered under the phased arrangement, while June 30, 2027 has been proposed as a possible outer limit, subject to BoU’s position.
Speaker Oboth also directed the Ministry of Finance, Planning and Economic Development to initiate amendments to the law governing SACCOs in a bid to harmonise the regulatory framework and address overlapping mandates.
The move follows concerns from cooperative leaders that SACCOs are currently subject to different laws and regulatory institutions, creating uncertainty over the applicable requirements. UCSCU said SACCOs were not opposed to regulation but wanted a harmonised system under a clear legal framework.
BoU Governor Michael Atingi-Ego, however, maintained that the central bank’s licensing requirements are based on existing legislation, including the Microfinance Deposit-Taking Institutions Act and the 2023 regulations governing registered societies.
Atingi-Ego said eight SACCOs were already fully licensed, 21 were at the final stage and about 50 had picked up application forms. He also cautioned that regulatory compliance remains important as Uganda prepares for a Financial Action Task Force mutual evaluation beginning in 2027.
The meeting also resolved that a task force previously established to develop counter-proposals to BoU’s position should be reinstated to follow up on the agreed roadmap.
The latest agreement gives SACCOs additional time to work toward compliance while Parliament and the relevant government agencies pursue changes to the legal framework underpinning the sector.
