Tuesday, June 18, 2024

How to Apply for a SACCO Licence in Uganda.

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Nyongesa Sande
Nyongesa Sandehttps://bizmart.africa
Nyongesa Sande is a Kenyan blogger, Pan Africanist,c olumnist Political Activist , blogger, informer & businesman who has interest in politics, governance, corporate fraud, human rights and television personality.

In this article we highlight steps on How to Apply for a SACCO Licence in Uganda. A credit union is a member-owned nonprofit cooperative financial institution.

Credit unions may offer financial services as commercial banks such as share accounts (savings accounts), share draft accounts (cheque accounts), credit cardscredit, share term certificates (certificates of deposit), and online banking. Normally, only a member of a credit union may deposit or borrow money. In several African countries, credit unions are commonly referred to as SACCOs (Savings and Credit Co-Operatives).

Worldwide, credit union systems vary significantly in their total assets and average institution asset size, ranging from volunteer operations with a handful of members to institutions with hundreds of thousands of members and assets worth billions of US dollars. In 2018, the number of members in credit unions worldwide was 375 million, with over 100 million members having been added since 2016.

Leading up to the financial crisis of 2007–2008, commercial banks engaged in approximately five times more subprime lending relative to credit unions and were two and a half times more likely to fail during the crisis. American credit unions more than doubled lending to small businesses between 2008 and 2016, from $30 billion to $60 billion, while lending to small businesses overall during the same period declined by around $100 billion. In the US, public trust in credit unions stands at 60%, compared to 30% for big banks. Furthermore, small businesses are 80% more likely to be satisfied by a credit union than with a big bank.

“Natural-person credit unions” (also called “retail credit unions” or “consumer credit unions”) serve individuals, as distinguished from “corporate credit unions“, which serve other credit unions

In order to be eligible, a society must have a sole aim of promoting economic and social interests of its members in accordance with cooperative principles and should be capable of promoting those interests.

It is apparent that SACCOs are governed by two separate laws, they are registered under the Cooperative Societies Act and licensed under the Tier 4 Microfinance and Money Lenders Act 2016 Act.

  • A SACCO shall not borrow an amount which in aggregate exceeds the limit prescribed by the Uganda Regulatory Microfinance Authority.
  • A SACCO shall provide financial services only to its members.
  • A SACCO which is licensed under this Act shall include the words “Savings and Credit Cooperative Society” or “SACCO” in its name.
  • Where the SACCO fails to pay the annual fee prescribed under subsection (1), the licence shall be cancelled.

Here is How to Apply for a SACCO Licence in Uganda.

  1. Licence or Permit to operate a SACCO can be obtained from Uganda Microfinance regulatory Authority.
    • A SACCO shall not carry on the business of financial Services unless it is-
      • a registered society; and
      • Licensed under the Act.
  2. Prepare the necessary background and relevant information then fill up the appropriate application form as described by the Microfinance Regulatory Authority.
    • The documents to be attached on the application form includes:
      • a certified copy of the certificate of registration issued under the Cooperative Societies Act;
      • the organizational structure and management of the registered society;
      • the business plan of the registered society;
      • the credit policies and lending policies of the registered society.
  3. After filling the form proceed to pay the prescribed fee.
  4. Submit the dully filled in form and attached with pay slip to the finance Officer in charge SACCO Registration.
  5. Ensure that the application fee is submitted and all required information is included with application.
  6. Collect your SACCO Licence certificate from where your application was submitted within 21 days from the date the application was received at Microfinance Regulatory Authority in case there is no rejection.

Required Documents to Apply for a SACCO Licence in Uganda.

  • Certified copy of the Certificate of Incorporation is issued under a Cooperative societies Act.
  • Certified copy of the tax Personal Identification Number PIN certificate.
  • Certified copy of the registered Memorandum and Articles of Association indicating core capital at least UGshs 5 million.
  • Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office,branches,agency and outlets,if any Registered Address(certified Copy)
  • Pay a non-refundable application fee of UGshs 50,000 to the Microfinance regulatory Authority.
  • Forms of particulars of directors and company Secretary (certified Copies Form) National Identity Cards for all the directors and company secretary
  • Certificates of good conduct for all the directors
  • Proof of payment of fees for application of the licence.
  • A copy of the interest rates according to the categories of loans products offered.
  • Memorandum and articles of association.(certified copy )
  • TIN Number and a business plan of the registered society.
  • Organisation Structure and management of the registered society.
  • Objective statement of the registered society in relation to offering financial services.
  • Credit policies and lending procedures of a registered society.


  • License Fee: 2,000,000 Ugshs
  • Renewal Fee: 2,000,000 Ugshs
  • Registration fee UGshs 50000 Account No.6000010330 Barclays Bank IPS Branch Account
  • Buy Co-operative Bye laws.
    • Shs.15000/= for savings & Credit bye laws
    • Shs. 10000/=for multi-purpose bye laws
  • Business name registration
    • Company/business name search registration fees Ugshs.2,200
    • Reservation of the name fees Ugshs.20,000.

Whom To Contact

Uganda Microfinance Regulatory Authority – HEAD OFFICE,
Physical Address: Rwenzori Towers, Block B
Ground Floor, Plot 6 Nakasero Road
Postal Address: P.O Box 11545
Kampala , Uganda
Call: 256 417 799 700
Toll – free: 0800 111 449
Email Us: info@umra.go.ug / enquiries@umra.go.ug
Website: LInk

Uganda Cooperative Saving and Credit Union (UCSCU)
P.O.Box 7103 Kampala.
Plot 239 Maganjo, Bombo Road, Kampala
Tel : +256 414 233 601,
Fax : +256 414 233 598
Email : info@ucscu.coop,
Website : Link

Registrar of cooperative societies
Ministry of Trade, Industry and Cooperatives,
Room 608, Floor 6, Farmers House,Parliament Avenue,
Po Box 7103 Kampala,
Tel: 0312 324 000/+256-312 324 268/230
Alt: 0414 230 916 Uganda
Website: Link

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