STATEMENT ON THE EXTENSION OF LICENSING DEADLINE FOR LARGE SACCOs

6TH MARCH 2026, KAMPALA
The Uganda Cooperative Alliance (UCA) welcomes the recent announcement by the Bank of Uganda extending the deadline for the licensing of large Savings and Credit Cooperative Societies (SACCOs) to 30 September 2026, from the earlier deadline of 31 March 2026.
This development marks an important milestone following sustained engagements by the cooperative movement with government and key stakeholders regarding the implementation of licensing requirements for large SACCOs under the Microfinance Deposit-Taking Institutions Act and the Microfinance Deposit-Taking Institutions (Registered Societies) Regulations, 2023.
Over the past months, UCA, together with leaders from the cooperative movement, raised concerns about the regulatory transition affecting large SACCOs. While the sector fully recognizes the importance of financial oversight and regulatory compliance, it was necessary to ensure that the licensing process takes into account the unique nature of cooperatives as member-owned financial institutions that mobilize and lend funds primarily among their members.

In response to these concerns, the cooperative leadership engaged Parliament and subsequently held a high-level meeting with H.E. the President of the Republic of Uganda, who acknowledged the importance of the cooperative model in advancing financial inclusion and grassroots economic development. During these engagements, it was emphasized that the regulatory framework governing SACCOs requires harmonization with existing cooperative laws to avoid duplication of mandates and ensure clarity for the sector.

Following these consultations, the President guided that the matter be carefully reviewed and that adequate time be provided for further stakeholder engagement and policy alignment.

The extension announced by the Bank of Uganda is therefore a welcome outcome of this constructive dialogue.
According to the Bank of Uganda notice, the extension is intended to allow for continued stakeholder engagement, further sensitization on regulatory oversight, and adequate preparation by eligible SACCOs to complete the licensing requirements. During this period, financial service providers have also been advised to continue supporting SACCOs as they prepare for compliance.

For the cooperative movement, this extension provides an important breathing space for SACCOs to better understand the regulatory framework, strengthen their internal systems, and prepare the necessary documentation required for licensing.

The Uganda Cooperative Alliance reiterates that cooperatives are not opposed to regulation. On the contrary, the movement supports regulatory frameworks that enhance transparency, protect members’ savings, and strengthen institutional credibility. However, such frameworks must be implemented in a manner that recognizes the cooperative model and promotes the growth of SACCOs as critical drivers of financial inclusion.
SACCOs continue to play a vital role in Uganda’s economic landscape, providing accessible financial services to millions of Ugandans, particularly in rural and underserved communities. Ensuring that the regulatory environment supports their sustainability and growth remains a priority for the cooperative movement.

UCA therefore commends the Government of Uganda, the Bank of Uganda, Parliament, and all stakeholders who have engaged in constructive dialogue on this matter. We remain committed to working closely with regulators and policymakers to ensure that the final regulatory framework strengthens both financial stability and the cooperative movement.

As the licensing process continues during this extended period, UCA will continue mobilizing and guiding SACCOs across the country to prepare for compliance while also engaging government and all stakeholders to advocate for a harmonized regulatory framework that protects the cooperative identity and promotes inclusive economic development.

Management
Uganda Cooperative Alliance