UGANDA’S COOPERATIVE MOVEMENT CHARTS BOLD NEW PATH WITH FORMATION OF NATIONAL COOPERATIVE BANK
Kampala, Uganda – June 17, 2025 —Cooperators from across the country convened today to take decisive steps towards the formalization and operationalization of the long-awaited National Cooperative Bank. The meeting, which was held at Uganda Cooperate Alliance, brought together key figures from the cooperative movement, government, and financial sector in a unified call to build a bank for cooperators, by cooperators.
Mr. Ivan Asiimwe, the General Secretary of UCA, said “We must move beyond endless discussions. Tanzania launched its cooperative bank in April this year. Kenya has had one since 1966. Uganda cannot afford to lag behind.” He applauded regions like Kigezi, where SACCOs have already pledged financial support to the cause, and expressed gratitude to Hon. Agnatius Odimi, former Vice Chair of the Budget Committee in Parliament and Member of Parliament for Elgon Region, for championing the subvention support for UCA.
While delivering the keynote address, Hon. Minister Gume inspired the audience with a bold statement: “The time is now!” He emphasized that the establishment of a cooperative bank does not require Bank of Uganda approval under the Tier 4 framework, a structure deemed most feasible at this stage. He advised cooperators to move “cautiously but swiftly” in a competitive liberal economy, and even proposed that the bank be headquartered at the UCA building. “If we approach this with discipline, I am confident it will succeed,” he added.
The UCA led by example by committing UGX 10 million towards the bank’s capitalization, alongside pledges to provide office space, a vehicle, and initial staffing support. This gesture sparked a wave of financial commitments from SACCOs and cooperatives across the country, to a tune of over UGX 60 Million. Notable contributions included UGX 10 million from Hima SACCO, UGX 5.1 million from Banyankole Kweterana, and UGX 5 million each from Father’s SACCO and the Middle North Cooperative Union.
Mr. Asiimwe also gave a comprehensive presentation on Uganda’s financial sector, outlining the tiers of banking and emphasizing why starting with a Tier 4 cooperative structure is both practical and legal. “We need to begin where we are strongest — among ourselves — and grow from there,” he advised.
Guidance from the Registrar of Cooperatives reinforced this direction, noting that the Kenyan Cooperative Bank is 99% owned by cooperators — a model Uganda should emulate. The Registrar proposed a vision for the new bank: “To be the leading, trusted, resilient and transformative financial institution in Uganda and the region based on a unique cooperative model providing innovative financial solutions to her clientele.”
With spirited engagement from participants, the meeting passed several critical resolutions. The bank will be registered as National Financial Cooperative Society Ltd, with an eye on upgrading in future to become The National Cooperative Bank of Uganda. The share value was set at UGX 100,000 with a minimum holding of 10 shares per member. A 14-member steering committee was confirmed to guide the registration and formation process, with the bank’s reach envisioned to cover the entire country.
The meeting concluded with closing remarks from Hon. Odimi, who thanked all participants for their unwavering commitment. “Let us join voices and resources to see this bank thrive. Let us be positive and build an institution that reflects our values,” he said.
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