Striking Arts teachers under the Uganda Liberal Teachers Union (ULITU) have received a major boost after their union SACCO began disbursing low-interest loans to help them invest in income-generating ventures as they await government salary enhancements.
The SACCO is offering the loans at an annual interest rate of 10%, with repayments deducted monthly based on each teacher's net salary.
“This means we compare what a member takes home and deduct 10% every month until the loan is cleared,” said Andrew Kwete, chairperson of the ULITU SACCO board.
The financial relief comes nearly two years after President Museveni, during World Teachers’ Day celebrations in 2023, pledged Shs6.6 billion to ULITU as part of a broader promise to fund three major teachers’ unions.
The pledge was meant to improve the welfare of teachers across the country.
However, in November 2024, when the funds were disbursed, Shs4.6 billion was allegedly misappropriated by the then ULITU chairman and secretary.
According to Kwete, the matter was reported to President Museveni, the Kampala Metropolitan Police, and the State House Anti-Corruption Unit, leading to the arrest and remand of the suspects as their trial continues in court.
To mitigate the impact of the lost funds and support members in need, the union resolved during its February annual general meeting to lend out the remaining Shs2 billion to teachers.
More than Shs700 million has been disbursed to teachers in the central, eastern, and western regions, with plans to reach the northern region soon.
“With the little funds that remained on the account, I am glad to report that we have dispensed Shs536 million in the central and eastern regions, and today, in the western region, we have disbursed UGX 150 million,” said Kwete.
Teachers who have received the loans expressed hope that the funds will help them improve their living standards while the strike continues. Some are already pausing strike activities to pursue income-generating opportunities.
Denis Mwebaze, ULITU’s Western Region coordinator, encouraged teachers to use the funds wisely.
“Even though some of our Arts teachers are still on strike, many have regained hope through these loans and are now shifting focus to investments that can help them join the money economy,” he said.
Only teachers who subscribe to ULITU and its SACCO are eligible for the loans, which operate as a revolving fund.
Still, Kwete acknowledged that the available funds may not be sufficient to cover all members.
He called on the judiciary to expedite the trial of the former union leaders to recover the lost money.
The loans offer a crucial lifeline for teachers who have endured long-standing income disparities and delays in salary enhancement, especially when compared to their science counterparts.