The Minister of State for Microfinance Kyeyune Haruna Kasolo on Friday said Savings and Credit Cooperative Societies (SACCOs) have been exempted from paying taxes for a period of 10 years.
Kasolo made the remarks while addressing Association of Microfinance Institutions of Uganda
(AMFIU), during their Annual General meeting in Kampala.*
"Government has injected shs 141 billion for lending to SACCOs at 8 per cent interest rate. I expect the SACCOs to lend this money at an interest rate not above 12 per cent”, he said.
Kasolo further asked SACCOs to adhere to the Uganda Microfinance Regulatory Authority, in order to run their SACCOs within the legal regulations.
Outgoing AMFIU President Wilson Twamuhabwa enumerated challenges facing SACCOs to include; dependence on donor funding, fluctuating foreign exchange rates and the high cost of borrowing money among others.
“The fear by many Ugandans to borrow money is attributed to the high interest rates”, he said.
