President Museveni has handed over Shs10.2 billion to Boda Boda SACCOs in the Kampala Metropolitan Area to support more than 400,000 motorcycle operators across the districts of Kampala, Wakiso, and Mukono.
The funds, distributed to 102 Boda Boda SACCOs, are aimed at enabling riders to acquire new motorcycles at affordable rates while reducing dependence on exploitative money lenders.
Each SACCO will receive Shs100 million, with riders expected to purchase motorcycles at the current market value of Shs5 million and an interest rate capped at 6% per annum.
During the handover ceremony at Kololo Independence Grounds, President Museveni explained that the proposed interest rate was not meant for profit but was instead intended as a measure to control inflation.
He noted that Uganda’s inflation rate stands at 3%, and the 6% rate was a carefully considered balance to protect both borrowers and the economy.
He further warned SACCO leaders and members against mismanaging the funds, vowing to hold accountable anyone found to have misused the support.
The President recalled previous incidents where Boda Boda funds were misappropriated and ordered investigations into the mismanagement of the 2011 SACCO funds.
He made it clear that this fresh injection of support must not be used to settle old debts with money lenders, but rather to provide a clean start for the sector.
Museveni also emphasized the need to professionalize the Boda Boda industry.
He instructed SACCO leaders to work with the government in training riders to improve road discipline, reduce accidents, and restore public trust in the industry.
He also addressed concerns regarding the digital number plate program, saying it had been infiltrated by corrupt individuals who imposed excessive penalties. The system, he assured, would be restructured to eliminate exploitation.
Minister for the Presidency Babirye Milly Babalanda echoed the President’s message, assuring Boda Boda riders of continued government support and urging them to rally behind the NRM government in the upcoming elections.
She cited several reforms and interventions aimed at improving their livelihoods, including the reduction of motorcycle permit fees from Shs500,000 to Shs100,000, ongoing road infrastructure improvements, the establishment of Boda Boda Emyooga, and the new Shs10.2 billion funding initiative.
Minsa Kabanda, Minister for Kampala Capital City and Metropolitan Affairs, urged riders to embrace government programs and safeguard the continuity of the NRM’s development agenda.
She praised President Museveni for prioritizing the informal sector and recognizing the vital role of the Boda Boda industry.
Kabuye Kyofatogabye, Minister of State for Kampala, highlighted the economic importance of the Boda Boda sector and said that the government is committed to ensuring its proper regulation and organization.
He revealed that Kampala Capital City Authority has set up 70 committees across the metropolitan area to provide guidance and oversight for the sector.
Speaking on behalf of the Boda Boda operators, Frank Mawejje, Chairperson of riders in the Kampala Metropolitan Area, welcomed the government's support.
He confirmed that the funds would be used to purchase motorcycles directly from manufacturers, helping riders avoid predatory money lenders.
Mawejje thanked President Museveni and acknowledged the role played by State House Comptroller Jane Barekye, Gen. Christopher Ddamulira, and Maj. Emma Kuteesa in organizing and streamlining the sector