The government has directed the newly inaugurated Board of Directors of Cooperative Savings and Credit Union (Walimu) to revive dormant teachers' Saccos across Uganda and recover more than Shs11 billion in defaulted loans.
The board has until March 31, 2027, to recover at least 80 percent of the outstanding loan portfolio as part of broader efforts to restore confidence in the teachers' cooperative movement.
Having injected Shs27 billion into Walimu Teachers Sacco, the Ministry of Trade, Industry and Cooperatives is demanding greater accountability in the management of the institution.
Government officials said that of the Shs27 billion invested in the Sacco, Shs11 billion remains tied up in loan defaults by teachers across the country, significantly weakening the institution's ability to serve its members and promote financial inclusion.
Speaking during the inauguration of the new Board of Directors in Kampala, Robert Bariyo Barigye, Commissioner for Cooperatives Policy and Development at the Ministry of Trade, Industry and Cooperatives, emphasised the urgency of improving governance and recovering the outstanding funds.
"The board has been tasked with strengthening supervision, improving governance, and ensuring recovery of the outstanding funds lost through poorly managed Sacco lending," Bariyo Barigye said.
He also revealed the extent of the challenges facing teachers' Saccos across the country.
"Only 39 out of the 385 registered teachers' Saccos are currently active. This is a wake-up call for stronger monitoring and better leadership within the cooperative movement," he added.
The newly inaugurated Board Chairperson, Steven Olinga, acknowledged the responsibility entrusted to the board and pledged to restore confidence in the institution.
"We accept this challenge with full commitment. Our priority will be to restore trust among teachers, revive dormant Saccos, and ensure that public funds injected into the sector deliver value to members," Olinga said.
Walimu Sacco General Manager Caroline Atai challenged the new board to deliver measurable results by strengthening governance and improving operational efficiency.
"We expect the board to restore the Sacco's credibility by reviving inactive societies, strengthening technology-driven financial systems, and putting in place robust measures that will minimise future loan defaults," Atai said.
The recovery of defaulted loans and the revival of dormant Saccos are regarded as critical steps towards rebuilding Uganda's teachers' cooperative movement, which has been affected by governance challenges and a poor loan repayment culture.
Government officials said the performance of the new board will be measured not only by the amount of money recovered but also by the number of dormant Saccos revived and improvements in service delivery to teachers across the country.
