Uganda Tasking New Board to Recover Shs11 Billion in Teacher Loans

A significant sum of over Shs11 billion in public funds meant for teachers’ loans remains unrecovered, prompting government intervention. The Ministry of Trade, Industry, and Cooperatives, which previously invested Shs27 billion into the Walimu Co-operative Union Ltd to enhance teachers’ financial welfare, is now demanding strict accountability from the union’s newly appointed board.

The primary objective for the new leadership is to reclaim the substantial amount of defaulted loans. This financial recovery is critical for Walimu’s mission to promote financial inclusion among educators.

The government has set a firm deadline of March 31, 2027, for the board to recover at least 80 percent of these outstanding loans. This initiative is part of a larger government strategy to rebuild trust and efficiency within the teachers’ cooperative movement.

Robert Bariyo Barigye, the commissioner for cooperatives policy and development, stressed the necessity of structural reforms. He stated that the board must focus on strengthening oversight, improving governance, and ensuring the recovery of funds lost due to mismanagement within the lending Saccos.

Compounding the issue, it was revealed that a large number of teachers’ Saccos, specifically 346 out of 385 registered, have become inactive or collapsed. Only 39 Saccos are currently operational, highlighting a systemic challenge in the sector.

The new board chairperson, Steven Olinga, has pledged commitment to addressing these challenges. He aims to restore confidence among teachers, reactivate dormant Saccos, and ensure that the government’s investment yields tangible benefits for the members.

Recommendations from the union’s General Manager, Caroline Atai, include the adoption of modern tracking tools and digitization of financial systems to prevent future losses and minimize defaults through robust vetting processes.