Kabale Chairman Questions Shs13.59 Billion Agricultural Credit Fund Usage

Denis Nzeirwe, the LC5 Chairman for Kabale District, has voiced strong doubts about the effective use of Shs13.59 billion reportedly allocated to Kabale under the Agricultural Credit Facility (ACF). Nzeirwe’s skepticism stems from a lack of visible positive impact on farmers within the district, despite the substantial sum allegedly disbursed.

The concern was highlighted after Bank of Uganda Deputy Governor, Prof. Augustus Nuwagaba, announced that 325 beneficiaries in Kabale had accessed the Shs13.59 billion through the ACF, intended to boost agricultural production and agro-processing. The government’s contribution to this financing amounted to Shs6.81 billion.

During the same town hall meeting where these figures were shared, Prof. Nuwagaba also noted that Shs636 million had been disbursed under the Small Business Fund (SBF) to 70 individuals in the district, with the government matching half of this amount at Shs318 million. He urged district leaders to actively promote these financial schemes to eligible farmer groups, SACCOs, and youth and women enterprises.

While the ACF is designed to support investments in machinery, post-harvest handling, infrastructure, and value addition, and the SBF aims to help small businesses recover and expand, Nzeirwe questioned the actual investment activities funded. He stressed that substantial investment should lead to observable improvements in the agricultural sector.

Nzeirwe called for increased transparency in how commercial banks disburse these government-backed funds and select beneficiaries. In response, Prof. Nuwagaba assured that the Bank of Uganda would collaborate with commercial banks to trace the investments and verify if the funds reached the intended recipients. Efforts are underway to gather detailed information on beneficiaries, amounts received, and the physical locations of their investments.