Hoima Welders Emyooga SACCO grapple with loan recovery
She confirmed that UGX 26 million is currently tied up in long-outstanding loans, severely limiting access to credit for other members.
Hoima: The Hoima East Welders Emyooga SACCO is grappling with rising loan defaults among its members, threatening the sustainability of its financial operations. This was revealed during their 4th Annual General Meeting held at the Red Cross Hall on Tuesday.
According to David Muhumuza, the Senior Commercial Officer of Hoima City, the SACCO received UGX 50 million as seed capital from the government. However, only UGX 3.7 million is currently in active loans, while the rest sits idle in the SACCO account, signaling poor engagement in savings and share purchases among members.
Peter Agugizibwe, the SACCO Chairperson, expressed concern over ten members who have defaulted for over three years, showing no signs of repayment. He highlighted a worrying mindset among some members who believe the Emyooga funds were merely a “token of appreciation” from President Museveni for their political support of the NRM, rather than a repayable loan.
Treasurer Winnie Mbabazi confirmed that UGX 26 million is currently tied up in long-outstanding loans, severely limiting access to credit for other members.
In response, Geofrey Nyakairu, chairperson of Bwikya Ward Welders’ Association, stated that they will increase efforts to personally reach defaulters and negotiate repayment terms. Should that fail, they plan to escalate the matter to the Microfinance Support Center and security agencies.
Agrey Muhumuza from the Microfinance Support Center reaffirmed their commitment to training SACCO members in financial literacy and encouraged them to benchmark successful SACCOs to improve their operations.
Barnabus Tugume, the Assistant RCC for Hoima East, emphasized the need for proper loan planning and announced plans for sensitization campaigns to promote responsible loan usage.
He urged SACCO leaders to report persistent defaulters for legal action.
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