EDITOR
Kebison SACCO held its 22nd Annual General Meeting (AGM) at its headquarters in Kebisoni Town Council, Rukungiri District.
The SACCO, which was established in 2001, operates two branches—one in Mabanga Trading Center, Rukungiri District, and another in Nyamunuka Town Council, Ntungamo District—alongside several outreach centers. It currently boasts a membership of 9,647 and total liabilities amounting to 12.6 billion Uganda shillings.
As of 2024, the SACCO recorded 33% growth in savings, a 33.2% loan portfolio, a 20% share capital, and a 58.04% surplus. However, during the meeting, Rev. Fr. Safari Emmanuel expressed concern over loan defaulters who deliberately fail to repay their loans, warning that such actions jeopardize the SACCO’s operations. He also urged members to embrace a stronger saving culture to ensure financial stability.
In an effort to expand its services, the chairperson announced plans to establish a branch in Rukungiri Municipality and an outreach center in Rwerere Town Council. These proposals were approved by the delegates.
Among the notable achievements discussed at the meeting was the revision of the SACCO’s Credit Lending Manual. Under the new guidelines, the credit period has been increased to 48 months for loans between 30 million and 50 million Uganda shillings. Loans amounting to 100 million Uganda shillings and above will now have a repayment period of up to 60 months, based on an appraisal report. This adjustment aims to minimize risk and enhance turnaround time.
The Board of Directors (BOD) also recommended the declaration of dividends amounting to 2,076 Uganda shillings per share for the financial year 2024. With 248,347 qualifying shares, the meeting resolved to allocate 20% of the earnings as retained earnings, 40% as a capital development reserve fund, and the remaining 40% as dividends to shareholders.
Habert Musasizi, the head of the SACCO Advisory Committee, highlighted key issues affecting members, as observed during field visits. He noted that some borrowers had diverted loan funds to activities different from those stated in their applications, leading to repayment challenges. He also pointed out liquidity challenges within the SACCO, which have affected loan disbursement. Additionally, he raised concerns over dormant accounts and the low-saving culture among members, urging them to take proactive measures to address these issues and ensure financial sustainability.
While addressing the delegates, Rukungiri District Chairperson Geoffrey Kyomukama, who is also a founding member of Kebison SACCO, commended the SACCO for its exceptional performance and commitment to accountability and transparency, which have contributed to its growth. He encouraged members to seek more support from the government, emphasizing that it is willing to back such initiatives.
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