Deputy Speaker Tayebwa Urges Parliamentary SACCO to Explore Establishing a Bank

During the 19th Annual General Meeting (AGM) of the Parliamentary Saving and Credit Cooperative Organisation (SACCO), Deputy Speaker Thomas Tayebwa encouraged the organization to contemplate establishing a bank in light of its substantial asset growth. The SACCO’s assets have surged from Shs47 billion in 2022 to Shs67 billion this year, as reported by Hon. Robert Migadde, the SACCO’s Board Chairperson.

Tayebwa commended the impressive growth and challenged the SACCO management to aim for bank ownership within the next five years. He suggested a straightforward approach, proposing that the SACCO acquire a holding company to own the bank while the SACCO continues its existing operations.

Expressing his concern about the savings culture among Members of Parliament (MPs) and staff, Tayebwa called for a shift towards embracing a more proactive saving culture. The SACCO is set to diversify its investment strategy by venturing into government bonds, following the Board’s recommendation adopted during the AGM.

Migadde disclosed that the SACCO had invested in fixed deposits with commercial banks, unit trusts, and land, with Shs12 billion in fixed deposits, Shs10 billion in unit trusts, and Shs8.2 billion in land as of June 2023. The SACCO’s savings increased to Shs47 billion from Shs29 billion in 2022, and loans rose to Shs33 billion from Shs25 billion in 2022.

The SACCO, boasting a membership of 1,504, which includes current MPs, former MPs, and Parliament staff, also accumulated Shs2.1 billion in capital reserves from tax waiver savings secured in 2018.

Peter Kimbowa, the Board Chairperson of the National Social Security Fund, advised the SACCO leadership to explore international funding opportunities for sustainability, emphasizing the potential for accessing significant financing from global organizations.