Chapter 17: Savings Groups in Uganda

Savings groups (SGs) are widespread in Uganda. The naming and practices may differ. The rationale of SGs is historically rooted in the communal economic stability. People pooled resources to support each other, including labour for agriculture, construction of houses, and hunting, among other economic activities. There are different terms used in local languages to refer to the SGs – Ekibiina (Luganda) and Ekitebe (Runyoro-Rutooro). The groups adopt names that reflect their focus or interest or geographical location. In Central Uganda, groups may have different names, such as Kweyamba (Self-help), Agaliawamu (Togetherness), Tweyambe (Let's help each other) and Tukolelewaamu (Let's work together). These groups are active across the country in different modes of formation and operations. The majority are informal and not registered. Some groups are active around specific economic activities or events, like harvesting season, gardening or fishing communities. Some groups are informal SGs, others formal. Many of these operate in state-owned organisations. Formal SGs operate according to a formal procedure. Savings and Credit Organizations (SACCOs) are governed by the Cooperatives Act CAP112, SACCO By Laws, Cooperative Regulations 9531 and Tier 4 of Financial Institutions. The Director/Registrar of Co-operatives under the Ministry of Trade, Industry and Co-operatives of the Republic of Uganda oversees the activities of the SACCOs.