Kololo, Kampala: President Museveni has committed a staggering UGX 10.2 billion to boda boda Savings and Credit Cooperative Organisations (SACCOs) across the Kampala Metropolitan Area, with a firm directive that all loans under the scheme must carry no more than a 6% annual interest rate.
While meeting leaders of 102 SACCOs at Kololo on Sunday, September 21, the President announced that each group will receive UGX 100 million to support motorcycle taxi riders. He emphasized that the money is not intended for wealthy business people but for ordinary riders and warned against diverting the funds to moneylenders who trap beneficiaries in debt.
“I was pleased to meet with the Bodaboda leaders from the Kampala Metropolitan area today at Kololo. They represent 102 Saccos and I have contributed a total of Uganda Shillings 10.2 billion—100 million for each Sacco. These SACCOs are not for the Rich Business people “Abagagga” who are looking for profits but rather the motorcycle riders specifically intended to empower them,” the President stated in a post on X Sunday evening.
“Secondly, this money should not be given to money lenders, as their exorbitant interest rates are unacceptable. it should be used to pay for the value of the motorcycle the way it is,” he added.
Mr Museveni emphasized that the 6% ceiling is not meant for profit but to cushion riders from inflation and exploitation, pledging to formalize the directive in writing and threatening legal action against defaulters.
“This rate is not meant for profit but is intended to combat inflation. I will formalize this in writing, and anyone who defies it will face legal consequences.”
Museveni’s announcement was warmly received by boda boda leaders who described it as long overdue relief for riders struggling with exploitative hire-purchase schemes and predatory moneylenders.
Some, however, voiced caution, pointing to the need for transparent registration, auditing, and monitoring of SACCOs to ensure accountability and fairness in distributing the money.
On the other hand, economic analysts have welcomed the move as a step toward financial inclusion and formalisation of the sector but flagged implementation risks. They argue that without strict oversight, mismanagement could undermine the programme.
They also note that while 6% loans are affordable in principle, rising costs of fuel, spare parts, and motorcycle maintenance may still limit the scheme’s impact if not addressed in tandem.
Uganda’s boda boda industry employs over a million riders, most operating outside formal credit systems. Government has been pushing for their integration into registered SACCOs, with State House already mandating certification before disbursements.
The UGX 10.2 billion injection is the latest attempt to transform the industry into a more structured, sustainable sector.
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