Bank of Uganda Deadline Looms as SACCOs Seek Phased Compliance

With the Bank of Uganda’s 1 October deadline fast approaching, large Savings and Credit Cooperative Organisations (SACCOs) face a critical test of compliance.

The central bank had earlier warned that SACCOs failing to secure licences by this date would be cut off from the commercial banking system losing access to bank deposits, mobile money transactions, and other financial services.

At a meeting on 23 September, Speaker Jacob Marksons Oboth proposed a phased compliance approach. He directed large SACCOs to pick application forms within seven days and demonstrate genuine efforts towards licensing by 31 March 2027. This move was intended to ease the transition while ensuring that SACCOs do not evade regulatory oversight.

Governor Michael Atingi-Ego, however, stressed that any extension must be matched by concrete action. He reaffirmed that the Bank of Uganda’s regulatory position remains in force, signalling that the 1 October restrictions will still apply to non‑compliant SACCOs.

The key question now is how the restriction will affect SACCOs that have entered the phased compliance process. According to the central bank’s stance, SACCOs that formally begin the licensing journey by collecting forms and showing verifiable progress may be allowed continued access to the banking system during the transition. Those that fail to take genuine steps risk immediate exclusion once the deadline passes.

In effect, the phased compliance pathway offers SACCOs breathing space, but it does not suspend the regulator’s authority. The Bank of Uganda is expected to monitor progress closely, ensuring that only SACCOs making tangible strides towards licensing retain access to financial services.