Museveni Pledges Shs1bn Boost for Mechanics’ SACCOs in Kampala

President Yoweri Kaguta Museveni has pledged to inject Shs1 billion into each mechanics’ Savings and Credit Cooperative Organisation (SACCO) operating within Kampala, in a move aimed at strengthening the informal automotive sector and improving access to affordable financing.

The commitment was made during a meeting with mechanics and garage operators drawn from the city’s five divisions. The President said the funding will help mechanics acquire modern tools, expand their businesses, and reduce dependence on expensive informal loans.

According to Museveni, the funds will be channeled through unified SACCOs in each division, allowing members to access loans at low interest rates estimated at about six percent annually. Individual mechanics will be able to borrow amounts ranging from hundreds of thousands to several million shillings, depending on their needs and repayment capacity.

The President noted that the new pledge follows an earlier allocation of Shs100 million per SACCO, which he acknowledged was insufficient to address the sector’s growing financial demands. He urged mechanics to maintain discipline and transparency in managing the new funds to ensure long-term sustainability.

Beyond Kampala, Museveni said the initiative will be extended to Wakiso and Mukono districts, with each district also set to benefit from Shs1 billion under the same arrangement.

The President also revealed plans for the establishment of government-supported modern garages and shared service centers, equipped with specialized machinery to be used collectively by mechanics. He emphasized that such facilities would remain government property and be managed for public benefit.

Museveni further directed government officials to review how previous financial support given to mechanics’ associations had been utilized, stressing the importance of accountability in public programs.

The initiative was welcomed by sector leaders, who described it as a timely intervention that recognizes the vital role mechanics play in keeping Uganda’s transport and commercial sectors running.