
KOLOLO, KAMPALA – In a significant move aimed at empowering motorcycle transport operators, President Yoweri Museveni today met with Bodaboda leaders from the Kampala Metropolitan area at Kololo Ceremonial Grounds and announced a substantial financial injection of Shillings 10.2 billion into their Savings and Credit Cooperative Organizations (SACCOs).
The meeting, which was attended by representatives from 102 registered SACCOs, culminated in the President’s pledge to contribute Shs 100 million to each individual association. The President was clear that this initiative is specifically designed to uplift the riders, whom he distinguished from wealthy businesspeople.
“These SACCOs are not for the Rich Business people—’Abagagga’—who are looking for profits,” President Museveni stated. “They are rather for the motorcycle riders specifically intended to empower them.”
The President issued a stern warning against the misuse of the funds, explicitly directing that the money should not be channeled to existing money lenders. He condemned the practices of these lenders, describing their interest rates as “exorbitant” and “unacceptable.”
“This money should be used to pay for the value of the motorcycle the way it is,” he directed, emphasizing that the capital is intended to help riders fully own their assets and break free from burdensome debt cycles.
In a move that is set to revolutionize financial access for the sector, President Museveni laid down a strict mandate on lending terms. He declared that loans disbursed from these SACCOs should carry a maximum annual interest rate of only 6%.
He clarified that this nominal rate is not intended for profit-making but is solely to combat the effects of inflation and ensure the sustainability of the SACCOs’ capital.
To ensure compliance, the President vowed to formalize this directive in writing, attaching legal consequences for any SACCO or individual found defying the order.
“I will formalize this in writing, and anyone who defies it will face legal consequences,” he emphasized.
This announcement has been met with widespread approval from the Bodaboda community, who have long grappled with high-finance costs and predatory lending practices. The initiative is seen as a direct intervention to bolster the economic resilience of a vital sector within Uganda’s informal economy.