Uganda State House: Warns Skilling Hub SACCOs on Fund Mismanagement

• Uganda's State House Comptroller Jane Barekye warned beneficiaries of Presidential Industrial Skilling Hubs against misusing government startup loans.
• Future funding increases from President Museveni are contingent on the proper management of existing Shs50 million district SACCO revolving funds.
• A finance manager, Ronald Aroho, has been deployed to strengthen supervision and track fund utilization, working with district commercial officers.
• SACCO leaders reported challenges including beneficiaries lacking National IDs, hindering loan access, and requested a review of requirements.
• Beneficiaries shared success stories, with some establishing businesses but also requesting larger loan amounts to cover startup costs.

State House Comptroller Jane Barekye emphasized that any future increase in funding from President Yoweri Museveni to graduates' SACCOs is strictly conditional on the diligent stewardship of existing revolving funds.

The Uganda State House has issued a stern warning to beneficiaries of the Presidential Industrial Skilling Hubs regarding the proper management of government startup loans. State House Comptroller Jane Barekye emphasized that any future increase in funding from President Yoweri Museveni to graduates' SACCOs is strictly conditional on the diligent stewardship of existing revolving funds. This directive underscores a critical focus on financial discipline within these programs, which are designed to empower skilled youth across the nation.

Each district SACCO initially received Shs50 million, a pilot intervention aimed at enabling graduates to transform their newly acquired skills into viable, sustainable businesses. Barekye, speaking at a stakeholders' engagement on Tuesday, August 18, 2026, at the Tooro Zonal Presidential Industrial Skilling Hub in Kyenjojo District, stressed the importance of investing these funds in legitimate projects. She explicitly cautioned against using the loan capital for personal expenses, such as bride price, before businesses generate profits, stating, "Please don't play with the President's money."

The meeting, which convened State House officials, political and technical leaders, SACCO executives, and beneficiaries, served to evaluate the skilling program's performance and the utilization of its revolving fund. The Tooro hub specifically caters to seven districts and cities: Kyenjojo, Kyegegwa, Kamwenge, Fort Portal City, Bunyangabu, Kitagwenda, and Kabarole. The State House, in collaboration with local leaders, is actively assessing the program to pinpoint challenges and ensure that these vital funds achieve their intended developmental objectives.

In a move to bolster the Uganda SACCO revolving fund management, State House Comptroller Jane Barekye urged local leaders to closely monitor district SACCOs. This oversight is crucial to guarantee that funds reach their intended beneficiaries and are invested precisely in the enterprises for which they were borrowed. To further enhance accountability, a finance manager, Ronald Aroho, has been deployed to intensify supervision of SACCO operations and meticulously track the utilization of these revolving funds.

Aroho has committed to collaborating with SACCO leaders, district commercial officers, and other key stakeholders to improve financial accountability. Barekye specifically instructed him to integrate with existing district commercial officers rather than establishing a separate, parallel supervision system. Additionally, district leaders were encouraged to conduct unannounced visits to the hubs, reinforcing the message that "This is your project; don't let it die. The President has invested a lot in it."

Beyond financial monitoring, Barekye challenged local governments to actively support graduates by awarding them contracts for products they are trained to produce, such as school desks and beds. For larger contracts, she advocated for contractors to employ youth trained at the hubs. Communities were also encouraged to leverage the four-acre model farm situated at the hub to acquire practical knowledge in commercial agriculture, including fish farming, further diversifying the program's impact.

Despite the program's ambitious goals, SACCO leaders highlighted several challenges impeding access to the Uganda government startup loans. Mulungi Kenneth, chairperson of the Kabarole District Hub SACCO, reported that while 36 graduates had accessed the revolving fund, some beneficiaries faced difficulties due to the lack of National Identification Cards, which restricted their ability to secure loans. Similarly, Akampulira Everest, chairperson of the Kamwenge District Hub SACCO, noted that 13 beneficiaries had successfully received and invested their loans in intended projects, but registration requirements, including access to Wendi services, remained an obstacle for some youth without National IDs. SACCO leaders have since appealed to the State House to review these requirements, proposing that graduates whose identities and training status can be verified should still be granted access to the funds.

Conversely, beneficiaries shared compelling stories of how the program has positively transformed their lives. Janet Kabasiita, a tailoring graduate from Kitagwenda, recounted her struggles to find employment due to a lack of formal academic qualifications. After completing her training, she secured a Shs560,000 SACCO loan, which enabled her to start earning from tailoring. However, she requested larger loans, explaining that the current amount was insufficient to cover the costs of purchasing a sewing machine, renting premises, and acquiring adequate materials.

Another success story came from Jordan Abenitwe, a carpentry graduate also from Kitagwenda, who received Shs1.35 million. This funding allowed him to establish his own workshop, where he now produces beds at approximately Shs180,000 each, selling them for between Shs250,000 and above. These individual testimonies underscore the significant impact of the Presidential Industrial Skilling Hubs Uganda program, even as it grapples with administrative hurdles and calls for increased financial support.

Compliance officers and legal counsel advising SACCOs or beneficiaries of Ugandan government skilling programs should note the heightened scrutiny and monitoring of revolving funds, necessitating strict adherence to financial discipline and accountability to avoid misuse allegations and ensure continued funding eligibility.

Source: Original reporting via the source article