By Asenath Were
For many people today, saving money is a helpful way to put some money away that they might need in the future for an emergency or to pay for a goal they have had, such as furthering their studies or building their house. However, saving on your own is not as easy to do. It takes discipline and commitment. This is why SACCOs Savings and Credit Cooperative Organizations are gaining popularity as they bring people together to help them save and access funds in an easy manner. Not to be left behind, the members within Uganda Christian University (UCU) have also established Saccos to build themselves financially. Among the SACCOs established within the university are the University Staff Savings Association (USSTA), Thornycroft SACCO (THOSA), and the University Senior Savers’ Association (USSA). These groups help members save their money, provide loans, and support the financial development of their members.
University Staff Savings Association (USSTA)
Founded in 2007, the Uganda Christian University Staff Savings Association (USSTA) was established to promote a savings culture among university staff. According to Joshua Alpha Abiyo, the association’s accounts assistant, USSTA aims to offer accessible financial services and development projects that will enhance the welfare of its members.
“The key objectives of USSTA are to encourage savings among participating staff members, offer competitive financial services, and create development opportunities that improve household incomes,” Abiyo explained, citing a brochure from the association. He further elaborated that the association collaborates with external organisations, including governmental and non-governmental institutions, to secure credit facilities that benefit the members.
Abiyo highlighted that members can save a portion of their salary each month, which they can later access when they leave UCU. “You can think of it as your retirement package after UCU,” he said.
Additionally, he says, USSTA offers loans at favourable interest rates after members have saved for six months. Short-term loans, with repayment periods of four to eight months, are available at interest rates of 5% to 10%, while long-term loans, payable over one to three years, have interest rates from 15% to 17%. Membership is voluntary and open to all UCU staff, with a one-time membership fee of Shs10,000. Members can choose to save between 5% and 20% of their gross salary, which is automatically deducted and remitted to the association by the payroll office.
On leaving UCU, staff can opt to remain as associate members of USSTA. “Once you exit UCU service, you have the option to stay connected to the association as an associate member,” Abiyo noted.
Thornycroft SACCO (THOSA)
Thornycroft SACCO, also known as THOSA, was born out of the financial challenges posed by the COVID-19 pandemic. Prim Tumuramye, the Chairperson of THOSA, explained that the idea to form the SACCO was first shared on June 16, 2020, by a member of Thornycroft Chapel, who saw the need for financial preparedness in the face of the pandemic.
An online meeting was held to discuss the idea, and an interim committee of five members was elected to spearhead the formation of the SACCO. “We resolved to name it Thornycroft SACCO and opened an account with Equity Bank to facilitate its operations,” Tumuramye said.
On September 1, 2020, THOSA was formally registered by the Ministry of Trade and Cooperatives under the name Thornycroft Chapel Kyaggwe Uganda Christian University Community Savings and Credit Cooperative Society Limited. The SACCO is currently seeking permanent registration.
With a growing membership level of over 200, THOSA offers a variety of financial services, including savings, loans for investment, home improvement, business recapitalization, school fees, and financial literacy training. The SACCO also caters to young savers with age-appropriate financial lessons.
Membership is open to all members of Thornycroft Chapel and the UCU community, including staff, students, and their children. The initial membership fee is Shs60,000, which includes Shs10,000 for membership, Shs10,000 for annual subscription, and Shs40,000 for two shares. Adult savers are required to purchase at least one share every two months and save a minimum of Shs10,000 monthly. For young savers, however, the requirements are more flexible, and their funds remain non-withdrawable until they reach 18 years of age.
Tumuramye emphasised the SACCO’s use of digital tools to keep members connected, even when they are outside the country. “We have a member currently studying in Germany who remains actively involved in the SACCO. We’ve also maintained connections with others outside Mukono,” she said.
University Senior Savers’ Association (USSA)
The University Senior Savers’ Association (USSA) was established to serve UCU employees aged 55 and above, providing them with savings and loans tailored to their needs. Acting Manager Justin Kantono explained that USSA was created to help senior staff members pool their resources together and benefit from collective financial planning.
USSA is unique in that it offers members quicker access to their savings compared to the National Social Security Fund (NSSF). “If a member is sick, they can easily access their funds, unlike with NSSF, where the process of withdrawing money is lengthy,” Kantono noted.
The association invests its members’ funds in low-risk ventures, such as unit trusts, which allow members to access their money within two days of a request. USSA also offers loans based on a member’s savings, which are repaid in installments as outlined in the loan agreement.
Initially limited to UCU staff, USSA is considering expanding its membership to include the wider community. “We hope to allow anyone willing to join and access our services, provided they have some form of security,” Kantono explained. However, this change is yet to be formalised in the association’s constitution.
For UCU staff members, the repayment of loans is deducted directly from their salary, making the process secure and convenient. The association is exploring ways to ensure similar security for external members once the membership is expanded.
