Kampala, Uganda | The Government of Uganda has launched a new financial empowerment initiative for students in national skilling centres following the mismanagement of UGX 200 million under the previous SACCO model.
The overhaul was announced by Dr. Faith Katana Mirembe, Head of the Skilling the Girl and Boy Child programme, during a stakeholder engagement held at the Mulago Skilling Centre.
Dr. Katana explained that the earlier model, which had provided direct startup capital of up to UGX 1 million to pioneer students in 2017, became unsustainable due to the increasing number of trainees and shrinking budget allocations.
She clarified that direct incentives had been discontinued but noted that many programme graduates had successfully found employment or started businesses.
She further revealed that the previous student SACCO model had failed after UGX 200 million was misused, prompting the government to overhaul the financial structure and develop a new system.
She added that the President had instructed for the creation of new SACCOs specifically designed for skilling students and confirmed that implementation would begin immediately.
The new initiative is being supported by the Microfinance Support Centre (MSC), which is conducting training in financial literacy, savings culture, and SACCO governance.
Students at Mulago Skilling Centre have already received training on how to use funds responsibly and manage cooperative finances.
The reformed SACCO model is initially being rolled out in six major skilling centres across Kampala: Wabigalo, Kigoowa, Mutundwe, Kikoni, Mulago, and Wandegeya.
These centres will serve as pilot sites before the programme expands nationally.
Dr. Katana stressed that the focus had shifted away from individual cash handouts to the establishment of structured financial cooperatives capable of providing long-term support and access to credit for entrepreneurial ventures.
Several trainees and alumni at the event shared experiences of how the skills acquired through the programme had helped them secure jobs or start small businesses, highlighting the potential impact of the programme when paired with proper financial systems.
The government views this restructuring as part of a broader effort to enhance accountability and ensure value for money in public programmes, especially those aimed at youth empowerment.
