Uganda Professional Science Teachers' Union – UPSTU

3rd UPSTU Members’ SACCO AGM Highlights and Policies – ProDev Hour 9/01/25 Speaker: Luyima Edward

This ProDev Hour session provided insights into the 3rd Annual General Meeting (AGM) of the UPSTU Members’ SACCO, a remarkable event that brought together members and stakeholders to discuss the growth, achievements, and future plans of the SACCO. Led by National Secretary Edward Luyima, the session provided valuable insights into the SACCO’s operations, financial performance, and its strategic vision.

Here’s a detailed overview of the discussions and key takeaways:


What is UPSTU SACCO?

UPSTU SACCO, short for Saving and Credit Cooperative Organization, was established to empower science teachers in Uganda through financial services tailored to their needs. Unlike traditional banks, SACCOs offer a sense of community, flexible terms, lower fees, and membership benefits, making them a preferred choice for many.

Luyima emphasized the importance of saving before spending, highlighting that SACCOs foster financial discipline and enable members to access affordable credit. The cooperative model ensures that members have ownership, participate in decision-making, and enjoy shared prosperity.


Key Highlights from the AGM

1. Membership Growth and Achievements

  • Membership has grown significantly, surpassing 500 active members.
  • A notable increase in the loan portfolio, showcasing the SACCO’s commitment to responsible lending.
  • Consistent growth in share capital and savings, driven by member trust and contributions.

2. Financial Performance

  • The SACCO declared profits of UGX 61 million for 2023, with UGX 25 million retained and UGX 36 million distributed as dividends.
  • Each share earned a dividend of UGX 8,024, reflecting strong financial health and operational efficiency.
  • A comprehensive financial report, including profit and loss statements, was presented, underscoring transparency and accountability.

3. Strategic Initiatives

  • Digital Transformation: Launch of a user-friendly mobile app enabling members to check balances, save, buy shares, and apply for loans online.
  • Publicity Efforts: Increased visibility through social media, meetings, and ambassador networks to attract new members and promote SACCO benefits.
  • Staff Recruitment: Hiring additional personnel to enhance operations and member support.

4. Risk Management and Compliance

The SACCO has implemented robust risk management practices, ensuring member funds are secure. It is also aligning with regulatory requirements, such as adopting standing order instructions for loan recovery and planning registration with national cooperative authorities.


Future Outlook

The AGM outlined ambitious plans to further strengthen the SACCO:

  • Strategic Plan Development: A roadmap to enhance operational efficiency and member services.
  • Product Diversification: Introduction of new savings and loan products tailored to diverse member needs, including agricultural loans and group savings.
  • Regional Expansion: Plans to operationalize regional branches for better accessibility.
  • Financial Literacy Programs: Educating members on prudent financial management to maximize benefits.

SACCO Policies

The Executive committee drafted 8 policies on 19th, April, 2024 with were presented to the 3rd UPSTU Members’ SACCO AGM on 27th December 2024 for ratification.   The contents of the policies are summarized below;

   UPSTU MEMBERS’ SACCO Membership policy

This policy outlines the terms and conditions governing the membership of UPSTU   MEMBERS’ SACCO. Below are some key points from the policy:

  • Eligibility: Open to science teachers, trainees, retirees, and well-wishers.
  • Application Requirements: Membership form, ID, fee (UGX 50,000), minimum 5 shares, and UGX 20,000 in savings.
  • Rights: Equal voting, financial services access, and account updates.
  • Obligations: Adhere to bylaws, maintain shares, savings, and repay loans promptly.
  • Termination: Resignation, death, or expulsion after fair hearing.

  1. UPSTU MEMBERS’ SACCO Shares policy

This policy establishes the terms and conditions governing the issuance, holding, transfer, and redemption of shares in UPSTU MEMBERS’ SACCO. The policy is intended to ensure fairness, transparency, and equity among all members while contributing to the SACCO’s capital base and stability. Below are some key points from the policy:

  • Share: A unit of ownership in the SACCO.
  • Requirements: Minimum 5 shares (UGX 10,000/share). Maximum number of shares is stipulated in the by-laws. (1/3 of total shares).
  • Transfers: Allowed upon death or loss of membership, with approval.
  • Dividends: Paid based on shares and net surplus profit in a given year.

  1. UPSTU MEMBERS’ SACCO Savings policy

This Savings Policy sets forth the terms and guidelines under which members of UPSTU MEMBERS’ SACCO may deposit and manage their savings. The policy is designed to encourage regular savings among members, provide a strong capital base for the SACCO, and ensure the safety and liquidity of members’ funds. Below are some key points from the policy: 

  • Monthly Contributions: Minimum UGX 20,000; voluntary additional savings allowed.
  • Notification: The account of the depositor will be updated on receipt of notification by the Sacco management. State whether the deposit is for savings or shares.
  • Withdrawal: Restricted for the first 12 months; UGX 20,000 fee applies afterward.
  • Savings to Shares: Savings can be transferred to shares anytime.
  • Suspense Account: Any deposit on the SACCO bank account whose details are not clear shall be pushed to the SUSPENSE ACCOUNT until its verified.

  1. UPSTU MEMBERS’ SACCO Loan policy

The UPSTU MEMBERS’ SACCO Loan Policy aims to provide a systematic approach to the extension of credit to eligible members, ensuring fairness, transparency, and risk management while promoting the economic prosperity of the members and stability of the SACCO. Below are some key points from the policy: 

  • Eligibility: Active members with 6 months’ consistent savings and 2 guarantors.
  • Loan Products: Emergency, micro, development, and more.
  • Limits: Loans up to (3x shares + 1x savings). Making an unusually high deposit to increase one’s limit before applying for a loan in less than 2 months is not allowed. For any loan above 2,000,000/= valid security commensurate to the risk shall be required.
  • Security: Salaries, Savings + guarantor savings or valid collateral.
  • Penalties: 1% per week late fee; recovery through guarantor or legal action.
  • Loan Committee: Is responsible for consideration of loan applications and making decisions on case-by-case basis.

  1. UPSTU MEMBERS’ SACCO Loan Recovery Policy

 The Loan Recovery Policy of UPSTU MEMBERS’ SACCO outlines the procedures and mechanisms for recovering loans in a manner that is efficient, fair, and minimizes financial risk to the SACCO and its members. Below are some key points from the policy: 

  • Monitoring: Regular repayment tracking; proactive engagement with potential defaulters.
  • Recovery Actions: Reminders, written notices, and legal action as a last resort.
  • Ethics: Fair, respectful, and lawful practices.
  • Write-offs: Allowed only after all recovery efforts fail, with Committee approval.

  1. UPSTU MEMBERS’ SACCO Investment policy

This Investment Policy establishes the framework for the management of the investment portfolio of UPSTU MEMBERS’ SACCO. It sets out the principles, guidelines, and constraints that govern the investment decisions to ensure the safety of members’ funds, liquidity of assets, and an adequate return on investments. Below are some key points from the policy: 

  • Objectives: Preserve capital, ensure liquidity, and achieve returns.
  • Investments: Fixed deposits, bonds, real estate, regulated equities, and microfinance projects.
  • Risk Management: Diversification, credit monitoring, and market risk assessment.
  • Oversight: Investment Committee ensures compliance and performance reporting.

  1. UPSTU MEMBERS’ SACCO Dividend distribution policy

The Dividend Distribution Policy outlines the principles and criteria for the declaration and distribution of dividends to the members of UPSTU MEMBERS’ SACCO. This policy aims to balance the dual goals of rewarding members for their investment while ensuring the SACCO’s sustainable growth and financial stability. Below are some key points from the policy: 

  • Eligibility: Members with shares and no overdue liabilities.
  • Distribution: Based on shares held; surplus retained for reinvestment.
  • Transparency: Annual audited financial reports guide declaration of dividend rate % and payment of dividends.
  • Unclaimed Dividends: Held temporarily, then transferred to reserves if unclaimed.

  1. UPSTU MEMBERS’ SACCO Governance policy

This policy defines roles and responsibilities of all governing bodies in UPSTU MEMBERS’ SACCO

  • Review: Policies are periodically reviewed and amended as necessary.
  • Structure: AGM (supreme organ) oversees the Executive Board, Supervisory, and Vetting Committees.
  • Committees: Credit/Finance, Planning/Marketing, and Investment subcommittees.
  • Responsibilities: Board recruits management staff and ensures regulatory compliance.
  • Review: Policies are periodically reviewed and amended as necessary.

NB: The above is a summary of key points from the policies. Copyright is reserved for full policy documents, available in hardcopy together with the bylaws at SACCO offices.


Community Spirit and Mobilization

Other members who made comments stressed the importance of mobilization to grow the SACCO. Ambassadors play a critical role in recruiting members and spreading awareness. The session also highlighted the unique bond between the SACCO and the Union, reaffirming their interdependence for mutual growth.


A Message of Gratitude

The AGM ended on a high note, with expressions of gratitude to members, ambassadors, and the leadership team for their dedication. Luyima concluded by encouraging members to raise concerns and actively engage in upcoming initiatives.


Watch the Full Session! Relive the AGM discussions and gain deeper insights into the SACCO’s journey by watching the full video recording below. Learn how UPSTU SACCO is transforming the financial lives of science teachers and contributing to community development.

Download shorter abridged version (16 minute) below.

FOR DOWNLOAD: ABRIDGED VERSION OF PRESENTATION DURING UPSTU PRODEV HOUR 9TH JAN 2025 ON SACCO AGM HIGHLIGHTS AND POLICIES

Join the movement—save together, grow together! For more information, visit UPSTU Members’ SACCOs website or contact the SACCO offices. Together, we can achieve greater financial empowerment.

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