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By Kabuye Ronald
President Yoweri Museveni has pledged UGX 10.2 billion to Boda Boda Savings and Credit Cooperative Organisations (SACCOs) across the Kampala Metropolitan Area, with a strict condition that all loans disbursed under the scheme must not exceed a 6% annual interest rate.
During a meeting held at Kololo on Sunday, September 21, with leaders of 102 boda boda SACCOs, the President announced that each group will receive UGX 100 million. The funds are aimed at supporting motorcycle taxi riders and are explicitly not intended for wealthy individuals or profit-driven entities.
“This support is for the ordinary boda boda riders not the rich business people looking for profits,” Museveni posted on X (formerly Twitter) later that evening. “I’ve contributed a total of UGX 10.2 billion, 100 million for each SACCO to empower the riders.”
The President warned against diverting the funds to moneylenders, criticizing their exploitative interest rates and predatory lending practices. He emphasized that the loans should be used specifically for purchasing motorcycles at fair value, not as a means to enrich intermediaries.
“The 6% interest cap is not for profit, it’s a measure to protect our people from inflation and exploitation. I will formalize this in writing, and anyone who violates it will face legal consequences,” he said.
The announcement was met with applause from boda boda leaders, who described it as long-awaited relief for riders trapped in harsh hire-purchase arrangements and unregulated debt cycles.
Uganda’s boda boda sector employs over a million people, the majority of whom operate outside formal financial systems. This initiative, according to the President, is part of a broader strategy to bring them into organized economic structures while shielding them from financial abuse.
