Shs10.2bn for Boda Boda SACCOs: Cheap Credit, Big Expectations

In September 2025, President Yoweri Museveni handed over Shs10.2 billion to boda boda SACCOs in the Kampala Metropolitan Area. The money was shared among 102 SACCOs in Kampala, Wakiso and Mukono, about Shs100 million each, and is meant to support more than 400,000 motorcycle operators, according to reports at the time.

The stated aim is simple: let riders acquire new motorcycles at affordable rates and reduce their dependence on exploitative money lenders. Many riders work bikes owned by others or bought on punishing hire-purchase terms, so cheap credit could change who owns the means of their livelihood.

Reports of the handover at Kololo said the motorcycles would be priced at about Shs5 million with interest capped at six percent, and that the President warned leaders against using the money to clear old debts. He also called for accountability over earlier funds given to boda boda groups.

The handover was framed as a fresh start. Riders were told the money was for new motorcycles, not for clearing old loans, and SACCO leaders were reminded that they would be held to account for how it was used. Those messages will be tested once the first repayments fall due.

The cash came days after another milestone. In September 2025, the United Boda-Boda Riders Cooperative Union and the Uganda Taxi Operators Federation (UTOF) announced a partnership aimed at easing access to affordable credit, improving welfare and strengthening their collective voice. The deal was presented as ending years of rivalry between the two groups.

The alliance includes a shared identity and a digital platform intended to integrate boda boda and taxi services in one system. On 14 September 2025, the President's 81st birthday was marked at Kololo Ceremonial Grounds together with the first Boda Union Festival and Expo, which brought together government leaders, riders and taxi operators.

For a sector long treated mainly as a security and traffic problem, these are signs of riders organising as an economic force through co-operative structures.

For taxi operators, the attraction is similar. Like boda boda riders, many taxi drivers work vehicles they do not own and depend on informal credit. A joint platform with the boda union gives them a larger membership base from which to negotiate with lenders and authorities.

Nobody knows exactly how many boda bodas work in the capital, but the figure of more than 400,000 operators cited for Kampala, Wakiso and Mukono gives a sense of the scale. For many young men in the metropolitan area, the motorcycle is the most accessible job available.

That scale is both the opportunity and the risk. With 102 SACCOs serving hundreds of thousands of potential borrowers, Shs100 million per SACCO buys only about 20 motorcycles at Shs5 million each before repayments start revolving. Selection, transparency and repayment will determine how many riders benefit.

Earlier government cash injections into SACCOs, including the Emyooga programme and the Parish Development Model, have struggled with low repayment. Rider SACCOs will face the same test.

The sector's reputation is another factor. Boda bodas are associated in public debate with accidents and crime, and organised SACCOs that know their members can help change that image by enforcing codes of conduct and cooperating with authorities on safety.

Experience from other SACCO programmes suggests a few safeguards. Members should elect boards openly and see a published list of who received motorcycles. Loans should be appraised on a rider's ability to pay, and repayments should be recorded in a system members can check.

Building members' own savings alongside the government capital helps too. A SACCO that rests only on a one-off grant is fragile; one that collects small daily or weekly savings from riders builds a cushion and a culture of repayment.

If the money revolves well, riders who have long rented their bikes could become owners, and the SACCOs could grow into lasting financial co-operatives for the transport sector. If it does not, the Shs10.2 billion will join a long list of funds that came and went.

Equally important is keeping the SACCOs at arm's length from politics. Riders who see the money as a reward for loyalty, rather than a loan from their own co-operative, are less likely to repay, as other government-funded SACCO schemes have discovered.

Insurance is a natural next step. Riders face high risks of accidents, theft and illness, and a well-run SACCO could negotiate group cover for motorcycles and members' health at prices no individual rider could obtain.