Uganda Police’s Exodus SACCO’s Income Surges by 71%

Summary:

• Exodus SACCO, a police cooperative, saw a significant increase in interest income and net surplus in 2023 due to efficient management and member loan repayments.

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Exodus SACCO, the Police Savings and Credit Cooperation Organization, witnessed a substantial increase in its interest income, soaring by 71.6% from 3.89 billion shillings in 2022 to 6.68 billion shillings in 2023. SP Eddy Ssekanjako, the treasurer of Exodus SACCO, highlighted that the net surplus also experienced remarkable growth, surging by 150.3% from 1.98 billion shillings in 2022 to 4.96 billion shillings in 2023.

SP Ssekanjako attributed this success primarily to efficient expenditure management and timely member loan repayments. He emphasized that the surge in net surplus was propelled by a significant increase in loan disbursements, reflecting members’ heightened trust in SACCO activities and prudent financial management.

Despite the country’s headline inflation dropping to 4.6% in 2023 from 7.2% in 2022, Exodus SACCO maintained its interest rates on loans to members. SP Ssekanjako explained that this inflationary reduction was mainly due to various factors, including decreases in lending rates for shilling-denominated credit.

Exodus SACCO retained its 14% interest rate on loans to members, contributing to improved member welfare while ensuring the SACCO’s financial stability. SP Ssekanjako acknowledged the challenges SACCOs face regarding governance, financial sustainability, and economic uncertainties, stating that Exodus SACCO is actively embracing technological innovations to enhance efficiency and broaden service offerings.

SCP Wilson Omoding, Chairman of Exodus SACCO, noted a slight increase in total deposits and significant growth in equity. He highlighted the rise in dividend per share and stable share price, indicating robust performance and a substantial increase in net surplus for the year.

SCP Omoding emphasized the importance of prudent loan recovery processes amidst transitioning loan repayment methods. Exodus SACCO credited its impressive performance to a robust risk management framework, reinforced by staff training and enhanced internal controls.

Acting Inspector General of Police Maj Gen Geoffrey Tumusiime Katsigazi cautioned police officers against impulsive borrowing, urging them to borrow with a clear purpose to avoid financial mismanagement.