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UMRA decries high cost of registration for Village Saving Groups

Eward Bindhe, the authority spokesperson says districts are charging non-uniform fee of between Shs60,000 and Shs150,000 which is exorbitant to many groups

Gilbert Akampa Kakurugu by Gilbert Akampa Kakurugu
November 2, 2023
in RELIGION
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Women at a Village Savings Group (Self Help Group) meeting in Kenya

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By Charlotte Kagumaho,

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Uganda Micro-finance regulatory authority (UMRA) has decried the unfair fee for registration of Self Help Saving Groups (SHGs) by local governments across the country.

Section 99 of the Tier 4 Microfinance Institutions and Money Lenders’ Act, 2016 defines operational guidelines for SHGs as provided by UMRA In 2021. This was to assist Self Help Groups in establishing financial stabilization mechanisms, and increase transparency.d

Eward Bindhe, the authority spokesperson says districts are charging non-uniform fee of between Shs60,000 and Shs150,000 which is exorbitant to many groups. He says that they have received complaints from members of these groups.

Pointing out districts like Luweero where cases of extortion are high, Bindhe said they have asked the ministry of finance, local government ministry to get guidance on how they can wisely spend the money.

Members of a Self Help Group (Village Savings Group) in Uganda

“We have registered a public outcry that some local governments are charging exorbitant fees. What is happening is that through the Ministry of Finance, we notified the Ministry of Local Government to get guidance on how we can implement a uniform fee for all the local governments,” he said.

He says they have embarked on sensitizing SHGs regarding the same.

Tags: Edward BindheSelf Help Saving GroupsUMRAVSLG

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