"'Recover at Least 80% of the Defaulted Loans by March 2027,' Teachers Panic as Government Orders New Walimu SACCO Board to Pursue Over Shs11 Billion Owed by Borrowers Nationwide

Thousands of teachers across Uganda who borrowed money from the Walimu Teachers Savings and Credit Cooperative (SACCO) could soon face intensified loan recovery efforts after the government directed the newly inaugurated Board of Directors to recover more than Shs11 billion in outstanding loans.

According to information available, the new board has been given a strict target of recovering at least 80 percent of the SACCO's defaulted loan portfolio by March 31, 2027, as part of broader reforms aimed at strengthening the financial institution.

The directive comes as the government moves to revive dormant teachers' SACCOs across the country and restore confidence in cooperative savings societies established to improve the welfare of teachers.

Sources indicate that the board has also been tasked with revitalizing inactive cooperative societies, improving financial management and ensuring that members benefit from sustainable lending services.

Teachers who have defaulted on their loan repayments are expected to come under increased scrutiny as the board begins implementing recovery strategies in line with the government's directives.

Officials believe recovering the outstanding funds will improve the SACCO's financial stability and enable it to extend more affordable loans to teachers who continue to meet their repayment obligations.

The renewed focus on loan recovery follows significant government investment in the cooperative. President Yoweri Museveni previously injected Shs27 billion into the Walimu Teachers SACCO through the Ministry of Trade, Industry and Cooperatives to strengthen the institution and expand access to affordable financial services for teachers.

Government officials have consistently emphasized that the funding was intended to empower teachers economically by providing accessible credit for personal development, business ventures and household needs.

However, the growing level of loan defaults has reportedly affected the SACCO's ability to lend to new applicants and sustain its operations, prompting authorities to adopt tougher recovery measures.

Financial experts say recovering the defaulted loans will be essential if the SACCO is to remain financially healthy and continue supporting teachers across Uganda. They also note that borrowers who cooperate with repayment plans may have an opportunity to regularize their accounts before more stringent enforcement measures are introduced.

The latest directive signals the government's determination to protect public investments made in cooperative societies while ensuring that financial institutions serving teachers remain viable and accountable.

As the March 2027 deadline approaches, both the new board and teachers with outstanding loans are expected to face mounting pressure to ensure that the ambitious recovery target is achieved.