President Yoweri Kaguta Museveni has unveiled a major financial intervention for the boda boda industry, committing UGX 10.2 billion to Savings and Credit Cooperative Organisations (SACCOs) in the Kampala Metropolitan Area.
Speaking at Kololo Ceremonial Grounds on Sunday, September 21, the President met leaders of 102 SACCOs, pledging that each group will receive UGX 100 million to support ordinary riders rather than wealthy investors.
“I was pleased to meet with the Bodaboda leaders from the Kampala Metropolitan area today at Kololo. They represent 102 Saccos and I have contributed a total of Uganda Shillings 10.2 billion—100 million for each Sacco. These SACCOs are not for the Rich Business people ‘Abagagga’ who are looking for profits but rather the motorcycle riders specifically intended to empower them,” Museveni posted on X.
The President warned that the capital must not fall into the hands of moneylenders who exploit riders with high interest rates.
“Secondly, this money should not be given to money lenders, as their exorbitant interest rates are unacceptable. It should be used to pay for the value of the motorcycle the way it is,” he said.
Museveni directed that all loans under the scheme must carry an annual interest rate of no more than 6%, stressing that the rate is meant to protect riders from inflation and exploitation.
“This rate is not meant for profit but is intended to combat inflation. I will formalize this in writing, and anyone who defies it will face legal consequences,” he warned.
The announcement drew cheers from boda boda leaders, many of whom described it as overdue relief for thousands of riders trapped in harsh hire-purchase arrangements and predatory lending. Still, some raised concerns about accountability, calling for clear registration, auditing, and monitoring systems to prevent misuse of the funds.
Economic experts also weighed in, hailing the move as a boost for financial inclusion in a sector that employs over a million Ugandans.
They cautioned, however, that without strict oversight, mismanagement could undermine the programme. Analysts further noted that the 6% interest rate, while affordable, may not fully offset the pressure of rising fuel, spare parts, and maintenance costs that continue to weigh down riders.
The boda boda industry remains one of Uganda’s largest sources of urban employment, yet most riders operate outside formal credit systems.
State House has recently directed that SACCO certification is a prerequisite for accessing government support.
With this UGX 10.2 billion injection, government hopes to transform the sector into a more structured and sustainable industry, securing livelihoods while curbing exploitation.