More than Shs2 billion allocated to Mayuge District under the Presidential Initiative on Teachers’ Welfare in 2015 failed to reach its intended beneficiaries, sparking investigations into alleged mismanagement and fraud.
The funds, meant to empower over 2,000 teachers through the district’s SACCO (Savings and Credit Cooperative Organization), were deposited directly into the Mayuge Teachers’ SACCO account. They were intended to provide affordable credit to educators and improve their livelihoods. However, officials from the district and leaders of the SACCO at the time are accused of diverting the money.
President Yoweri Kaguta Museveni launched the initiative a decade ago, describing it as a cornerstone effort to uplift teachers facing financial hardships. The disappearance of funds in Mayuge now raises serious concerns about accountability and transparency at the district level.
Mr. Steven Nabende, Chairperson of WALIMU Cooperative Union Ltd, confirmed that the matter is currently under investigation by the State House Anti-Corruption Unit, the Criminal Investigations Directorate (CID), and the Inspectorate of Government (IGG).
Speaking in Iganga District on Thursday during the launch of the second phase of the Teachers’ SACCO Programme—which allocates Shs500 million to each district—Mr. Nabende said formal recovery efforts have begun.
“We have now formally initiated efforts to recover the Shs2 billion lost from the Teachers’ SACCO in Mayuge District since 2015,” he stated.
He explained that thousands of teachers were denied access to much-needed credit due to the mismanagement. To prevent a repeat of the same issues in the second phase, a new digital system is being introduced to streamline loan applications and reduce fraud.
“This time, all loan applications will go through a digital platform. Only applicants with clean financial records will qualify, and the system will automatically reject those with questionable histories,” he added.
Despite the revelations, Mr. Emmanuel Bunya, Communications Officer at the State House Anti-Corruption Unit, noted that no formal complaint has yet been filed by Mayuge District regarding the missing funds.
In a move aimed at recovering the lost money without involving lengthy court battles, WALIMU has appointed Mr. Stanley Bayole—father of the Inebantu of Busoga—to mediate with implicated leaders across the Busoga sub-region.
Known affectionately as the “grandfather of Busoga,” Mr. Bayole pledged to begin mediation in his home district of Mayuge, before extending efforts to other affected areas such as Kaliro.
“The cooperative assigned me to mediate between WALIMU and those responsible. I’m starting with Mayuge, my home district, before moving to Kaliro,” he said.
He also urged teachers to use SACCO loans responsibly:
“It’s disheartening to see a teacher struggling while their students live comfortably. Teachers must take loans to improve their lives, not waste opportunities.”
Ms. Caroline Atai Kiyai, General Manager of WALIMU Teachers’ Cooperative SACCO, condemned the mismanagement of funds and outlined reforms under the second phase of the initiative. She pointed to outdated ICT systems as a major bottleneck during the first phase, which affected loan tracking and processing.
“The second phase introduces a modern digital platform to streamline loan disbursement and repayment. With payroll deductions for government-employed teachers, we expect timely recovery and efficient management,” she said.
As the government rolls out the second phase of the programme, education stakeholders are urging greater vigilance, transparency, and responsibility—from both SACCO leaders and district officials—to ensure that the mistakes of the past are not repeated and that teachers receive the support they were promised.
