Kampala, Uganda | JULIUS BUSINGE | Stanbic Bank Uganda has cut its lending rate to 10% per annum for agriculture-based savings and credit cooperative organisations (SACCOs), in a move that underscores rising competition among lenders targeting Uganda’s rural financial ecosystem.
The reduced rate is aimed at improving access to affordable capital for community-based financial institutions that serve smallholder farmers, who remain central to Uganda’s agriculture-dependent economy.
The announcement was made at the 28th Annual General Meeting of the Association of Microfinance Institutions of Uganda (AMFIU), where the lender reaffirmed its strategy of deepening partnerships with SACCOs, village savings and loan associations (VSLAs) and microfinance institutions.
Stanbic Bank Uganda Head of Economic Enterprise Restart Fund Stephen Segujja said the lower rate reflects the bank’s focus on expanding credit to grassroots lenders.
“We understand that SACCOs need affordable capital to serve their members effectively, and that’s why we’ve reduced our lending rates for agriculture-based SACCOs to 10 percent per annum,” he said. “Multi-purpose SACCOs will access financing at 12.5 percent.”
Eligible SACCOs can access loans of up to Shs7bn, with the facility also extended to selected microfinance institutions.
The move forms part of Stanbic’s Women, Youth and Farmers (WYF) programme, which is backed by a Shs1tn commitment aimed at expanding financial access, supporting enterprise growth and strengthening Uganda’s informal financial sector.
The bank said it has significantly expanded its engagement with community lenders since 2021, channelling more than Shs362bn through SACCOs and VSLAs, reaching nearly four million Ugandans. About 780,000 members have accessed credit through these structures, it said.
Beyond lending, Stanbic is increasingly positioning itself as a digital and institutional partner to grassroots finance providers. It has worked with organisations including aBi Finance and its own FlexiPay platform to support SACCO digitisation, aimed at improving efficiency, transparency and transaction management.
The bank said it has also trained more than 35,000 women leaders and farmer representatives in governance, financial management and leadership skills, part of a broader effort to strengthen institutional capacity in community finance.
AMFIU Board President James Onyutta said microfinance institutions remain central to financial inclusion, particularly for low-income households and rural communities.
“Despite the evolving economic environment, our member institutions continue to demonstrate remarkable resilience and commitment to serving millions of Ugandans,” he said.
AMFIU, founded in 1996, brings together 204 member institutions including SACCOs, microfinance institutions, commercial banks, development partners and academic organisations.
Ministry of Finance Commissioner for Financial Services Moses Ogwapus said the sector had played a key role in widening access to credit across the country.
“Your work has enabled millions of Ugandans, particularly women, farmers and entrepreneurs, to access opportunities that were once beyond their reach,” he said.
The rate cut comes as competition intensifies among financial institutions targeting Uganda’s agricultural value chain, with lenders increasingly shifting towards structured lending through cooperatives rather than individual borrowers.
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