Museveni Pledges Shs1bn for Each Mechanics SACCO in Kampala

President Yoweri Kaguta Museveni has pledged that the government will inject Shs1 billion into each of the five mechanics SACCOs operating across the five divisions of Kampala City, as part of efforts to strengthen the informal automotive sector.

The President also announced that Wakiso and Mukono districts will benefit from the initiative, with each district receiving Shs1 billion.

“We can even say Shs1 billion per division. If you say Shs5 billion for Kampala, then Wakiso Shs1 billion and Mukono Shs1 billion—that is not too much money,” President Museveni said.

He pledged on Sunday at the Kololo Ceremonial Grounds, where he met mechanics and garage operators from Kampala City and the Metropolitan Area. He was accompanied by the First Lady and Minister of Education and Sports, Maama Janet Museveni.

During the engagement, the mechanics outlined key sector priorities, including insurance coverage, structured representation, access to tools, and affordable capital.

President Museveni explained that the funds will be accessed by individual mechanics through their SACCOs to purchase tools and equipment to improve productivity.

“You will be able to borrow Shs700,000, Shs2 million or Shs4 million to buy tools. You borrow, you use, and you pay back with a simple interest of six percent per annum,” he said.

The President noted that the decision to increase funding followed his assessment that the Shs100 million previously disbursed to each SACCO was insufficient. He further urged mechanics across Kampala’s five divisions to form a unified SACCO to ease fund management and accountability.

“Even during this period before elections, we are going to first add you Shs200 million. After elections, we shall see what more we can do in the next budget,” he said, clarifying that he was engaging them as President, not as a presidential candidate.

President Museveni also confirmed government plans to purchase land and establish modern garages equipped with shared facilities such as advanced machinery, breakdown services and wheel loaders. He emphasised that government-donated land and equipment will remain state-owned and used collectively.

“All that you are requesting is possible. We are going to purchase land for you. But the equipment will remain in the name of the government so that it benefits everyone,” he said, while questioning who would be responsible for managing the facilities.

The President also demanded accountability for funds and equipment previously given to mechanics’ associations in Kampala and Masaka about a decade ago, ordering investigations into their utilisation.

“I sent funding to mechanics and garage associations 10 years ago. Now I have come to demand accountability,” he said, warning that those who mismanaged the resources would be held responsible.

He dismissed claims that the government had neglected mechanics, citing earlier support programmes, and revealed plans for a national health insurance scheme currently under review. He also pledged to create special funds for women working in garages, as well as programmes to support sex workers seeking alternative livelihoods.

The Minister for Kampala and Metropolitan Affairs, Hajjat Minsa Kabanda, assured the President of the sector’s support for the National Resistance Movement (NRM), describing mechanics as key drivers of Uganda’s socio-economic transformation.

Commissioner at the National Secretariat for Patriotism Corps and Presidential Assistant on Youth Affairs, Ms Hellen Seku, commended the President for continued support to mechanics, noting that previous SACCO funding had significantly improved their livelihoods.

The Kampala Central Division Mayor and NRM Chairperson for Kampala, Salim Uhuru, credited improved leadership for restoring order in areas such as Kiseka Market.

“There is no more chaos or burning of tyres. The mechanics are organised, and many proudly support your leadership, Mr President,” he said.

Mechanics’ representatives from Kampala, Wakiso and Mpigi, including Nayika Musa, Charles Obbo, Kabogoza Toffa and Zzimbe Hudson, also presented additional requests during the meeting.