State minister for Micro Finance, Haruna Kyeyune Kasolo, says that the biggest challenge faced by savings and credit societies across the country is the high interest rates imposed on members by managers and board members in the end discouraging many people from joining the savings and credit societies.
The minister is currently on a country wide tour to monitor the operations of the SACCOS, give advice to members on saving and encourage others to join.
Kasolo also say that the other issue holding back the SACCOS is lack of enough funds to extend to members as soft loans.
But adds that his ministry through the micro finance support center has worked out a program whereby SACCOS will be given close to 2 billion shillings every month at low interest rates.
Saccos will be able to access agricultural loans at an interest rate of 9% annually and commercial loans at an interest of 13% annually.
Among those to benefit from the program first is the Butabika hospital staff SACCO who are about to receive about 100 million shillings.
