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State House Warns Skilling Hub Graduates Against Misusing Loans As President Museveni Plans To Increase SACCO Funding
By PPU Reporter Wednesday, 19 Aug 2026
State House Warns Skilling Hub Graduates Against Misusing Loans As President Museveni Plans To Increase SACCO Funding

State House Comptroller, Ms. Jane Barekye has cautioned beneficiaries of the Presidential Industrial Skilling Hubs against misusing government start-up loans, warning that President Yoweri Kaguta Museveni will increase funding to graduates’ SACCOs only if the existing revolving funds are properly managed.

 

Ms. Barekye specifically warned beneficiaries against spending the loans on non-productive activities, including alcohol consumption and bride price payments.


“The President is going to add more money to these SACCOs. What we need from you is financial discipline. First invest the money in the rightful projects. After your businesses grow and start making profits, you can then use the proceeds for things like bride price, but not these loans. Please don’t play with the President’s money,” she said.


She made the remarks on Tuesday, August 18, 2026, during a stakeholders’ engagement at the Tooro Zonal Presidential Industrial Skilling Hub in Kyenjojo District.


The engagement brought together State House officials, political and technical leaders, SACCO executives and beneficiaries to review the performance of the skilling programme and its revolving fund.


The Tooro Zonal Hub serves beneficiaries from Kyenjojo, Kyegegwa, Kamwenge, Fort Portal City, Bunyangabu and Kabarole.


Ms. Barekye said the Shs50 million provided to each district SACCO was a pilot intervention intended to help graduates translate skills acquired at the Presidential Industrial Skilling Hubs into sustainable income-generating enterprises.


She said the State House was jointly reviewing the programme with local leaders to assess whether the funds were achieving their intended purpose and identify challenges affecting beneficiaries.


“This is a project we lead together with you. We want to hear from you about what we are doing and how we are performing. We are here to review all that with you,” she said.


Ms. Barekye urged leaders to closely monitor district SACCOs to ensure funds released by the President reach the intended beneficiaries and are invested in the enterprises for which they were borrowed.


She also disclosed that a finance manager had been deployed to strengthen supervision of SACCO operations and track how beneficiaries utilise the revolving funds.


Mr. Ronald Aroho, the newly deployed finance manager, pledged to work closely with SACCO leaders, district commercial officers and other stakeholders to improve accountability and ensure the funds deliver tangible results.


Ms. Barekye commended district commercial officers for their role in guiding and monitoring SACCOs and directed Mr. Aroho to work with them rather than create a parallel system.


She further encouraged district leaders to conduct unannounced visits to the hub to assess training, management and overall implementation.


“This is your project; don’t let it die. The President has invested a lot in it,” she said.


Ms. Barekye challenged local governments to deliberately support graduates by awarding them contracts and tenders, including opportunities to supply school desks, beds and other products they are trained to produce.


She said where contracts are too large for individual graduates, contractors should be encouraged to employ youth trained at the Presidential Industrial Skilling Hubs during implementation.


The Comptroller also encouraged communities to utilise the hub’s four-acre model farm to acquire practical knowledge in commercial agriculture, including fish farming and other enterprises.


The meeting also reviewed the performance of graduates’ SACCOs.


Mr. Mulungi Kenneth, chairperson of the Kabarole District Hub SACCO, said 36 graduates had so far accessed the revolving fund but noted that lack of National Identification Cards among some beneficiaries was limiting access to the funds.


Kamwenge District Hub SACCO chairperson, Mr. Akampulira Everest said 13 beneficiaries had received loans and invested them in their intended projects.


He commended President Museveni for providing the start-up capital but said registration requirements, including access to Wendi services, remained challenging for some youth without National IDs.


SACCO leaders appealed to the State House to review some of the loan access requirements, arguing that graduates without National IDs should not be entirely excluded if their identities and graduation status can be verified.


They said easing the bottlenecks would prevent funds from remaining idle in SACCO accounts while trained youth struggle to access capital.


Graduates testify to impact:

Several beneficiaries told the meeting that the combination of vocational training and start-up capital had transformed their lives.


Ms. Kabasiita Janet, a tailoring graduate from Kitagwenda, said she previously had little hope of finding employment because she lacked formal academic qualifications.


After completing her training, she received a Shs560,000 SACCO loan, which enabled her to start earning from her skills.


However, she appealed for an increase in the loan amount, saying Shs560,000 was insufficient to buy a sewing machine, pay rent and purchase enough materials to establish a fully equipped tailoring business.


Despite the challenges, Ms. Kabasiita said the programme had restored her confidence and improved her standing in the community.


She added that her nationally recognised certificate had opened new opportunities, including leadership roles in her church.


Mr. Abenitwe Jordan, a carpentry graduate from Kitagwenda, said he received Shs1.35 million and used it to establish his own workshop.


He said he produces beds at a cost of about Shs180,000 and sells them between Shs250,000 and Shs350,000, depending on the design. He has also diversified into poultry and piggery.


“Since my childhood, I had never put on a coat and tie, but because of this programme, I can now wear this attire,” he said, noting that the initiative had given him both skills and capital to improve his life.


For Ms. Atuyambe Hannah of Katunguru in Kyenjojo, the programme provided an alternative to seeking work abroad.


After completing Senior Four, she said her father had encouraged her to travel abroad for domestic work, a proposal she was uncomfortable with.


She later heard about the Tooro Zonal Presidential Industrial Skilling Hub on radio, enrolled in 2023 and completed her tailoring course in July 2024.


Ms. Atuyambe said the hub’s mindset-change training complemented her vocational skills and shaped her entrepreneurial outlook.


After graduation, she received a Shs560,000 SACCO loan and started a tailoring business before expanding into selling household items.


She now earns between Shs250,000 and Shs300,000 per month, supports her family and saves part of her income.


Leaders commend programme:

Bunyangabu Resident District Commissioner, Mr. Nicholas Kamukama commended the mindset-change component of the programme, saying it had produced disciplined and responsible graduates.


He suggested that similar engagements be extended to leaders, noting that some government programmes are undermined when leaders politicise them instead of mobilising communities to benefit.


Kyenjojo Resident District Commissioner, Ms. Ayesiga Julian Sarah welcomed the establishment of the four-acre model farm at the hub but urged State House to consider introducing irrigation to maintain productivity during dry seasons.


Kabarole Deputy RDC, Ms. Benuza Jane Atenyi said the hub was strengthening household incomes by equipping both women and men with employable skills.


The stakeholders’ meeting formed part of State House’s ongoing assessment of the Presidential Industrial Skilling Hubs, graduate SACCOs and model farms, while gathering feedback from beneficiaries and local leaders.


President Museveni introduced the revolving fund after graduates raised concerns that, despite acquiring vocational skills, many lacked capital to start businesses.


The government subsequently injected Shs50 million into each district graduates’ SACCO, from which beneficiaries access loans to establish income-generating enterprises.


The fund operates on a revolving basis, with beneficiaries expected to repay their loans so that other graduates can also benefit.

 


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