Lira Tailors’ SACCO grows from shs6m to Shs165m
Students undergoing tailoring training posing for a photo at Lira Municipality Tailors` SACCO in Lira City
By Patrick Okino
Lira Municipality Tailors Emyooga Savings and Credit Cooperative Society (SACCO), located in Barogole Ward, has steadily grown since its establishment in 2021, transforming from a small group of tailors into one of the strongest Emyooga SACCOs in the country.
The SACCO began with 56 members and an initial capital of Shs6 million mobilised from members. It was formed under the Emyooga programme, a government initiative spearheaded by President Yoweri Museveni to promote job and wealth creation, with a focus on tailoring, fashion design, knitting, and decoration.
Initially, the SACCO comprised 17 associations, but some later dropped out, leaving nine active associations. These include Sharonica Tailors, Atek Ilwak, Tik Ngokeli, New Lira Main Market, Bazar East, Joint Christian Tailoring, Bazar East B, Lira Taxi Park, and Lira Main Market and Textile Associations.
To boost operations, the SACCO received Shs50 million in seed capital from the government through the Microfinance Support Centre. This funding significantly enhanced its borrowing and lending capacity.
Unlike commercial banks, which charge high interest rates, the SACCO offers loans at an interest rate of only eight percent over a six-month period. According to Aroko Robina, the loan committee team leader, the SACCO has continued to grow steadily.
“I am very happy to note that the repayment schedule is favourable to clients and is moving smoothly,” Aroko said.
Currently, the SACCO offers loans of up to Shs25 million, Shs16 million, and Shs10 million strictly to its members. Aroko added that if the current trend continues, by 2026 the SACCO plans to establish a joint income-generating venture involving all member associations within Lira City.
The chairperson, Sharon Ekit, said the SACCO’s low interest rates and quick access to credit have attracted more members. She revealed that the SACCO currently has savings of Shs21 million, shares worth Shs2 million, and a loan portfolio amounting to Shs165 million.
“We have members accessing loans of over Shs10 million, which shows how attractive our interest rates are,” Ekit said. She added that commercial banks charge interest rates ranging from 18 to 25 percent.
Aroko noted that money lenders charge interest of up to 25 percent per month, while banks have lengthy and costly procedures.
“Our interest is very low. It is meant to help members grow their businesses and repay with minimal strain,” she said, adding that unlike money lenders, the SACCO does not aggressively seize members’ property in case of delayed repayment.
Leadership Praised
The Assistant City Commissioner, Bonny Okello Alele, praised the SACCO for its strong performance, saying it is not only doing well in the Lango sub-region but ranks among the best in the country.
He attributed this success to strong leadership, transparency, and accountability, noting that the SACCO’s leaders ensured government seed capital was properly used for its intended purpose.
“One important thing about this SACCO is its leadership. They are committed, non-corrupt, honest, and they understand the value of money in service,” Okello said.
He explained that while many SACCOs distribute government funds among members and fail to invest productively, Lira Municipality Tailors Emyooga SACCO added value to the resources it received.
Okello encouraged the public to appreciate the importance of public funds, saying this principle is the key reason the SACCO continues to register positive growth.
Achievements
The SACCO has established a tailoring training centre equipped with over 100 sewing machines, up from just five. The centre trains more than 500 youths—both girls and boys—every year.
Aroko said the initiative has significantly improved the livelihoods of tailors, enabling many to stock materials, open larger shops, and diversify their clothing products.
“The SACCO has also improved financial literacy among members. Many tailors did not know how to manage money before, but now they understand saving, borrowing, and repayment,” she said.
Challenges
Despite the progress, the SACCO faces challenges, particularly a negative mindset among some beneficiaries. Aroko explained that limited sensitisation at the start of the Emyooga programme led some people to mistakenly believe the funds were government handouts.
“Some members think that as long as the NRM government is in power, they can repay the money whenever they want,” she said, describing this as a major obstacle to growth.
She added that loan defaulting remains a challenge, but the SACCO is addressing it by working closely with Local Council I chairpersons to ensure compliance and recovery.
