The SACCO offers both investment and loan products to its members.

a)Investment products include;

Boda Boda Investment scheme

Fixed deposits

Pooled Investment

Short term investment

b)Loan products include;

Boda Boda loans

Ordinary loans

Boda Boda repair and service loans

Emergency loans

Boda Boda rider accident treatment loan

Land purchase loan

Car loan

SACCO members' money in Uganda is protected primarily through regulation by the Uganda Microfinance Regulatory Authority (UMRA) under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016, which mandates licensing, annual audits, and the creation of a SACCO Savings Protection Fund. This fund compensates members if a SACCO fails, with SACCOs required to pay an annual premium of 0.5% of their savings to it. [1, 2, 3, 4]

Key protection mechanisms include:

• Mandatory Licensing & Regulation: UMRA licenses and supervises SACCOs to ensure compliance, requiring them to submit monthly returns on capital adequacy and liquidity.
• SACCO Savings Protection Fund: This fund is established specifically to protect members' money in case of liquidation, insolvency, or mismanagement.
• Legal Framework:The Tier 4 Microfinance Institutions and Money Lenders Act, 2016, and its 2020 regulations provide a legal basis for holding management accountable and managing risks.
• Required Registration:SACCOs are urged to register with the Ministry of Trade, Industry and Cooperatives and UMRA to operate legally and ensure they are subject to legal oversight.
• Stabilization Fund & Central Financing Facility: The Act provides for a stabilization fund and a central financing facility to support SACCOs in financial distress, enhancing overall stability.
• Internal Controls & Monitoring: Registered SACCOs are required to have internal, robust, and secure management systems, often involving regular audits. [1, 2, 3, 4, 5, 6, 7]

Actionable Tip: MN Transport Staff and Community SACCO is currently finalizing registration with UMRA. Full registration is expected to be realized by 30th June 2026

The Boda Bodas are not insured as the cost of insurance is high and there aren’t credible Insurance companies covering this product. Management has instead invested in robust management systems such as tracking devices, recovery teams and cutting edge software to minimize risks of theft and accidents.

MN Transport Company (through which the SACCO was formed) has been operating since September 2017. The company is duly incorporated and fulfills its statutory obligations especially to URA and URSB

The rider is expected to undertake any repairs on the motorbike in case of any accidents as per the loan agreement. In the event that a rider is nor in position to do the requisite repairs, the company will repair the motorbike and add the cost of repair on the loan to the rider.

Every boda boda is fitted with a tracking device before being issued out. The company has dedicated staff who are responsible for tracking Boda Bodas to ensure compliance with company regulations and loan agreements. The company has a 24/7 access to where the Boda Bodas are and is even able to disable movement of the same where necessary.

The Company requires a valid driving permit for every rider as part of the due diligence procedures in order to for one to access a Boda Boda loan.

Investors and the SACCO sign deposit form that recognizes the individual’s investment in a particular product as well as the payments and period. This serves as evidence in case an investor is seeking compensation or redress from the SACCO (refer to Qn1 for details on investor protection).

An investor can also enter into a formal agreement with the SACCO which agreement can be registered with URSB and enforced in a competent court of law. Such an agreement is however constitutes a lending agreement and the investor will be liable to withholding tax at 15% of the interest accrued.

The bike is registered in the company’s name to ensure management efficiency for example when dealing with Boda Bodas impounded by police, when riders have completed their loans and want to do transfers and in any event that the company needs to prove ownership. We have a considerable number of investors and therefore having to look for them whenever evidence of bike ownership is required will be cumbersome.

An investor can also enter into a formal agreement with the SACCO which agreement can be registered with URSB and enforced in a competent court of law. Such an agreement is however constitutes a lending agreement and the investor will be liable to withholding tax at 15% of the interest accrued.