In a dramatic policy shift, President Yoweri Kaguta Museveni has cancelled his earlier pledge to inject shs 100 million into each Ghetto SACCO, opting instead to provide a sweeping shs 1 billion to each of Kampala’s five divisions—bringing the total to shs 5 billion.
While addressing residents during his Kampala Parish Development Model (PDM) tour stop in Kawempe on Friday, Museveni said the decision was inspired by the “undeniable success” of the ghetto SACCO initiative, which he launched last year.
“Initially, I had planned to give 100 million to each SACCO. But what I have seen is beyond expectation,” Museveni said. “The youth are focused, organized, and serious about development. That is why I am raising the bar—each division will now receive shs 1 billion to boost these SACCOs further.”
The Ghetto SACCO program, championed by Maj. Gen. Christopher Damulira, Director of Crime Intelligence, was designed to reorganize vulnerable urban youth into productive economic groups.
The President had already injected shs1.2 billion into 12 pilot SACCOs across Kampala’s metropolitan areas, citing improved social order and economic engagement among youth.
Now, with five divisions in Kampala—Kawempe, Nakawa, Rubaga, Makindye, and Central Division—each set to receive shs 1 billion, the program has received an unprecedented scale-up, signaling government confidence in its potential to reduce urban poverty and crime.
Museveni emphasized that unlike other government programs riddled with corruption and poor accountability, the Ghetto SACCOs have shown discipline, transparency, and clear impact.
“This is what we want to see—results. Not the confusion that has plagued PDM,” he added.
In a pointed remark, Museveni also expressed disappointment with the management of the PDM, revealing that investigations are underway to identify and hold accountable those who have misused the funds meant for grassroots transformation.
“We are following up on those who have tampered with PDM money. People who interfere with programs meant to lift Ugandans out of poverty are enemies of progress,” he warned.
As the government pours more funds into organized urban SACCOs, the President reiterated his call to ghetto youth to stay committed to development and shun crime. With state backing and growing trust, the Ghetto SACCO model may become a blueprint for urban transformation across the country.
