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Government Injects UGX100m into Mukono Bodaboda Sacco to Fight Poverty

Diphas Kiguli by Diphas Kiguli
May 8, 2026
in Business
Reading Time: 3 mins read
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Goma Division Chairperson Hussein Ddumba Kato poses for a photo with one of the newly acquired motorcycles during the handover ceremony at the sacco offices in Mukono Municipality.

Goma Division Chairperson Hussein Ddumba Kato poses for a photo with one of the newly acquired motorcycles during the handover ceremony at the sacco offices in Mukono Municipality.

A number of commercial motorcycle riders in Goma Division, Mukono Municipality, have received a major economic boost after the government extended a Shs100 million grant to the Goma Division Bodaboda Sacco as part of ongoing efforts to eradicate poverty and improve household incomes.

The funds, issued under government wealth creation and financial inclusion programmes, are expected to help riders expand their businesses, access affordable credit, and improve their livelihoods amid rising living costs and persistent youth unemployment in urban areas.

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Speaking during the Annual General Meeting held at their offices near Murs Gardens, Goma Division Bodaboda Sacco Chairperson Hussein Ddumba Kato described the initiative as a timely intervention aimed at transforming the bodaboda sector from a survival-driven activity into a structured and productive economic enterprise.

Ddumba noted that many young people in Mukono depend on the bodaboda industry for daily income, yet continue to face challenges such as limited access to affordable credit, high motorcycle rental costs, and a weak savings culture.

“This money is intended to empower riders economically and reduce poverty levels among families that depend on bodaboda business,” Ddumba said. “Government wants organized groups and saccos to become engines of development instead of remaining informal survival entities.”

He explained that part of the funds will be used to provide soft loans to members, support motorcycle ownership, and strengthen savings and investment initiatives within the sacco.

According to him, many riders spend years operating hired motorcycles and surrendering a large portion of their earnings to owners, a situation that keeps them trapped in poverty despite long working hours.

“We have so far given out 19 motorcycles to different individuals and we want our members to gradually own their motorcycles, save money, educate their children, and invest in other income-generating activities. This support from government gives hope to many young people who had lost confidence in improving their lives,” he added.

The bodaboda industry remains one of Uganda’s largest informal employment sectors, particularly among urban youth. In Mukono Municipality, it plays a key role in transport, trade, and the movement of people and goods.

Observers welcomed the funding initiative, noting that financially stable riders are more likely to improve service delivery and contribute positively to community development.

However, Goma Division Gombolola Internal Security Officer (GISO) Ismail Kadhumbula cautioned riders against rising cases of motorcycle theft, criminal infiltration, and insecurity within the transport sector, warning that such practices threaten both livelihoods and public trust.

He urged riders to remain vigilant, avoid carrying suspicious passengers at night, and always verify ownership documents when purchasing motorcycles or spare parts.

“We are concerned about rising cases of bodaboda theft and violent attacks targeting riders. Some criminals disguise themselves as passengers before robbing or killing riders and disappearing with motorcycles,” Kadhumbula said.

The Assistant Resident District Commissioner for Mukono Municipality, James Mutyaabule, encouraged cyclists to register with recognized associations and work closely with local security committees to help curb crime in the sector.

Assistant RDC for Mukono Municipality James Mutyabule hands over one of the motorcycles to beneficiary David Tukei during the distribution ceremony at Goma Division Sacco offices in Mukono Municipality.
Assistant RDC for Mukono Municipality James Mutyabule hands over one of the motorcycles to beneficiary David Tukei during the distribution ceremony at Goma Division Sacco offices in Mukono Municipality.

He also cautioned riders against drug abuse, reckless riding, and involvement in criminal gangs, noting that indiscipline continues to tarnish the image of the bodaboda industry despite its importance to the economy.

“The government will only achieve the intended goals if beneficiaries use the funds responsibly and maintain accountability within their sacco structures. We do not want this money to be mismanaged because the success of this programme depends entirely on transparency, discipline, and unity among members,” Mutyaabule said.

The grant comes at a time when government is increasingly promoting organized savings groups and cooperatives as tools for fighting household poverty, boosting employment, and stimulating grassroots economic growth.

Observers say empowering bodaboda riders through structured financing could significantly improve urban incomes while reducing unemployment-related crime among young people.

As beneficiaries welcomed the support, leaders urged riders to embrace unity, financial discipline, and security awareness to ensure the sector becomes safer, more productive, and economically sustainable for future generations.

Tags: Bodaboda GuidelinesMUDI-SaccoSaccoUpendo Sacco
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