Commodities

Army Sacco signs MoU with Post Bank

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By Benjamin Jumbe

Posted  Wednesday, January 15  2014 at  02:00

In Summary

Soldiers had to travel long distances to access their savings.

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Kampala

Soldiers and other defence ministry staff will no longer have to travel to Bombo to access their savings.

This follows the signing of a memorandum of understanding between the army’s Wazalendo Savings and cred cooperative (Sacco) and Post Bank Uganda Limited.

Speaking during the signing ceremony at the army headquarters in Mbuya on Friday, the chairman Wazalendo Sacco, Brig Dibba Sentongo, said the decision to get into this partnership was prompted by the challenge of soldiers having to travel long distances to access their savings.
“This has been a very big problem with just one service centre at the land forces division headquarters in Bombo, but with this partnership soldiers will access their savings from wherever they are without having to travel to Bombo.” Brig Sentongo said.

He said this will be more convenient for the members, noting that the lack of easy access to cash delivery channels had also negatively impacted on the image of the Sacco as well as the savings reserves.

Citing members especially those serving with the African Union Mission in Somalia troops, Brig Sentongo said the limited services had forced them to “virtually withdraw all their savings in one go and take them to other financial institutions causing a liquidity shortfall at WSacco.”

Speaking at the same event, the bank’s managing director, Mr Stephen Mukweli, said linkage banking was the way to go because it improves access to financial services. He says in addition to increasing the number of the bank ATM machines to 43 by end of the year, they have signed up with Interswitch to make use of their 104 ATM machines as well.

bjumbe@ug.nationmedia.com