KAMPALA, UGANDA — President Yoweri Museveni has extended financial support totaling Shs 2.8 billion to youth groups in Kampala’s informal settlements. This initiative is part of his broader effort to strengthen Savings and Credit Cooperatives (Saccos) operating in these communities.
During a ceremony last Thursday, Museveni distributed Shs 1.3 billion to youth in Nakulabye slums, located in Rubaga Division. Additionally, he allocated Shs 500 million to the Katanga Young People Cooperative Society in Kansanga, Makindye Division, and another Shs 500 million to Kampala Capital City Authority (KCCA) councillors under their Economic Agenda Sacco.
The program, led by Brig Gen Chris Damulira, the Director of Crime Intelligence, seeks to provide economic opportunities for disadvantaged youth while reducing crime in Kampala’s informal settlements.
“H.E. the President, Yoweri Kaguta Museveni has reinforced support for Kampala ghetto Saccos by fulfilling additional financial commitments. This follows the success of a pilot project led by Brigadier General Ddamulira and Major Emma Kuteesa, which has economically empowered ghetto youth and reduced crime,” said police spokesperson Kituuma Rusoke.
With this recent contribution, the total funds allocated to youth in Kampala’s slums over the past two years have reached Shs 7 billion. In September of the previous year, President Museveni provided Shs 1.2 billion to seven ghetto-based groups, including Kawempe North Ghetto Cooperative Society Ltd, Masajja Para Zone Ghetto Youth Development SACCO, and Kasokoso Ghetto Cooperative Society Ltd.
In December 2023, a further Shs 3 billion was distributed, with each of the 30 ghetto groups receiving Shs 100 million. However, political analysts argue that despite the significant financial injections, the impact on the targeted beneficiaries remains limited.
Opposition figures Siraje Kifampa and John Kikonyogo claim that the funds do not lead to lasting economic transformation, as many recipients are not financially equipped to manage and sustain the resources effectively.
“When you give money to someone who is sleeping hungry, they will just spend it on buying items that give them a decent life. They cannot invest in a business when they are sleeping hungry. Besides, this money in most cases goes to very few individuals who claim to be the leaders of these ghetto groups,” Kikonyogo said.
Kifampa raised similar concerns, emphasizing that President Museveni should hold these groups accountable and evaluate whether the funds have contributed to sustainable businesses. He argued that residents of informal settlements rarely benefit from such financial aid, as self-appointed leaders often mismanage the funds.
Beyond financial mismanagement, some of these groups have reportedly evolved into criminal gangs. For example, a group known as “Al-Qaeda,” based in Kibuli, was involved in a violent altercation last December, resulting in the death of one of its members. In response, security forces dismantled their makeshift structures.
Kikonyogo, on the other hand, suggested that instead of distributing cash, the government should prioritize creating market opportunities for skilled youth to ensure long-term economic growth.
