A Critical Review of Governance Structures and Institutional Sustainability of Savings and Credit Cooperatives in Uganda

Abstract

This paper evaluates the intersection of corporate governance and the long-term sustainability of Savings and Credit Cooperative Societies (SACCOs) in Uganda. Integrating agency, stewardship, and resource dependence perspectives, the study examines how board attributes, autonomy, diversity, financial expertise, and structural size shape operational outcomes, including loan portfolio quality, capital adequacy, and financial sustainability. The synthesis indicates that while professionalized governance correlates with enhanced institutional metrics, Ugandan SACCOs are compromised by structural capacity deficiencies, elite capture, political interference, and informal social hierarchies that override formal controls. Cross-border evaluations from Kenya, Tanzania, Canada, and Scandinavia demonstrate the benefits of institutionalized board autonomy but highlight the friction of transplanting sophisticated governance frameworks into resource-constrained economies without adaptation. The review outlines targeted interventions: mandatory board development and certification, socio-financial performance metrics, and a developmental regulatory framework led by the Uganda Microfinance Regulatory Authority (UMRA).