About Sebei Farmers SACCO

Sebei Farmers’ Savings and Credit Co-operative Society Limited (Sebei Farmers SACCO also referred to as the SACCO) was established in 2015 by a dedicated group of 31 farmers. Since then, it has grown exponentially to over 5,000 members and is fully registered by the Registrar of Cooperatives and regulated by the Uganda Micro Finance Regulatory Authority. Headquartered at Plot 1, Market Street in Kapchorwa Municipality, with a branch in Cheptare Cell, Chepsikunya Town Council, Kween District, the SACCO operates in the districts of Kapchorwa, Kween, and Bulambuli, with plans to expand to neighboring districts such as Bukwo district. Sebei Farmers SACCO’s mission is to empower rural communities for sustainable development through financial services, market linkages, and agricultural development services.

SNV – Sebei Farmers SACCO Partnership.

Sebei Farmers SACCO partnered with SNV's CRAFT project from 2019 to “Scale up Climate Smart Agricultural (CSA) Solutions for sunflower farmers in Sebei region.” The partnership aimed to support farmers at risk of climate change by strengthening access to drought-resistant seeds, post-harvest handling equipment and storage infrastructure, extension services in CSA practices and technologies, climatic and weather information, and crop insurance. Additionally, the partnership aimed at building the capacity of Sebei Farmers SACCO to operate profitably and effectively deliver services to its members.

To achieve the partnership objectives, CRAFT derisked the SACCO through a matchmaking grant focused on administrative and office costs, including staff salaries and extension service costs, capital investments such as the construction of a 1,000 MT warehouse, motorcycles for extension services, and training for SACCO staff and farmers. The grant was blended with tailored technical assistance in business development and advisory services, with a strong focus on improving internal capitalization, governance, and inclusion.

SNV’s Africa Biodigester Component (ABC) through its Result Based Finance partner Sistema bio leveraged on the partnership to promote biogas uptake in the region.

"The partnership contributed to transforming vital systems for a sustainable and equitable futures for all. Farmers are replicating CSA knowledge and practices/ technologies into other value chains to become more resilient. Over 70% of farmers in Kween district have adopted CSA practices and technologies to improve productivity having seen the benefits to the Sebei farmers. Now the district has integrated CSA practices and technologies in the extension messages. SEBEI is expanding to other sub counties using its own investments due to the willingness of other community members to join the SACCO, given the benefits." Patrick Cherotin, district extension officer

Key Sebei SACCO Successes 

Sebei Farmers SACCO has made remarkable strides in enhancing the livelihoods of its members through innovative business management practices and strategic partnerships. Over the past five years, the SACCO has significantly reduced interest rates on loans from a staggering 60% in 2019 to a more manageable 24% by 2024. This was achieved by increasing membership, which in turn boosted savings and revenue. The SACCO also revamped its loan products to better cater to the needs of local smallholders, introducing options like horticulture and biogas loans. Notably, the adoption of biogas technology has been driven by the need for alternative energy sources due to deforestation, further contributing to environmental sustainability.

“When I pitched our loan products to SNV in 2019, I felt challenged to do things differently, I am happy to report that our annual interest rates are down to 24% per annum” – Phelix Kwemboi, Sebei Farmers SACCO Chief Executive Officer asserted.

The SACCO's commitment to financial inclusion has also borne fruit. Through the scaling of the Village Savings and Loan Association (VSLA) model, the SACCO has grown from 14 to 93 VSLAs, with a significant focus on women and youth. This growth has been supported by digitization, which has improved efficiency, reduced costs, and lowered loan default rates. The SACCO's business diversification, including the creation of ECOSIYA Company for renewable energy and a cooperative for farm inputs, has further strengthened its resilience and capacity to serve its members.

“Bio-slurry has contributed to good yields, here is a 2kg potato and look at the size of our banana bunches” – Chemunungwa Semu Katika, former education director.

Partnerships have played a crucial role in the SACCO's success. Collaborations with organizations like Tulima Solar and Mukwano Industries have enabled the SACCO to offer better services, including access to quality agricultural inputs and assured markets for produce. Strategic investments, such as the construction of a 1,000MT storage facility in Kween district, have also enhanced the SACCO's ability to support smallholder farmers.

Sebei Farmers SACCO has made significant strides in promoting inclusion, particularly for women and youth. With targeted capacity building and affirmative actions, the SACCO has seen a 243% increase in women members and now boasts women in key leadership roles. This empowerment has allowed women to overcome cultural barriers and access productive land, further enhancing their economic opportunities.

Finally, the SACCO's promotion of climate-smart agriculture (CSA) has helped farmers adapt to the challenging climate conditions in the Kween lower belt. By adopting high-yielding, drought-tolerant crops and efficient post-harvest handling technologies, farmers have increased productivity and reduced losses. The SACCO has also promoted diversification into other value chains, such as sorghum and rice, and encouraged sustainable practices like tree planting and solar irrigation.

“This store serves all farmers during the season, we now have rice in stock but during harvesting season we usually bulk, sunflower, soybeans, sorghum etc., and we are planning to set up an oil extruder to add value to the oil crops” Limo Jan, Sebei Farmers' Cooperative Manager added.

Through these efforts, Sebei Farmers SACCO has not only improved the incomes and resilience of its members but has also positioned itself as a beacon of sustainable and inclusive growth in the region.

How the SACCO is tackling unemployment scourge in Sebei sub region.

In the heart of Sebei sub-region, where unemployment once cast a long shadow, Sebei Farmers SACCO has emerged as a beacon of hope and opportunity. Through a combination of strategic initiatives and a commitment to sustainable growth, the SACCO has not only transformed the lives of its members but has also created thousands of jobs in the region.

Over the past few years, the SACCO has empowered more than 5,684 individuals by creating on-farm jobs through profitable farming ventures. This has provided a steady source of income for many families, allowing them to improve their livelihoods. Additionally, the SACCO has directly employed 21 people, bringing in skilled professionals whose expertise has enhanced the organization’s efficiency and effectiveness.

This focus on professional development was initially sparked by a staff cost-sharing arrangement with SNV's CRAFT project, which highlighted the value of qualified and experienced personnel. Recognizing the difference these professionals made, the SACCO decided to retain all staff who had been part of the cost-sharing initiative, ensuring that the knowledge and skills they brought to the table would continue to benefit the organization and its members.

Thanks to sound strategic direction and a commitment to sustainable growth, Sebei Farmers SACCO has become a thriving business. Between 2019 and 2023, the SACCO's overall profitability across its three business arms soared from UGX 91,976,369 to UGX 320,504,989. Business turnover also saw a significant increase, growing from UGX 608,343,652 to UGX 1,132,892,300. This financial success is a testament to the SACCO's strong business foundation and its ability to adapt to changing circumstances.

Membership has grown substantially, with the number of members rising from 2,820 in 2019 to 5,684 by May 2024. This growth has been inclusive, with a significant increase in female and youth members. The SACCO's commitment to fostering financial security is evident in the rise in member savings, which have more than doubled from UGX 207,500,000 to UGX 516,247,882 during the same period.

Sebei Farmers SACCO's journey is a powerful example of how strategic planning, investment in people, and a focus on community development can tackle unemployment and drive sustainable economic growth. In a region where opportunities were once limited, the SACCO has become a lifeline, providing jobs, fostering financial independence, and creating a brighter future for thousands of families.

Lessons and Adaptation Measures.

The exponential membership growth has increased demand for loans and working capital among the members and SACCO, respectively. The SACCO is planning to invest in value addition machinery, which is essential for strengthening markets and increasing farmers' earnings, however current revenue streams will delay fulfilment of this ambition. In additional, the increase in production from the increased member base has superseded the Cooperative’s purchasing power, hence triggering side selling. The SACCO is focusing on expanding internal capital through retained earnings and share sales, while also seeking external capitalization.  

Conclusion

Sebei Farmers SACCO has transformed the socio-economic landscape of Eastern Uganda, empowering thousands of farmers through innovative financial and agricultural solutions. With its continued growth and impact, Sebei Farmers SACCO is poised to further enhance the prosperity and sustainability of rural communities in the region.

Story by SNV’s: Bashir Kasekende, Fredrick Kibira, Bonny Ocen with contribution from Sebei Farmers SACCO’s Phelix Kwemboi and Limo Jan.