President Yoweri Kaguta Museveni has committed to injecting Shs1 billion into each of the five mechanics’ SACCOs operating across Kampala’s divisions, in a major move aimed at improving livelihoods in the informal automotive sector.
Addressing mechanics and garage operators from Kampala and the wider Metropolitan Area at Kololo Ceremonial Grounds, Museveni said the funding will also be extended to neighbouring districts, with Wakiso and Mukono each allocated Shs1 billion.
He explained that the money will be accessed by individual mechanics through their SACCOs to acquire tools and equipment, with loans repayable at a simple interest rate of six percent per year.
Museveni said the decision to scale up funding followed the realization that the Shs100 million earlier disbursed to each SACCO was inadequate to meet the sector’s needs. He encouraged mechanics in Kampala’s five divisions to operate under a unified SACCO framework to enhance accountability and effective management of funds.
The President added that government will initially provide an additional Shs200 million before the elections, with the possibility of further support in the next budget cycle. He emphasized that the engagement was in his capacity as Head of State, not as a political candidate.
Museveni also announced plans for government to acquire land and establish fully equipped common-user garages, featuring modern machinery, breakdown services and wheel loaders. He clarified that all equipment procured under the initiative will remain government property and be used collectively by mechanics.
Raising concerns about accountability, the President ordered investigations into the utilisation of funds and equipment previously provided to mechanics’ associations in Kampala and Masaka.
He dismissed claims that the sector has been ignored, citing past interventions, and revealed plans to introduce a national health insurance scheme. Museveni further pledged to create special funds to support women working in garages and to help sex workers transition into alternative livelihoods.
Minister for Kampala and Metropolitan Affairs Hajjat Minsa Kabanda assured the President of strong support from mechanics for the National Resistance Movement, describing the sector as critical to Uganda’s socio-economic transformation.
Ms Hellen Seku, Commissioner at the National Secretariat for the Patriotism Corps and Private Secretary to the President for Youth Affairs, commended Museveni for directly engaging the mechanics and acknowledged the earlier Shs100 million investment in each SACCO.
Kampala Central Division Mayor and NRM Chairperson Salim Uhuru noted that improved leadership had restored order in areas such as Kiseka Market, which he said is now peaceful.
Mechanics’ representatives from Kampala, Wakiso and Mpigi outlined key priorities, including insurance, access to finance, land and structured representation, as the government signalled increased engagement with the informal sector as a driver of urban employment and wealth creation.