Hijaz Community Sacco Reenergizes following slow uptake of services 

By Bakari Ssettumba

In a move to revitalize its operations and strengthen its position as a leading Sharia-compliant financial institution, the Hijaz Community Sacco held its 4th Annual General Meeting (AGM) on Saturday, June 28, 2025, marking a turning point for the cooperative.

The event, attended by key stakeholders, religious leaders, and members, served as both a reflection on past challenges and a roadmap for the future, with a renewed focus on financial discipline, strategic restructuring, and member education.

Since its establishment in 2022, the Sacco has faced hurdles in member engagement, with many treating it as a conventional bank rather than a savings and loan cooperative.

Frequent withdrawals and loan misallocation have hampered liquidity, limiting the institution’s ability to provide financing for critical needs, including its core mission of making Hajj more affordable.

Recognizing these challenges, the newly elected Board Committees announced a strategic review period, giving themselves until December 2025 to refine policies, redefine the Sacco’s mission, and implement stronger governance structures.

Imam Kasozi, one of the event’s key speakers, cautioned members against misusing loans for non-productive purposes.

“Some of you take loans to fund extravagant weddings and social events simply to maintain appearances,” he said. “This contradicts the principles of Islamic finance. Loans should be used to grow businesses, support education, or meet essential needs—not to fuel unnecessary spending.”

A major resolution from the meeting was the imposition of an October 2025 deadline for outstanding loan repayments, a measure aimed at stabilizing the Sacco’s finances and ensuring fair access to funds for all members.

Looking ahead, the leadership remains optimistic. By realigning operations with core Islamic financial principles and fostering greater member discipline, Hijaz Community Sacco aims to emerge as a sustainable, member-driven institution that not only facilitates Hajj savings but also empowers Muslims through ethical banking.