The SES in the Army was implemented in the last Quarter of the Calendar Year 2005. It was part of Welfare Scheme which was implemented together with Wazalendo SACCO. The intention of the Army Leadership was to organize easy and affordable credit to UPDF Personnel through Commercial Banks as a short term strategy in order to let Wazalendo SACCO grow and take over that function.

THE MoD/UPDF signed a Memorandum of understanding with some Commercial Banks on the following dates:-
Stanbic Bank 10 Oct 2005
Post Bank 20 Nov 2005
Centenary Bank 09 Dec 2005
Barclays Bank 2009

All the Memorandum were to run for two years. However, the banks have continued to offer SES loans to UPDF personnel up to Nov 11 when it was suspended because of high interest rates on loans. It should be noted that there are other banks which did not sign agreement with MoD/UPDF but the Army Leadership left the personnel free to access loans from those banks.

Historical roles of the SO I/C SES Loans

In the early days of the Scheme the Officer worked under the UPDF GHs loans committee which was chaired by the Director of loans and welfare. Other Committee Members were:-

DOR Member
DOF Member
D/Admin-CPA Member
Representative FM CLS Member
I.O GHQs Member
SO I/C SES Member

The function of this Committee was to vet all loan applications and forward good ones only to JCOS and COS-LF for clearance to banks. However this Committee withdrew from its function unceremoniously and left the whole responsibility to SO I/C SES.

Terms and Conditions of Acquiring a Loan (SES)

  1. A recommendation from mother Unit
  2. Correct particulars
  3. Applicants must have served in the UPDF for 03 years (officers) and four years (militants)
  4. Officers/Men Re-instated must have served for a period of six months before applying
  5. Should not be servicing other loans.

Achievements and Challenges

Since inception in 2005, many Officers/Men of UPDF have benefited from the scheme. They were able to sort out emergency problems like:-

Paying school fees for their children/themselves

Paying Medical bills incurred during admission in private hospitals

Acquiring assets including houses.

one challenge has been the high interest rates by the commercial banks.

Salary Earners Scheme Organizational Structure