Tanzania steps up efforts to protect cooperative bank shareholding

By Katare Mbashiru

Dodoma. The Registrar of Cooperative Societies, Benson Ndiege, has directed the Board of the Union of Cooperative Shareholders (UJE) to strengthen its operational, financial, and strategic capacity to safeguard cooperative societies’ majority ownership in the Cooperative Bank.

UJE is the company that holds 51 percent of the bank’s shares on behalf of cooperative societies nationwide.

Dr Ndiege said the move is crucial to protecting and sustaining the controlling stake of cooperatives in the bank, describing UJE as the “eye of the Registrar within the bank.”

Speaking in Dodoma on Wednesday, January 28, 2026, during the official introduction of the UJE Board, Dr Ndiege said the establishment of UJE reflects the government’s commitment to reviving and strengthening the cooperative sector, as well as the creation of the Cooperative Bank as a key vehicle for the economic empowerment of cooperative members.

He noted that through the initiative of President Samia Suluhu Hassan, the government provided an initial capital injection of Sh5 billion to cooperative members, a step that boosted confidence and strengthened the societies’ capacity to invest in the bank.

To enhance transparency and shared understanding, Dr Ndiege instructed the UJE Board to convene a general meeting of all members before March 31, 2026.

The meeting will outline the organisation’s vision, strategies, objectives, and long-term investment direction within the bank.

The Registrar also directed the board to design and implement a robust mobilisation strategy to attract cooperative societies that have not yet invested in the bank.

He explained that the remaining 49 percent shareholding will remain open to give more societies adequate opportunity, education, and encouragement to participate.

“UJE cannot operate without a clear vision. It must organise itself early, advertise leadership positions openly, establish reliable income sources, and ensure the bank secures a stable market through its own members,” said Dr Ndiege.

He further instructed UJE to prepare and submit regular performance reports on the bank, adding that his office is ready to offer any professional support needed.

UJE Board Chairman, Profr Gervas Machimu, said the directives provide a solid foundation for ensuring the bank remains under cooperative ownership.

He emphasised the responsibility of entrepreneurs and members to protect the collective institution.

“We will not sabotage the bank. We will continue mobilising cooperative members to invest based on the principles of cooperation and respect for others’ interests,” said Prof Machimu.

He revealed that more than 1,540 members have already invested and that all board members come from cooperative societies.

UJE Chief Executive Officer, Ms Daria Rotu, said the organisation is starting operations with more than 1,000 members and will focus on identifying the real needs of the societies it supervises to work with the bank to develop user-friendly products and services.

“We are not weak. We understand the societies we oversee and their rights. We will ensure they receive appropriate services and investment opportunities,” she said.

Ms Rotu added that UJE is a joint initiative of the investing societies, noting that 1,534 societies have so far purchased shares and become members.

The overriding goal, she said, is to ensure cooperative ownership never falls below 51 percent throughout the bank’s existence.

Meanwhile, Cooperative Bank Managing Director, Mr Ng’ura Godfrey, said the partnership marks a historic milestone.

“We are writing history together. We must not repeat past mistakes. This is an institution of cooperative members, and we want this partnership to remain sustainable as capital continues to grow,” he said.