Why police’s oldest savings group is stunted as the young one grows

NEWS ANALYSIS | URN | The mandatory letters of undertaking for savings, low visibility and conservative investment have been blamed for slow growth of Police Savings Association Limited-PSAL which has only 2,900 members out of over 56,000 police officers in the entire force.

PSAL leadership wants police management to scrap the requirement for a letter of undertaking for savings. The association also plans aggressive recruitment in training schools and diversification into building materials, real estate and events management to grow savings, assets and membership.

The concerns were raised by Chairperson Senior Commissioner of Police Christine Nanding during the PSAL’s 6th Annual General Meeting held at Nsambya Sharing Hall on Saturday.

Nanding said PSAL has existed for over 36 years but have suffered mass exit of members between 1990 and 2000 and has since stagnated at 2,900 members despite its net worth growing to Shillings 21.8 billion. This is far below its younger rival, Police Exodus SACCO, formed in 2007, which now has 43,063 members and Shillings 96.8 billion in total assets according to its 13th AGM held in April 2026.

PSAL brings together both serving and retired officers who benefit equally, invests in money markets and rentals. But, Nanding said, the biggest hindrance is the requirement for a letter of undertaking to effect salary deductions even when an officer only wants to save.

“We think the letter of undertaking should suffice when I am getting a loan,” Nanding said. “It shouldn’t apply when I am to save because the monies are ours. We should have the ability to make a decision without any encumbrance. We appreciate that management put that cap for letters of undertaking to avoid wanton deductions, but this has hampered the saving culture of many officers.”

She asked police management to scrap the requirement for savings to encourage more officers to join. She further called on management to embrace PSAL just like they have pampered Police Exodus SACCO, saying PSAL is the firstborn child of police officers’ welfare.

Nanding  also said PSAL now plans to conduct aggressive marketing in training schools and barracks, leveraging low interest rates and dividends to attract young officers joining the police force.

But SCP Timothy Halango, Deputy Director Welfare, Production and Sports who was the chief guest of this year’s  AGM, said PSAL’s leadership is too conservative and invisible compared to Exodus, which is one of the reasons its numbers remain low yet it is older.

“You are still behaving like the prodigal son being chased from home,” Halango said. “You are a loved child. How can this good association only attract 2,900 out of 56,000? Every day officers look for money from loan sharks because we are not marketing this association,” Halango said.

He noted that welfare is one of the five strategic priorities of police management, which last financial year constructed 2,000 housing units in 200 sub-county stations. He said construction will continue for the next 10 years, which presents an opportunity for PSAL to expand its income-generating projects and improve visibility among officers.

He said with Shs21.8 billion and 2,900 members, each member is on average worth about Shs7 million, but with more members, the pool would grow and become a force to reckon with. Halango urged delegates to be ambassadors and engage the Directorate of Welfare daily, instead of only calling the Director every four years for AGM.

The current PSAL’s total asset base stands at Shillings 10.4 billion, fixed deposits at Shillings 3.8 billion, with over 10 billion worth of loans disbursed. The current loan book stands at Shillings 12 billion with total net worth of Shillings 21.8 billion. On average, 1,500 members access loans annually.

Share on: WhatsApp