JAIL LOOMING! Police's Exodus SACCO Bosses Face 6-Month Jail Term

Lawyer Steven Kalali has asked the High Court to jail three officials of Exodus Police Co-operative Savings and Credit Society Limited for six months over alleged contempt of court, accusing the institution of continuing to deduct contributions from police officers’ salaries despite a ruling declaring the deductions unlawful without their consent.

In an application filed before the Civil Division on Thursday, Kalali is seeking 200 million shillings in general, punitive, exemplary and aggravated damages, as well as a 300 million shillings fine against the SACCO.

He wants the court to order the imprisonment of the SACCO’s chairperson, secretary and chief executive officer if they are found responsible for the alleged contempt.

The application follows a July 15, 2026 ruling by Acting Civil Division Judge Bonny Isaac Teko in Case No. 28 of 2025.

The judge declared that monthly salary deductions for SACCO contributions were unlawful where free and informed consent from the affected officers had not been established.

Kalali alleges that Exodus SACCO continued making the deductions in July and August, despite being aware of the ruling. He says the continued deductions violated the court’s orders.

Court documents indicate that the SACCO was aware of the decision and filed a notice of appeal and requested a copy of the record of proceedings on July 16, a day after the ruling.

In his supporting affidavit, Kalali says he repeatedly wrote to the SACCO seeking compliance with the judgment, but the efforts did not stop the deductions.

He also submitted bank statements belonging to Eliphaz Isabirye, a police officer recruited from the 19th intake, which he says show that deductions continued after the ruling.

Kalali further accuses the SACCO of refusing to allow members who wish to leave to withdraw their membership. He argues that the continued deductions and restrictions undermine the constitutional rights the court sought to protect.

The July ruling directed the Attorney General to guide the Uganda Police Force and Exodus SACCO to ensure that no serving officer is recruited into the SACCO, or subjected to salary deductions for that purpose, without documented, free and informed consent.

The court also ordered the SACCO to give affected officers a documented opportunity to decide whether to remain members or leave without penalty.

Those who opt out are entitled to access their accumulated savings and any accrued dividends.

The judge further directed Exodus SACCO to conclude its pending application for a licence from the Bank of Uganda. If the licence is not obtained, the institution would have to stop accepting new deposits and disbursing new loans, while continuing to service existing loans and maintain the accounts of members who choose to remain.

The Registrar of Co-operatives was also directed to audit the SACCO’s membership records and accounts relating to officers recruited from the 2015 intake and report the findings to the court within nine months.

In a letter dated September 4, 2026, the Office of the Solicitor General told Kalali’s lawyers that it had taken steps within its mandate to facilitate implementation of the judgment.

The letter, signed on behalf of the Solicitor General by Martin Mwambutsya, referred to an earlier request for intervention dated July 17 from M/s Mwina-Wananda & Co. Advocates.

The Solicitor General’s office acknowledged that the court had found the recruitment of officers without their free, express and documented consent to violate Article 29(1)(e) of the Constitution, which guarantees freedom of association.

The office said it had communicated guidance to the Uganda Police Force requiring compliance with the court orders and protection of serving officers’ constitutional rights.

In a separate communication, Deputy Solicitor General Charles Ouma outlined measures the police should take, including preventing enrolment into Exodus SACCO without documented consent and stopping salary deductions for membership or contributions unless officers have expressly agreed in writing.

The police were also directed to review their policies and administrative procedures on SACCO membership and salary deductions, and establish mechanisms to prevent future violations. The guidance was intended for circulation across police directorates, departments, units and formations.

However, Kalali’s latest application alleges that deductions continued after the ruling, raising questions about whether the directives were fully implemented.

He argues that the court’s decision would be rendered meaningless if the SACCO continued the disputed deductions. He says the alleged violations have caused financial and psychological distress and forced him to incur additional legal expenses while pursuing enforcement of the judgment. Kalali is asking the court to award the damages and impose the sanctions sought in the application, together with the costs of the proceedings.

The SACCO has yet to file its defence to the latest application, which is awaiting a hearing.
The SACCO is yet to put it in its defense before the matter is fixed for hearing.