Uganda’s oldest university which is known as Makerere University has decided to start its own bank and an insurance company because a lot of money is being made from the students and the staff by the present banks.Prof. Vanensius Baryamureeba, who is the Vice Chancellor of the university, said Makerere university bank ltd and the Makerere University insurance, will be opened in August this year since the buildings are ready so that the money can develop the workers at the university. He said a lot of money is being charged on the students especially when one wants aloan; he is given at 20 % which is too high and for the case of third party insurance for the staff vehicles, the university pays 500 million shillings and for travel insurance, it pays 1.5 billion Uganda shillings.
Prof.Baryamureeba said there is around 25billion shillings for the proposal and from February1, all the university accounts in Eco, Standard Chartered and Barclays banks are to be transferred to Stanbic bank and later to the university bank when opened. He said banks handle a lot of the university’s money like over 130billion shillings as university budget, 132 billions shillings as donor money for development projects. He also said there are around 40,000 bank accounts for the university students, over 4,000 for the staff, 10 billion shillings for the member staff in unsecured loans with the banks where their monthly salary is their guarantee.
Baryamureeba said because of the above, 2 billion shillings is the yearly interest earned by the banks from the staff so with the construction of the university bank, the staff will buy shares which shares will be extended to the public after being listed on the Uganda Stock Exchange.
