Umwalimu SACCO, the financial institution for teachers, has urged parents, guardians, and school administrators to adopt the School Data Management System (SDMS), which allow for online payment of school fees.
The system enables faster payment of school fees and prevents the misallocation of money, according to Laurence Uwambaje, the Director General of U-SACCO.
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Uwambaje said this on Tuesday, July 29, as she appeared before parliament in response to findings from the Auditor General’s report for the fiscal year 2024/25, which revealed that some payments were diverted to the wrong accounts.
"For example, We recorded 670 transactions worth Rwf60 million that were sent to the wrong accounts, affecting 43 schools before the money was eventually redirected to the intended institutions," the official told the Parliamentary Committee on Education, Technology, Culture, Sports, and Youth.
"Some payments meant for school fees were mistakenly deposited under the Dusangire Lunch account or any other options from different accounts outside Umwalimu SACCO.”
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Uwambaje said that stakeholders should make school payments exclusively through the School Data Management System used by Umwalimu SACCO, and not through other financial institutions still being used by some schools. This could eliminate outdated and error-prone payment channels.
"Not all schools and parents have subscribed to the initiative of using only SDMS through Umwalimu SACCO. More awareness is needed, as many people still perceive the SACCO as exclusively for educators. Some continue using other options, especially in rural areas, where reluctance is more common,” she said.
"This highlighted the need for further awareness campaigns, which have helped improve adoption and ultimately increased Umwalimu SACCO’s cash and deposits for transactions,” she added.
Uwambaje noted that towards the last quarter of 2024 alone, schools using Umwalimu SACCO accounts contributed to a revenue increase of over Rwf2 billion, as a result of outreach efforts encouraging parents to register and pay through SDMS.
"We look forward to seeing every parent or guardian pay children's school fees through Umwalimu SACCO account,” she said.
Uwambaje explained that the system is now stable and efficient, with automated accounting and reconciliation features. However, some parents remain hesitant to use it, mainly because some schools still require print payment slips, which contradict the purpose of an online system.
"That’s what we’re trying to avoid. If parents are still asked for payment slips, they will be forced to visit our branches, most of which are at the district level. This is time-consuming and delays payment approvals. Schools need to fully adopt the system. We’re in a digital era,” she said.
She also mentioned that awareness efforts are ongoing and that banking agents are being integrated into schools. This will help those facing challenges, particularly schools still requesting receipts and individuals reluctant to use online payments.
"Agency banking could be rolled out starting in September. We’ve already begun the necessary procedures,” she said.
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Tracking school expenditure through SDMS
Beyond fee collection, Umwalimu SACCO is also planning to launch a school expenditure management system. The platform will allow schools to digitally manage and track their budgets and spending. This will help in financial discipline, improve transparency and efficiency in managing school budgets Uwambaje argued.
"We’ve already integrated school fee contributions and are now moving into expenditure tracking. We’ve completed a successful user acceptance test and expect to go live on August 5,” she said.
"We’ll begin the pilot phase with 10 schools, but training will come first. This pilot will give us a clear picture, and eventually, all schools will be included,” she added.