News

High loan default rates hit Saccos

Vincent Chisaka Kenya Bankers Sacco National Chairman

Defaulters to lose property in stringent loan recovery measures By Jackson Okoth Deposit-Taking Saccos have warned members of stringent loan recovery measures that include use of debt collectors and Credit Reference Bureaus to lock out loan defaulters from accessing Sacco products. The rate of non-performing loans has been on the rise in the Sacco sub-sector. This has led some Saccos ...

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Well-oiled rural saccos invade major towns

By Jackson Okoth Ol-Kalou-based Tower Sacco in Nyandarua County is set to open new branches in Nairobi and Narok counties, as more rural-based Saccos eye new opportunities and businesses in major urban centres. Most of these Societies are targeting women, the youth and those engaged in small and medium sized enterprises. Those who are engaged in the informal sector in ...

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Sacco Micro-Credit facility fails to take-off

By Jackson Okoth A growing number of deposit-taking Saccos are reviewing their strategy on recruitment and lending to members involved in the informal and micro enterprise sectors. This has been occasioned by the high default rates by members from informal businesses. One such player is Wanandege Sacco Society, which has stopped recruiting members from the business community and shifted its ...

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You can now use movable property as Sacco loan collateral

By Munene Maina Sacco members have the alternative of using movable assets as collateral to secure loans. This is in addition to the traditional use of land and chattel collaterals. “This will in effect greatly improve the ease with which consumers can access credit facilities from the financial lenders; while at the same time securing the interest of financial service ...

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Tussle rocks the relocation of coffee co-op factory

By Talarus Chesang Baringo coffee farmers have opposed ongoing plans to relocate a multi-million coffee factory from Katimok Forest in Baringo North to Koibatek Agricultural Training Centre (ATC) in Eldama-Ravine. Residents put on the spot the County Governor Stanley Kiptis over earmarked relocation of the Sh100 million-worth coffee factory. “Construction of the modern Coffee Milling Plant is now set to ...

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Sh9.9bn loan defaults strain Saccos

By Munene Maina Delay in remittance of loan repayment deductions by the National and County governments is causing headache for Sacco bosses. This has seen the growth rate of non-performing loans (NPLs) for most Saccos derailing growth in their businesses. New Sacco Societies Regulatory Authority (SASRA) survey also indicated some governmental institutions particularly public universities, research institutions and parastatals contribute ...

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Watchdog to set service delivery standards in Co-op Sector

Former IG, Joseph Boinett presenting a gift to Internal Security CS, Fred Matiangi during the Kenya Police Sacco recent Annual General Meeting. Looking on is the society's National Chairman, David Mategwa. Photo Wesley Ken

By Munene Maina A new body to set standards of training and hiring of co-operative employees has been launched. Staff members in all co-operative societies will now undergo thorough vetting to ensure they meet the requisite academic qualifications before they are allowed to serve. The outfit, made up of scholars and experienced co-operators, is also expected to come up with ...

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New pesticide tax will hit farmers hard, lobby warns

Kibugu Farmers Co-operative Society Chairman Robinson Ngano inspects coffee in his farm in Kibugu area of Embu County. Photo/Kamundia Muriithi

By Our Reporter The agriculture sector is at risk of lowered productivity if the Government does not revert to zero-rated pesticides, according to Evelyn Lusenaka, Chief Executive Officer of the Agrochemical Association of Kenya (AAK). The organization has opposed the introduction of 16% VAT on pesticides saying the new tax will raise operations costs for farmers, making it even more ...

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Horticultural Sacco share capital grows

By Boniface Mulu The Chairman of the Kitui Horticultural Farmers Savings and Credit Cooperative Society Limited David Matheka has announced that the society’s share capital stands at Sh3.5 million. He said the society plans to raise the share capital to Sh10 million by the year 2020 and increase its membership to 500. Matheka said currently the society has a total ...

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Co-ops challenged to reap from Big Four Agenda

Newton Nderitu, Chairman, Nyeri Co-operative Union. Photo/Asa Maina

By Asa Maina Housing co-operatives have been urged to focus and broaden to outreach individual members so that they can join the corporate ownership of houses and improve the quality of their homes. The Chairman Nyeri County International Co-operative Alliance (ICA) celebrations committee Newton Nderitu said high interest charged on mortgages have made it difficult for many people to own ...

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