By Mathews Achola
Trade and cooperatives department in Busia County is considering partnering with Metropol and Trans Union Credit Reference Bureaus (CRBs) in sharing data of beneficiaries of the Cooperative Enterprise Development Fund (CEDF).
Chief Officer in the department Nelson Kwamini to Sacco Review the move to share the data is meant to ensure defaulters do not access finances from other institutions.
“CEDF is a revolving fund which borrowers need to repay; the need to partner with CRB will make it difficult for defaulters from borrowing more funds until they clear their current loans,” he said.
The law now allows Saccos to access records
of bad borrowers which had only been limited to banks to view classified
information.
Kwamini said making regular repayments will enable many borrowers to access the revolving fund, thus boost their businesses.
The department has to date disbursed over Sh80 million to various cooperative societies in the county, the latest being Sh18 million that was disbursed recently by Governor Sospeter Ojaamong.
Kwamini noted that many Saccos are unable to access loans for failing to audit their books of accounts, adding that no funds will be given to groups that engage in wrangles.
