Kericho County Commissioner of Cooperatives Dr Leonard Otii has said defaulters on loans and those who delay repayments are denying other members a chance to use the same facility.
Speaking during Simba Chai Sacco’s Annual Delegates Meeting (ADM), Otii was concerned about the high rates of delinquency witnessed in some societies, which he cautioned the delegates to curb in its early stages before it cripples the operations of their Sacco.
“I want to emphatically call on you delegates to go round your areas of operation and educate your members on the need to honour their financial obligations and repay their loans on a time,” said Otii.
The chairman of the society Dr Joseph Mitei told the delegates that the Board of Management will do its best to avoid borrowing expensive external loans.
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He said the priority of the board is to build the members’ saving culture, which in the long run reduces the dependency on external loans.
“This is the surest route to enabling us to be self-reliant and be able to repay our loans on time,” said Mitei, telling delegates the board will not shy away from making unpopular decisions, but which are beneficial to them in future.
“We all have heard of societies that made very popular decisions, like increasing dividends to unrealistic percentages, which did not reflect real growth. They are no longer in existence; they collapsed,” he observed.
On his part, the Chief Executive Officer Wesley Ng’eno said the society was diversifying on its membership, citing welcoming of members from sugarcane and coffee marketing societies.
He thanked delegates for their aggressive recruitment drives and the growth of the society in all parameters, observing that the Sacco has met all prudential requirements by the regulator, the Sacco Societies Regulatory Authority (SASRA.)
During the meeting, delegates voted out their external auditor on grounds of not meeting timelines.
By Benedict Ng’etich
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