Digital loans a threat to Saccos, Director laments


Garissa county Director of Cooperatives Samuel Karanja has expressed concern that with the aggressive mushrooming number of digital money lenders, the Sacco movement stands threatened.

Speaking to Sacco Review in his office, Karanja lamented that the other challenge Saccos face is high loan defaults owing to the harsh economic times.

“Most people opt for digital money lenders because of the convenience of not having to save first before qualifying for a loan,” he said, adding that the Saccos need to be more aggressive and innovative to stay afloat.

A client receives a loan from one of the digital lending platforms. Garissa County Director of Cooperatives has lamented that the high uptake of digital loans poses a threat to Saccos.

“Unless we walk the talk and our up our game, we are going to find ourselves thrown under the table as leftovers,’’ he lamented.

He urged Saccos to create an avenue of reaching more members and to come up with affordable and tailor made products that meet members’ needs.

By Amoto Ndiewo

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