By Munene Maina
Dimkes Sacco has tightened the noose on defaulters in a bid to enhance debt collection and loan book management.
In an aggressive loan recovery strategy, the Sacco collected in excess of Sh100 million in the financial ended 31st December 2017.
“Loan default has been a challenge but our resolve is to keep enhancing our debt collection. We will continue to ensure loans are paid promptly to enable us to serve the needs of our members,” said Caroline Gikonyo, the chairperson.
Gikonyo, who was addressing Sacco members during the Annual General Meeting at Bishop Kariuki Integrated College, said the Sacco had to auction some members property to recover loans.
“We are now reporting defaulters to Credit Reference Bureau (CRB) and referring the applicant to the same during appraisal,” she added.
The ratio of bad loans in the Sacco sub-sector has been a concern for management and regulator, given that the credit lending model in Saccos is mostly premised on guarantorship and the deposits collateral.
The non-performing loans ratio is recommended at five per cent by World Council of Credit Unions.
The Sacco recorded a significant growth in assets. Its total assets grew by Sh155 million to over Sh1.5 bil¬lion.