Gusii Youth Bunge Savings and Credit Cooperative Society chairman, Asha Moronya has said the society restructures members loans to ease their burden.
Members, notes the official have challenges repaying loans owing to global economic recession and it is necessary for the management to assist them.
“We restructure their loans and support them repay the loans to grow economically to continue patronising the Sacco,” Moronya said.
He spoke at Kisii Agricultural Training Centre during the Sacco’s Annual Delegates Meeting.
The Society’s loan portfolio for the period under review, noted the chairman was KSh66 million while total assets stood at KSh76 million.
He said Sacco had declared KSh1.3 million dividends to members, noting, part of it will be ploughed back to continue strengthening the Sacco.
“You cannot make a profit and squander all of it. You have to save some for a rainy day,” Moronya stated, emphasizing, they are obliged to give best services to members.
30 per cent of the surplus, noted the official, will be saved, adding it is based on the Sacco’s actual financial performance.
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Clifford Omosa, Sacco’s acting Chief Executive Officer said the staff is trained on risk assessment before giving members loans, adding, they assess loans to avoid challenges during recovery.
He said the sacco mobilizes funds from members and the management assesses disbursement and repayment, adding, the Sacco targets to recruit 1000 more members.
“We want to improve our loan book from 30 per cent to 50 to increase the Sacco’s interest and income,” Omosa said.
He said that the staff have targets and assess loans to be disbursed to avoid challenges in recovery, adding the Sacco’s income depends on the interest on loans.
He stated the Ministry of Cooperatives oversees the Society’s activities and gives it reports since it has no Front Office Activity (FOSA).
Moses Nyadiango, The Kenya Union of Savings & Credit Co-operatives Ltd (KUSCCO) Kisii branch manager said saccos offer cheap loans and urged members to save, secure loans, invest in viable projects or businesses to repay them and qualify for more to boost their lives.
Delegates resolved that the Sacco’s borrowing powers be capped at KSh5 million based on the 7 per cent or 8 per cent of the total assets.
By Emmanuel Gwakoi
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