By Emmanuel Gwakoi
Gusii Youth Bunge Savings and Credit Cooperative Society has embraced non youths as it embarks on an ambitious program to open more branches and expand its financial activities within Kisii and Nyamira counties.
The Society’s Chief Executive Officer Evans Makori said the management Board, chaired by Asha Moronya wants to open a branch in Nyamira County and Gucha Sub County to cope with increasing membership and uptake of loans.
“We want to buy land, built our main office and start a housing subsidiary to deal with real estates. The Sacco is stable financially and that is why we want to expand” Makori told Sacco Review.
He says the Sacco, with a capital base of Sh70 million and a membership of 6,540 has invested in Cooperative Insurance Company (CIC) and wants to attract more members to secure loans and invest to enhance their lives.
The management is set to start Front Office Savings Activities (FOSA) microfinance, clearing of cheques and upgrade its Information Technology (IT) to improve services to members.
“Plans are underway to start mobile banking services and bulky short text messages so that our members can access financial activities at the comfort of their homes” Makori explained.
Moronya says the Sacco was rebranded in 2018 to accommodate individuals aged 35 and above, saying it was to be unfair to leave out pioneers of the Sacco who started as youths but were no-longer so.
He revealed thatthe Sacco has disbursed Sh43, 612,800 loans to members this year, adding majority are female, and who secure the bulky of the loans and invest in various economic activities.
“We disburse loans to individuals and groups. They guarantee each other so that the loans are hundred percent secure” Moronya told Sacco Review.
Majority of the members who secure the loans, notes the chairman are employed, small scale traders, stressing the Sacco has adopted open policy to increase its membership.
To be a member, one registers with Sh500, buy 100 shares at a cost of Sh20 per share and save at least Sh500 per month for three months to qualify to secure a loan.
The official asserts the individuals and groups save before they secure the loans, adding the Sacco charges them at one percent per month and are guaranteed to be sustainable.
“For members who default in loan repayment, the Sacco recovers it from their savings or guarantors’ noted Moronya.
The Sacco partners with the counties, the national government through the Ministry of Agriculture and Development, Cooperative Bank, CIC, Kenya Union of savings and Credit cooperatives (KUSCCO) and the United States Agency for International Development (USAID). Moronya said the USAID trains staff and members on how to manage their businesses and projects to boost their incomes, repay the loans and seek more to boost their businesses, projects and other investments.
