Commissioner for Co-operative Development David Obonyo has challenged Savings and Credit Cooperative Organizations (Saccos) members to focus on getting affordable loans from their Saccos rather than high dividends.
Speaking during the recently concluded Hazina DT Sacco Annual Delegates Meetings (ADMs) in Nairobi, he asked members to have long term investments through the Saccos, since co-operative societies work in best interest of members. “Make use of your Saccos by taking loans and starting businesses, you should not be giving too much pressure on getting dividends every year,” he advised.
The commissioner also asked Saccos to start mortgages products for members to acquire properties at affordable prices.
He also challenged participants in all Saccos to interrogate figures presented to them during the ongoing ADMs around the country and should elect people of high integrity and good character to take care of their resources.
He said governance is a big issue in most co-operative societies and added that most Saccos become bankrupt because of delegates decisions; some demand extremely high dividends that make the institutions struggle financially.
Hazina Sacco Chairman Evans Kibagendi asked members to take loans, which he said are of lower interest rates compared to other Saccos and banks.
He added that the Sacco has invested immensely in training its members to make the right decisions on their investments.
By Obegi Malack/ obegimalack@gmail.com
