By Erick Nyayiera
Jumuisha Sacco in Siaya County is the official intermediary of the Uwezo Fund in Bondo Constituency.
Bondo Constituency Member Of Parliament Dr. Gideon Ochanda and his Uwezo Fund committee signed an agreement that will see the Sacco take over the administration of the Uwezo revolving Fund.
The constituency Uwezo Fund committee had been complaining of the challenge of loan defaulters as many groups that benefitted failed to service their loans making it difficult to recover the monies and assist other needy economic ventures.
Jumuisha Sacco’s Finance Manager Bosco Aremo revealed that since they signed the agreement to be the intermediary of the Uwezo Fund with the Bondo Constituency, the Fund has begun to witness improvements in terms of loan recovery and members’ capacity to handle viable economic ventures.
“Before we intervened to act as the intermediary, the Uwezo Fund had given out Sh15 million to groups but had over Sh9 million still unrecovered reflecting 28 per cent recovery index. This was because members of the groups lacked proper empowerment and capacity to manage their businesses and give desired economic results,” he said.
He said the Jumuisha purposed to inculcate the Sacco culture in all the groups where they will be trained on prudent financial management and all other aspects necessary for ensuring positive business outcomes.
Uwezo Fund will give the money to the viable business groups then they join the Jumuisha Sacco where they buy shares with the Sacco.
The Jumuisha Sacco will in turn multiply their loan threefold and give it to the members at very cheap rates which prompts profitability in the eventual end.”
“Since April 2021, when the intermediary deal was inked, the Sh1.1 million that was given the groups via the Sacco has already been recovered and payed to the Fund account and in July 2021, the Uwezo Fund will be giving the business groups another tranche of Sh10 million to 60 groups which means that as a Saccco we will be able to give them Sh30 million and ensure they grow their businesses,” said Bosco Aremo, the Finance Manager, Jumuisha Sacco.
Jumuisha Sacco formerly Bondo Teachers Sacco opened a common bond in 2019 to allow business people reap from the benefits of the Sacco movement and currently has grown from a membership of a 1000 to over 2000.
Bosco however regretted that the mass retirement of teachers has hurt the teachers’ Sacco movement.
He also decried the late remittance of deduction of teachers’ contribution to the Sacco.
The Finance manager also noted that they are well prepared to give school fees loans to the members ahead of Form one admissions and are currently receiving applications.
