By Benedict Ng’etich
The chairman Sotico Sacco Samuel Munyao Nzeki says they faced challenges because of member’s defaulting on loan repayment.
He told delegates that they tried to assist members having huge unbearable loans by amalgamating them but the process was only a short term remedy.
“That is because members found themselves in default again after a short while due to additional loans,” said Munyao.
Another challenge was the situation where some members left employment just when they had taken loans and their terminal benefits were insufficient to cover their balances especially the seasonal employees.
Munyao asked members invest more savings on their unwithdrawable deposits which is a key multiplier for the amount to be loaned.
He urged delegates to be keen on member’s repayment history when issuing loan forms to avoid defaulting.
He also asked them to avoid the high dependency on loans as the only source of finance and also cautioned them to be wary of the proliferation of shylocks.
“Let us advice and continue training our members to avoid such traps of people taking Sh500 interest for every Sh1000 they repay over a period of 1 or 2 weeks which is a burden that no one should shoulder.
The Chief Executive Officer Everline Moraa Nyokwoyo thanked the board, delegates and members for being supportive of the operations of the society.
She said they were doing everything possible to satisfy the needs of the members despite the current challenging economic situation.
The Sotik Sub County Co operative Officer Wesley Cheruiyot, lauded the society for practicing prudent fiscal management and urged them to adapt innovative ways of transacting business.
