By Staff Reporter
Maktaba Sacco members have been given a notice to clear any outstanding loans they owe the society or risk being registered with the Credit Reference Bureau (CRB).
The society indicated that to enhance their loan recovery mechanisms, it had registered with CRB to report those who do not conform to the regulations.
“Members with non-performing loans are hereby notified to clear them or visit the Sacco office within 30 days to agree on acceptable repayment plan,” the notice reads in part.
It further states that “Non-performing loans (unpaid for 90 days) will be listed as provided under section 18 of the Credit Reference Bureau Regulation 2013.
Once registered with CRB, members will not be able to access loans with any financial institution subsequently eroding their credit worthiness.
It noted that loans listed with CRB will remain listed for a period of 5 years after the loans are cleared and this will affect access to credit from other financial institutions in future. It joins other societies that have registered with the bureau to recover loans they had extended to their members.
Founded more than 30 years by employees of the Kenya National Library, who form 90 per cent of its current membership, it has opened its common bond to attract new members from other government institutions besides those from the business community.
Senior Deputy Commissioner in the State Department for Cooperatives Mr. Geoffrey Njang’ombe noted that non-core members might take advantage of the loose connectivity with the Sacco to default.
