. By Joseph Mukubwa
Nakonn Sacco Limited gross income improved from Sh2.28 million to Sh4.35 million in the last financial year.
The Sacco chairman, Geoffrey Kamau expressed optimism that the institution would record more growth this year.
He said vans belonging to the society registered an impressive income during the year with gross income of Sh6.92 million.
“The vans are also marketing our Sacco and making us recognized. We also bought one more vehicle which is doing very well,” Kamau announced.
The chairman was speaking during the Sacco’s 15th Annual General Meeting (AGM) held recently in an Othaya hotel, Nyeri County.
He presented a proposal to the AGM to have the Sacco vehicles ownership sold to membership in form of shares in order to separate them from normal Sacco operations.
To ensure members’ next of kin do not suffer as a result of loan left behind by their deceased relatives, the chairman announced that all loans given to members from July last year were insured.
He announced that over 80 per cent of the active members have been loaned by the Sacco from January 2015 to date. The loan products include normal, emergency and asset finance loans.
“Sacco exists so that the funds saved collectively are then used to loan the members thus investing the proceeds in profitable areas. Loan being our main product,” stated Kamau.
However, like many other Saccos, Nakonn too faces cases of default and the chairman said in an effort to recover the loans, the Sacco was contemplating engaging the Credit Reference Bureau, an organization licenced to collect, store and collate credit information on individuals and companies from different sources and provide the information in form of a credit report upon the request of a lender.
The other option, according to the Sacco, is to follow the defaulters and ensure the loan is recovered.
“Loans that were inherited have continued being defaulted. Up to an amount between Sh1.45 million and Sh1.5 million is non-performing,” he noted.
He said rules, systems and procedures to acquire and repay loans would be strictly followed and that the Sacco revised its loans payment method to bank standing order as this was effective and convenient compared with the traditional method used in the past.