Stima DT Sacco Chief Executive Officer Dr. Gamaliel Hassan has highlighted the vital role Savings and Credit Cooperative Societies (SACCOs) play in shielding members from economic shocks amid rising living costs.
Speaking during an interview with Radio Generation on Thursday, July 9, Dr. Hassan said persistent inflation, both locally and globally, has significantly reduced people’s purchasing power. This economic strain has made it increasingly difficult for many members, especially business owners, to save and access affordable credit.
“We play a major role as shock absorbers for the industry,” Dr. Hassan said.
Dr. Hassan noted that Saccos have become an important financial lifeline for employees whose borrowing capacity has been limited by the one-third salary rule, or whose payslips have been heavily affected by recent additional statutory deductions.
“When a payslip is constrained by the one-third rule or other deductions, the next best place to turn to is a Sacco,” he explained, adding that cooperatives provide members with the financial support they need without exposing them to unsustainable debt.
While borrowing is often unavoidable in the current economic climate, Dr. Hassan emphasized that Saccos remain committed to ensuring members access affordable credit that does not evolve into a long-term financial burden.
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“A Sacco is able to offer that kind of cushion because no one can live comfortably without taking a small element of debt,” Dr. Hassan said. “At the same time, we do not want that debt to become a long-term problem for borrowers. Our role, therefore, is to provide very affordable financing to our members.”
His remarks come after Stima Sacco recently unveiled significant changes to its credit policy, including the introduction of new loan products such as Sharia-compliant financing and self-guaranteed loans.
The revised policy also expands financing opportunities across key sectors, including agriculture, trade, education, housing and investment, among other amendments.
By Frank Mugwe
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