By Ken Langat.
Saccos have been advised to concentrate on their core business of savings and lending members and not engage in costly long term investments.
Kipchumba Bullut, James Finlay Kenya Limited General Manager, observed that some societies were rushing to engage in costly ventures as a possible conduit for theft of members’ funds.
“It is deplorable to see Saccos collapsing or not growing while their members wallow in poverty. This is after their properties are attached or auctioned as the Sacco sinks all liquidity available to expensive multi-million shillings projects,” said Bullut.
Addressing Ndege Chai Sacco Limited members and officials during the Society’s Annual Delegates Meeting held at Chebululu Club, Kericho, Bullut told Saccos to stick to their core business of lending and collecting savings from members.
He challenged those entrusted with leadership positions in Saccos to uphold the laid down by-laws, be transparent and accountable to members and operate within the law while giving priority to needs of their members.
“Saccos should provide financial products and services to members and avoid investing in expensive long term products that eat into funds available to members,” said Bullut.
He said that consultation is needed before a Sacco undertakes any capital intensive project. Bullut, who is an accountant, said tendering and buying of building materials is a window that unscrupulous managers and directors use to steal from their Saccos.