By Robert Nyagah
Stakeholders from transport Saccos in Embu County have petitioned financial institutions, especially banks, to review their lending structures to make them friendlier to borrowers and guarantors.
Former Manyatta MP Mr. Emillio Kathuri, a founder member of Neno Sacco and the chairman of the Sacco’s Welfare Committee, noted that many loan beneficiaries and guarantors have lost investments they used as loan collaterals because most banks are too strict and unfriendly to struggling investors.
“Most struggling Saccos liaise with banks for loans and end up defaulting on the same because of how strict the borrowing terms are,” he said.
Kathuri added that banks can hugely aid more development and expansion of commerce across the board, especially in the flourishing transport industry, by offering Saccos better banking opportunities because friendly loans reach many small scale entrepreneurs.
On the contrary, Neno Sacco Chairman Peter Manga defended Family Bank Embu Branch for offering the Sacco some of the friendliest and most flexible loan services.
In a rare confession, Mr. Manga revealed that when Neno Sacco launched its Imani Coaches long haul passenger and parcels services, the board visited nearly all the leading Banks who blatantly refused to work with them, with the exception of Family Bank.
“We have worked with Family Bank for many years and we highly appreciate that their terms of lending are friendly. The bank management allows consultations and that has helped us to succeed in making Neno Sacco one of the best transport entities in the country” said Manga.
Family Bank Embu Branch Manager Mr David Gitonga described the financial institution as the home of Saccos.
“Family Bank is the best bank. It is the home of Saccos,” he said.
He appreciated the professional way the Bank’s Board of Directors managed Neno Sacco, adding that he was proud the bank was being appreciated by one of the best performing Saccos in the country.
“We’ll continue to work with the Sacco. We have launched a Digital Integration System for the Sacco to ease members’ transactions. Once all is integrated, validation of transactions will be smooth and transparent,” Mr. Gitonga said.
He said the Bank is always friendly to small scale borrowers who are the pillars of the economy.
“We are not only keen on offering services but also the best customer experience.” He said.
