By Azael Masese.
Wanandege Sacco Society Limited, considered one of the oldest Saccos in Kenya, has embarked on an ambitious plan to improve efficiency and service delivery to members while increasing its revenues, value of assets and increasing the size of its loan portfolio.
With a harsh economic environment affecting the financial sector, Saccos included, Wanandege Sacco plans to tighten its grip on issuance of loans to members to ensure that defaulters are locked out of the system
“We have sought the services of a pool of debt collectors and auctioneers to help us recover loans extended to members,” said Boniface Muthama, Chief Executive Officer-Wanandege Sacco.
The Society plans to ensure that systems are put in place to ensure only deserving members qualify for loan facilities and that guarantors play an active role in the event that a member defaults on loan repayments.
“While we do not have bad borrowers, it is bad loans that have been issued in the past and this is why we need to improve issuance and loan recovery processes,” said Muthama in a recent interview with Sacco Review at his Embakasi office.
Wanandege Sacco also plans to cut down on its expenditure, which stood at Sh118 million at the close of the 2016 financial year compared to Sh150 million in 2014.
“We have a bloated governance structure and going forward, the Board of Directors will cut down on the number of meetings, only convening when there are critical issues to be discussed,” said Muthama.
The Society will also reduce its occupancy levels at the Wanandege Plaza from 18 per cent to 10 per cent, freeing up more offices to be rented out to other private firms or individuals.