Ntoroko cooperators urged to utilise their SACCOs effectively

NTOROKO – The Ntoroko district Chairperson William Kasoro has urged cooperators to utilise their savings and credit cooperative societies (SACCOs) effectively to buy more shares.

Kasoro said, most of the cooperative members are using their SACCOs only to get loans and in most cases, they default hence leading to their collapse.

He said, he believes in pulling resources as a group which also helps in improving on household income.

“Most members save some little money in SACCOs with an aim of getting loans but keep their huge sums of money in banks. They don’t keep their money with their SACCOs but they want the SACCOs to give them in form of loans” he noted.

Kasoro said, the power of every SACCO is in share capital, the more the shares the more the money.

“I appeal to you to have as many shares as you can and also save some more money so that it can also make more profits through borrowing” he said.

Kasoro further said, this while officiating the Karugutu Cooperative Savings and Credit Society Ltd [KASACCO] Annual General Meeting [AGM] held in Karugutu town.

The KASACCO board Chairperson Ernest Bwambale appealed to members to continue mobilizing for the SACCO so as to increase their membership, shares and savings.

“There has been a great improvement in all aspects in membership, savings, loans, shares and profitability which gives a great picture of sustainability but we still need to continue mobilizing more members” Bwambale noted.

He also said through intensive mobilization especially in areas of Bundibugyo, there has been an increase of membership by 696 members 2916 in 2020 to 3600 in 2021 and over 100 accounts were reactivated.

Bwambale said, their 2022 membership projection is at 4320 members

“This year’s share capital projection is at Shs 200m and savings is projected at Shs 1.2bn and we hope through proper mobilization, we shall achieve it” he added.

Challenges

Bwambale noted that clients have not been paying back in time which has become a habit even when the SACCO has done all it could.

During the AGM, it was also noted that some savings for members was not good because most of them open accounts with an aim of getting loans, such accounts remain dormant for some time.

KASACCO’s future plans is to reduce the interest rate from 3 percent to 2.5 percent once they finish construction of their premises.

KASACCO is constructing her office in order to have enough space to carry out her business.

AGM resolutions

KASACCO AGM resolved to increase the maximum amount of loan to individuals from Shs10m to Shs15m in a bid to increase profitability and sustainability and to groups from Shs15m to Shs20m.

Share capital was also increased from Shs10,000 to Shs20,000.

This year’s AGM was held under the theme, savings and shares mobilization, a strategy for sustainability.

https://thecooperator.news/masindi-teachers-sacco-grapples-with-40-account-dormancy/

Buy your copy of thecooperator magazine from one of our  country- wide vending points or an e-copy on emag.thecooperator.news

Views: 1