Kwania SACCO struggling to recover over Shs 70mln from borrowers
KWANIA – Abany Community Development Savings and Credit Co-operative [ SACCO ] is struggling to recover about Shs 72.6 million loaned out to its members in the 2022/2023 financial year.
The SACCO located in Awei village, Abany parish, Abongomola Sub-county in Kwania district started in 2014 as a Village Savings and Loan Association [VSLA]. This SACCO currently has 176 members and a current loan portfolio of Shs 120mln.
From January 2, 2022 to August 25, 2023, the SACCO had disbursed a total of Shs 78, 876,750= to its clients, however only about Shs 6mln has been recovered, according to the midyear financial report compiled by Fredrick Ocen, the SACCO’s internal auditor.
Releasing the report at the SACCO’s offices on Sunday during the midyear financial report meeting, Ocen blamed the poor loan recovery to the weaknesses of the loan officers and lack of financial literacy.
“The SACCO members need more training on financial literacy. Most of you borrowed the money and took it to bars while some people borrowed money for marrying second wives even the loan officers who were responsible for assessing and collecting money were relaxed that is why the SACCO is limping, “he said.
He added that, “It’s not yet too late. I want to request you to diversify to other alternative enterprises in order for you to generate money and boost your savings. As you struggle hard to recover the loan, I want to request you to save money jealously to save this SACCO from the possible collapse.”
Alex Egwar, the SACCO general secretary says failure by defaulters to pay back the loan has put the SACCO on the verge of collapse as some members have equally stopped paying both savings and shares.
Harriet Angida, a member of Abany Community Development SACCO who hails from Aduku town council in Kwania district says that those who borrowed the money should be followed up with the law.
However, Walter Oder, the chairperson Abany Community SACCO said the SACCO leaders are doing what it takes to recover the loan. “We gave ultimatum to those who borrowed money from this SACCO including some of the SACCO members and some institutions who owe us huge sum of money. Some of them are on the run while some have deliberately refused to pay the loan but we shall implore all mechanisms to ensure the money is recovered,” he said.
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