Members of Boresha Sacco who owe the society Sh439 million in outstanding loans have been warned to pay up to avoid auctioneers descending on their properties.
Speaking on Saturday during an education meeting held at Moi primary school Kabartonjo grounds in Baringo North, the Sacco Chairman Albert Chebiegon regretted that many members have taken too long to clear their loans forcing the management to enlist the services of auctioneers to assist in recovering funds to save the society from collapsing.
Chebiegon stated that the decision was informed by the fact that most of loanees were unable to remit the loans within the stipulated time prompting the society to create a department of loans recoveries as a way of safeguarding the loans portfolio which has grown from Sh5.9 billion in 2019 to Sh6.5billion in 2020.
He added that the Sacco has also employed an officer who will be in charge of loan recoveries and will work together with the team of auctioneers to track down defaulters at the grassroots.
“These loans are very crucial to us because it determines efficiency in delivery of service to all our 114,849 membership thus further delays to pay the loans may as well crumble the giant Sacco,” he explained.
The chairman said he has instructed the new head of recoveries to work round the clock and ensure that the loans have been recovered by 2022 at the risk of also facing the chopping board.
Mr Chebiegon stated that the team of auctioneers will track the defaulters up to their homesteads where they have been instructed to seize household furniture, equipment, vehicles and livestock including hens, cows, goats among other properties.
Kabartonjo Branch Boresha Manager Mercy Ruto in a rejoinder encouraged members to service the loans on time to enable other members borrow to improve their socio-economic wellbeing.
She blamed the huge unpaid loans to among other factors to the outbreak of the Covid -19 pandemic which reduced members’ disposable income thus forcing some of them to borrow more than what they can pay.
Ms Ruto also revealed that the members did not pump the loans into income generating investments but instead spent on non-profiting socio economic activities.
She warned that if the trend is entertained, dividends will not be realized and the Sacco will not achieve the much needed growth.
Kenya National Union of Teachers (KNUT) Baringo branch women representative Esther Cheptumo said that there is need to step up education days for members to understand how their Sacco operates and opportunities they can derive in order to improve their livelihoods.
Cheptumo stated that there are some scenarios where organizations have had their licenses revoked by the regulator due to low uptake of shares despite having huge membership instead of adequate institutional capital.
- Source KNA