Mwingi traders sacco has deregistered members for "not adding value". Chairman Julius Mutukaa said some 126 of the 325 members were deregistered. He was speaking at the sacco's AGM at a Mwingi hotel on Monday.
Members unanimously voted to lay off the dormant members. The affected members had only paid Sh200 registration fees but did not buy shares. The AGM resolved that 99 other members whose share capital was below Sh5,000 be notified.
It was agreed that bonafide members must at least have shares worth Sh5,000. Mutukaa said the society should rid itself of was full of joyriders who did not meet their full obligation to the Society.
He thus urged the AGM to decide the fate of the collective 225 inactive members since they did not add any value. “This means 225 members cannot participate in the democratic process of the Sacco affairs and cannot guarantee any member for Sacco loans,” said the Chairman.
The Sacco treasurer Joseph Maimbu noted that the management Committee was empathetic with the young and struggling Sacco’s fiscal base and thus forfeited their allowances in favour of pro-bono services.
“We offer free services to the Sacco because we want it grow. Once it financially stabilises then we will start drawing allowances at that point,” he said. The assistant county Cooperative officer in-charge of Mwingi region Joseph Mutemi called on members to seek loans from the Sacco to help it grow its revenue base.
“You will only help the Sacco get income if you take loans which you pay with interests. Interests on loans are the earnings to the Sacco,” he said. He also lashed out at members who default on loans saying they were a bad omen as they intended to kill the Sacco.
He lauded the Sacco management for acting firmly and engaging an auctioneer to recover the Sacco’s Sh 1 million owed to loan defaulting members.