The Kenya National Union of Teachers chairman in Western Patrick Chungani has urged teachers’ saccos to lower their interest rates. He said they should follow suit after President Uhuru Kenyatta signed into a law a bill capping bank interest rates at 14.5 per cent.
Commercial banks have already adjusted their rates. Speaking in Kakamega town yesterday, Chungani said some teachers’ saccos lend at exorbitant rates.
“Our saccos must adjust the rates or we, as a union, mobilise members to vote out the managers,” he said. Chungani said the high rates have made it hard for teachers to repay the loans they borrowed. “Teachers are suffering because some saccos’ rates are higher than those of banks,” he said.
