Busia county assembly Sacco has disbursed over Sh34 million in loans to members to economically empower them.
The Sacco presently boasts of 226 members, envisions growing its financial base and subsequently invest in land, real estate and shares in some of Kenya’s reputable companies, including Safaricom, CIC Kenya Ltd and Co-operative Bank.
Documents seen by the Star show that between March 17, 2018, and March 31, 2021, the Sacco had given out loans amounting to Sh34,953,840 to members.
Already, Sh28,505,173 of the money loaned out within the three years has been recovered. The documents show that members successfully applied for loans and received Sh6,407,982 in 2018 of the same before the figure shot up to Sh8,008,713 in 2019.
Loan applications hit a high last year when members took Sh12,351,625 credit from the Sacco before credit applications slumped to Sh8,185,520 for January, February and March 2021.
The Sacco said it expects that more members will apply for credit and push the number of loans disbursed in 2021 over and above the Sh12 million given out last year.
Although it is grappling with issues of financial mismanagement that rocked it between 2013 and 2017, the new management expressed optimism that the institution will stamp its authority and grow further as it struggles to recover money claimed to have been misappropriated by the previous managers.
Sacco chairman Gabriel Erambo on March 30 told an annual general meeting that the new management would closely work with members and other interested investors as part of its growth plans.
“To the members who have joined, we promise to work hard for them. Your money will be safely kept. We expect professionalism while handling Sacco matters.
“We promise to acquire assets as we grow together in this journey,” Erambo said.
The current managers took over the office in March 2018. By then, 142 members had withdrawn from the Sacco due to financial mismanagement.
The money he said had been misappropriated between 2013 and 2017 and is projected to be recovered is Sh16,617,156.
Sacco treasurer James Lwanyonyi said the current management will strive to guarantee the safety of members’ shares and other contributions.
“We have currently put in place internal control procedures to check on the utilisation of our monies contributed by members to the benefit of the Sacco hence prudent financial management.
“We have likewise improved on our service delivery mechanisms to ensure that members get value for their money. We do not doubt that together we will achieve our goals,” Lwanyonyi said
Edited by Kiilu Damaris
