•The rates charged almost drove her crazy. She was about to give up in the matatu business, a trade passion she shares with her husband.
•For two years she was continuously under pressure, and scared what she will do if she lost the vehicle.
Image: SHOFCO
A few years ago, Mary Mugana- Mesh almost lost a 34-seater matatu she had bought through a bank loan.
The rates charged almost drove her crazy. She was about to give up in the matatu business, a trade passion she shares with her husband.
For two years she was continuously under pressure, and scared what she will do if she lost the vehicle.
"I almost lost the matatu because of paying under pressure coupled by the huge loan interest rates charged. However, now I have something to smile about," she said.
The loan amounted to Sh500, 000 and the bank was charging a 12 percent.
Six months ago she walked into a bank to cash a cheque of over Sh1 million to buy her second matatu.
Today, Mesh sleeps easy and continues with her professional career not worried of stressing phone calls from a bank, she revealed this during the Shining Hope For Communities fifth Annual General Meeting.
"Since I secured a loan, I don't even think I have a business out there that's bothering because the matatu is raising income that's repaying it," she said.
Mesh is a beneficiary of SHOFCO's Sacco because its loans are of low interest rates compared to other Saccos which she has invested in.
"One of the things I have been happy about from last year is getting a big loan which financed a big investment, and the fact that I walked into a bank to cash a cheque, without any trouble makes Shofco loans one of the best around the country," she noted.
Most of the investors with the community based organisation are happy that the Sacco is helping low income earners to be able to save more and get bigger loans that can help them invest in.
Julius Ingutia, a resident of Kibera is another beneficiary after accessing an almost interest free loan to buy a car.
"So far, as I stand the Sacco has been beneficial to me, has helped me take my children to school, and recently supported me to buy a car at 1 percent interest rate," Ingutia said highlighting that before that, it was not a bed roses having to seek for casual labour opportunities in industries at the Industrial Area, to be able to pay for rent and children's school fees.
Shofco CEO and sacco Chairman, Kennedy Odede noted that for an organisation that started from a humble background, having disbursed up to Sh300 million in loans is not a mean feat.
The Sacco has also procured assets of up to Sh150 million in the last seven years of existence.
"We have about 10, 000 members, most of them from the informal settlements, who go through a lot of hardships," he said emphasising that the idea of establishing the Sacco was purely on this background to help the communities who live in these areas.
So, Odede said since the people in the slums don't have collateral such as land to give as security, the Sacco gives them loans at almost free so that they can cushion themselves.
"Through this Sacco, each member trust each other and stand for them to take money. For us it's a way of giving them capital, and we have seen people buying cars, pay school fees, set up businesses, others upgrading from boda boda to buy vans," he added.
He also said that through M-shofco, a new online digital lending platform, the company will be able to get people off the hook on mobile money lending companies.
"We are fighting the mobile loaning that's so far not trustworthy," he said.