Sukari Sacco still struggling
03 May 2013, 17:26
Sukari Sacco which is one of the leading Savings and Credit Corporative Societies in Western Kenya continues to struggle following competition from rival financial institutions.
Speaking during the Annual General Meeting of at Booker Academy in Mumias, the Society’s executive director Hudson Alubisia said en-mass migration of members had seen their fortunes dwindle significantly.
The Society had a pact with the World Council of Corporative Unions a partnership that saw Sukari receive KES 10 million from the Union to fund education of needy children in the society but a only Sh4million had been spent when the contract lapsed.
Alubisia argued that inflation had partly to blame for the problems many Sacco societies continue to face.
“Saccos must seek the nod of the members to review interest rates charged at any one time no matter what happens when inflation hits the societies.”
Instead of hiking interest rates for members, the Saccos opt to transfer a Lion’s share of the profit made to cover up for the losses caused by inflation and other factors according to Mr Alubisia hence reducing bonus awarded to the members.
He said the Society had embraced diversification and introduced several facilities to clients and also started reaching out for sugarcane growers and people working in private sector to enroll as members.
“The Corporatives Societies Act 2008 stipulates that sugarcane growers have to become members of the society instead of just earning money from a sugar miller through the Sacco in order to benefit a lot from other services we provide,” explained Mr Alubisia.
During the AGM some members argued that the Sacco seen a drop of close to 2,000 in membership that currently stands at about 30, 000. “Something has to be done urgently to address the issue,” demanded the members.
The Sacco chairman regretted that some members were being deducted money for loans they never received. “It should not be so and we shall take this issue seriously." He said.
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