Kisumu Teachers Sacco Society (KITE) Chief Executive Officer Joseph Oganga has revealed that loan defaulters owe the Sacco Sh30 million and they are planning on ways to recover the money.
CEO Oganga said that they have failed to recover the funds from the defaulters adding that they are soon forwarding the names of the members who have defaulted to the credit reference bureau.
He said that once the name has appeared to the bureau it will then be circulated to all financial institutions and such a member will not be able to access any loan from any financial institution.
Oganga is now urging those who owe KITE money to repay in time before their names are forwarded to the bureau.
“The consequences are that those blacklisted will not access any loan in any facility. It is upon them to repay before we forward their names,” advised Oganga.
Speaking on Saturday at Lions High School in Kisumu during their AGM, Oganga asked teachers to take loan with KITE as one way of getting financial support besides their monthly salary.
He said Banks are charging too much interest on loans and that is over burdening teachers, reminding them that Saccos interest rate is relatively low.
“I know for a fact that our teachers are finding it hard to repay Bank loans, that’s why I urge them to take loan from KITE since interest rate comparatively lower than in other places,”said Oganga.
He called on teachers to join KITE Sacco to help in forming a strong financial base so that they can get cheap loans for their own development.