Regulator orders Saccos to blacklist defaulters, outing them from credit

Kuscco Ltd National Chairman Mark Magutu (left ) and Sacco Societies Regulatory Authority CEO Carilus Ademba, at the Sacco leaders forum sponsored by USAid in Nairobi, yesterday. [PHOTO: MOSES OMUSULA/STANDARD]

Nairobi; Kenya: Sacco loan defaulters have been put on notice after the sub-sector’s regulator, Sacco Societies Regulatory Authority (Sasra) said it has now given Saccos the greenlight to start blacklisting offenders and file their names with Credit Reference Bureaus (CRBs).

The defaulters will not only be banned from Saccos, but it will also make it difficult for them to access loans from other financial institutions including commercial banks, micro-finance institutions and Higher Education Loans Board. “We have to support the credit reference bureaus’ (CRB’s) initiative to ensure our loans are collected,” said Sasra Chief Executive Carilus Ademba.