Saccos urged to enlist with CRB services to curb loan defaults

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]

Savings and credit cooperative societies have been urged to enlist with credit reference bureaus (CRBs) to help curb loan defaults.

Moses Kelwa, Business Development Manager at Metropol CRB, said societies which are not listed with CRBs risk losing money should members fail to repay their loans. 

He said individual members also benefit as they are able to tell, upon inquiries with the CRBs, credit worthiness of their peers before guaranteeing them loans.

Mr Kelwa said this during an education day for Wi-United Sacco at Kabete, Kiambu County.

Wi-United Sacco Chairman Allan Kimani said cases of loan default had gone down since the society enlisted the services of Metropol.

Facilitators of the forum included Kabete Sub-county Cooperative officer Lucy Wairimu and Metropol Client Relationship Officer Hellen Karuri.