What should be done to improve the guarantor system in Saccos

Senior Stima Sacco managers led by Chief Executive Gamaliel Hassan during the launch of Sacco's mortgage products in Nairobi. [File, Standard]

Isn’t this script familiar? You and your colleague belong to Sacco X, your colleague is in dire need of a loan, but the catch is he needs a few of his ‘friends’ to guarantee this loan for him. You as ‘a friend’ are approached to sign off the guarantor documents or form and you gladly do so. A few monthly repayments later, your colleague is laid off and as a result he defaults and you find yourself saddled with a new, debilitating liability, as you now must repay the residual loan on behalf of your colleague based on debt/loan recovery procedures provided for in the Sacco.