Teachers To Be Refunded Shares As SACCO Experience Liquidation
A significant portion of teachers employed by the Teachers Service Commission are members of various Savings and Credit Cooperatives (Saccos), which play a crucial role in helping them save money and access loans.
Unfortunately, due to mismanagement issues, some of these Saccos have faced financial difficulties, resulting in the loss of teachers’ savings. However, there are other Saccos that take proactive measures to protect teachers’ modest savings during challenging times.
One such case is the Kisumu Teachers Sacco, which was established in 1975 and has been serving members of the Kenya National Union of Teachers (KNUT) in the Kisumu branch. This Sacco, after failing to repay loans owed to the Cooperative Bank, opted for self-liquidation six years ago and is now urging its members to apply for refunds of their invested shares.
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The CEO of the Sacco, David Obuon, has revealed that the outstanding loans owed to the Cooperative Bank amount to more than Ksh 45 million. In an effort to recover these debts, the bank initiated deductions from teachers’ salaries through the check-off system, causing some teachers to receive as little as Ksh 2000.
This development is occurring at a time when another prominent Sacco, Mwalimu National, had to reverse its earlier investment decision due to substantial losses. The Sacco was forced to sell Spire Bank, which had become a financial burden since its acquisition in 2015 from the late business mogul Naushad Merali.
Teachers To Be Refunded Shares As SACCO Experience Liquidation
