Windsor SACCO started as a small saving group in 1997. At its inception, the benefits for the members were few.
It now has over 2600 members, according to SACCO Vice Chairperson and founding chairperson Peter Othieno.
Background
Windsor SACCO started as a group of 25 members in 1997. It was registered by the Registrar of Cooperative Development of the Ministry of Trade, Industry and Cooperatives the following year with 30 members. Initially, 85 per cent of the members were Lake Victoria Hotel employees and non-staff members were ineligible. It was a project for junior hotel staff, the low-salary earners. They would pool their earnings and then borrow for development. The SACCO offices were on the hotel premises and strictly out of bounds for non-staffs. Hotel staff relatives living in the hotel staff quarters also picked interest, hence the decision to relocate it off the hotel premises to make possible their membership. A significant number of people from all walks of life then joined it. In 2002, institutions like St. Mary’s and Victoria Medical Center were now part of the
2600 members with a portfolio of Shs.1.9bn and liability and equity worth Shs3billion, and share capital of Shs583.7m. The SACCO governance comprises seven board members, three supervisory members and a workforce of 8 staff. The registrar’s office supervises the SACCO; he is supervised by the District Cooperative Commercial Officer who regularly audits the books of accounts. Othieno says the SACCO offers agency banking and mobile money services. They hold annual general meetings to report the activities to all members and organize general elections every four years per the new Act Cap 112 of Cooperative Societies.
Eligibility
For one to qualify for membership, Othieno states that they fill SACCO
entrance form, get a recommendation letter from the LC1 chairperson, and
one existing members as a recommender, and present two passport photos
and one passport photo from the next of kin. Other requirements are savings
of Shs 50, 000 for new members, Shs10, 000 entrance fee, annual shares of
Shs 40,000, Shs10,000 for welfare fund paid monthly and an annual
contribution of Shs 20, 000. To qualify for a loan, they must be a subscribing
member who saves monthly and must actively participate in all SACCO
programs. They fill in a loan form with the credit office and must possess an
LC1 Letter confirming residential status plus two guarantors who are members
of the SACCO. To get the money they must have saved 50% of the money
they request. A committee then assesses the status of the member borrower
and then approves or declines the request. One is notified to collect the
money or is notified of the decline with a reason.
Loans
The loans fetch low-interest rates; emergency loans of up to Shs 200,000
attract five per cent interest, payable in one month. A short-term loan for four
months of up to Shs 500, 000 attracts an interest of 15 per cent inclusive of
insurance. Loans of up to Shs1m with 20 per cent interest are payable in one
year; medium term from 1,000,000 to 5million at 17.5% percent payable in two
years and long-term loans of up to Shs30m with 17.5 per cent interest are
payable in three years with insurance per annum.
Achievements
Othieno says the SACCO serves all its members to their satisfaction. It has acquired its own home in Kitooro Central along Kiwafu Road. It has also bought two pieces of land, in Buwaya Village and Nsamizi Zone with some housing estates. It gives out Christmas hampers to its active members for the festive season. Upbeat, he says the SACCO always registers a surplus and never a deficit or loss.
Challenges
Some dishonest members default on repaying their loans, which affects the SACCO work while others provide incorrect information, making it difficult to assess them when giving out loans. Some members don’t update their data records in time leaving management in suspense on their membership status while others snub the training yet the SACCO invests much money in skilling and keeping them informed.
Government
The government should institute proper working laws and enforce maximum supervision to ensure the funds & safety. It should consider funding Windsor SACCO in its development programs and motivating the workers. The government should organize capacity-building training facilities for the SACCO and appeal for government support to facelift its offices.
SACCO members
Members need to trust Windsor SACCO and its leadership. The habitual defaulters must repay their loans to avoid the penalties. More savings qualify for bigger loans to help them pursue their development agenda. The members who avoid the annual general meetings or training will be fined Shs10,000. Always avoid hearsay; the right information is from the SACCO office.(By PEACOCK KAWEESA & SADIQUE BAMWITA)
