Murang’a Governor Mwangi Wa Iria has advised savings and credit co-operatives (saccos) across the country to put more emphasis on investments rather than just offering credit services to their clients.
This, he said, will ensure that the saccos do not collapse as has been witnessed with some in the past.
The governor associated the move by most saccos to venture into lending and borrowing as the main cause their failure, especially when members fail to repay their loans.
Speaking Tuesday in Kenol town when members of Talented Musicians and Composers (Tamco) Sacco, which belongs to musicians from Mt Kenya, toured a piece of land they recently bought, Mr Wa Iria said the collapse of saccos negatively affects law-abiding members whose hard-earned savings are lost, exposing them to untold sufferings.
“The only way we can salvage saccos from collapsing is for the members to consider investing and putting up facilities which could be bringing money to them instead of lending money to the members who end up failing to repay the loans,” the governor said.
Referring to his brainchild outfit, Murang’a Women Sacco, which built a Sh100 million hostels block near Murang’a University of Technology, Mr Wa Iria said the women are now getting Sh1 million rent monthly.
He added that the sacco has also purchased a 32-seater bus which they hire out.
“These are income-generating projects which saccos across the country should focus on instead of lending money, which creates mistrust and enmity upon the collapse of the societies,” he said.
He lauded the management of Tamco Sacco for coming together and shelving their differences and purchasing the land which he noted will bring benefits to the musicians, some of whom have been dying as paupers despite their popularity.
Speaking at the same event, the group’s chairman John Ng’ang’a Mwangi, popularly known as John De Mathew, said they bought the land at Sh8 million and they plan to build a recording studio on it, commercial shops and conference rooms. Members will be benefitting from the proceeds.
“We have been mocked and laughed at but we are determined to join hands and grow together so that never again shall we be doing fundraisers for hospital bills and burials of musicians,” he said.
In January, the artists launched the sacco and received over Sh2 million boost from leaders, among them Mr Wa Iria, Nominated MP Maina Kamanda and President Uhuru Kenyatta.