This archive report was first published on 3 July 2020.
As the COVID-19 pandemic continues to affect the economy, a little-known Savings and Credit Cooperative Organization (SACCO) has been accused of exploiting its clients.
President Uhuru Kenyatta had issued a directive for financial institutions to restructure their loan terms for clients during the pandemic, but Mhasibu SACCO Society Limited took advantage of the situation to increase interest rates and impose additional charges on its customers.
Loan disbursement forms seen by Nyakundi Report revealed that the Professional-Accountants-only Sacco, Mhasibu, had reviewed their packages and increased the existing loans by 5% and adjusted the annual interest rate from 12% to 13%.
"The Sacco is taking advantage of their members as a disguise of supporting them during this corona period. The members are in uproar but the Sacco management has refused to listen to them," said a customer who was dissatisfied with the 5% increase on his loan.
In a statement, the Sacco claimed to be monitoring the situation and committed to serving its members, but the move has been met with criticism from its customers.
"This Mhasibu documents shows that there is no interest of the customer at heart, you can see all these tactics," the customer added.
On July 3, 2020, Nyakundi Report obtained loan disbursement forms that revealed the Sacco's actions.
