This archive report was first published on 30 June 2021.
By Benedict Ng'etich
Adhering to savings audit ratios is crucial for the success of Saving and Credit Societies in Bomet County, according to the county's government auditor.
Speaking during the Sotico Sacco Annual Delegates Conference in Arroket Estate, Sotik, on an unspecified date this year, Bomet County Government auditor K. Kemboi emphasized the importance of recommended key audit ratios, particularly those related to member's savings.
“Some key audit ratios like the retained reserves are geared to safeguarding the interest of members when the Sacco encounters financial challenges like in the case of retrenchment or need for emergency funding,” he said.
Flanked by the Sub County Co-operative Officer Wesley Cheruiyot, the officials called for adherence to set credit policies, which helps Saccos avoid serial defaulters.
Cheruiyot commended Sotico Sacco for practicing prudent fiscal management and encouraged them to adapt to emerging innovative ways of transacting business, including mobile banking, which has already been established.
Notably, Sotico Sacco member's deposits increased by 16 per cent from Sh133,248,671 in 2019 to Sh151,491,288 in 2020.
The Sacco chairman, Samuel Munyao Nzeki, attributed the trend to the members' continued saving for the future and revealed that members from Sotik Tea Company continued to have the highest deposits.
During the year 2020, the society issued a total of Sh186,634,570 in terms of loans compared to Sh141,454,242 issued in the previous year, representing an increase of 32%.
The chairman cautioned that the society faced challenges of member's defaulting on loan repayment but tried to assist members with huge unbearable loans by amalgamating them.
He also urged members to save unwithdrawable deposits, which is a key multiplier for loans, and called for strict adherence to credit policy to avoid high dependency on loans as the only source of finance.
“An interest of Sh500 for every Sh1,000 over a period of 1 or 2 weeks is a burden that no one should place on another person,” said Munyao.
The Chief Executive Officer Everline Moraa Nyokwoyo thanked the board, delegates, and members for being supportive of the operations of the society.
She said they were doing everything possible to satisfy the needs of the members despite the current challenging economic situation.
