Loan defaulters owe the Nandi Teachers Saving and Cooperative Society more than Sh250 million. The Sacco chairman Alfred Ngetuny yesterday said they have now given notice to the defaulters to pay up the money or face prosecution.
"There are members who failed to repay their loans but we will take action against those who do not heed the call to pay up," he said. Speaking to the Star in his Kapsabet town office, Ngetuny said among those who owe the society alot of money are officials of the Kenya National Union of Teachers in the county.
He said the huge loans have hampered the operations of the sacco, which has been facing financial problems. The society has now been licensed by the government to operate banking deposit services for teachers. Ngetuny said they are ready to offer the services efficiently and effectively to the more than 3,000 members.
"If the money is repaid, we will be able to improve our financial base and operations," he said. The society has already written to the members who defaulted asking them to repay the money as soon as possible. Ngetuny said the society was two days ago also licensed to offer front office services to members.
"We are happy with the decision by the government to give us the licence because teachers will now be able to run their financial issues effectively," he said. It is the second sacco to be licensed to offer such services in Nandi County after the Nandi Hekima Sacco, which deals with tea and dairy farmers.
The sacco will now be able to handle banking deposit and processing of salaries through the front office service for members. "The government's move to license us also shows that our records are good and teachers should have confidence in the sacco," Ngetuny said.