PS Mangeni Urges Saccos to Avoid Overburdening Members with Unsustainable Loans
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Monday, September 9, 2024
Nairobi, Kenya – The Principal Secretary in the State Department of Micro and Small Enterprise (MSE) Development, Hon. Susan Mangeni, has issued a strong caution to Savings and Credit Cooperative Societies (Saccos) against overburdening their members with loans that may be difficult to repay. Speaking at the NCBA Cybersecurity Forum on Monday morning, where she represented Hon. Cabinet Secretary Wycliffe Ambetsa Oparanya, PS Mangeni emphasized the vital role that Saccos play in Kenya’s financial empowerment landscape but warned that they should not become a source of financial distress for their members.
“While Saccos are instrumental in providing financial empowerment to many Kenyans, it is crucial that they exercise caution and responsibility when issuing loans,” PS Mangeni stated. “Members should not find themselves in situations where they are overwhelmed by debt with little understanding of how or when they will repay these loans.”
The PS’s remarks come at a time when concerns are rising over the growing debt burden on Kenyans, particularly those relying on Saccos for financial support. She stressed that Saccos must ensure their lending practices are sustainable and do not negatively impact the financial well-being of their members.
During her address, PS Mangeni also highlighted the significant impact of the Hustler Fund on the Kenyan economy. She described the fund as a critical intervention aimed at addressing market failures and expanding access to credit for Kenyans, particularly those at the bottom of the economic pyramid.
“The Hustler Fund is designed to correct market imbalances and provide credit to those who need it most. It not only offers financial support but also helps Kenyans build their creditworthiness, enhancing their ability to access further credit and engage more meaningfully in the economy,” she explained.
The Hustler Fund has been a key initiative under the current administration, aimed at empowering low-income earners and small-scale entrepreneurs by providing them with affordable and accessible credit. PS Mangeni’s comments reinforce the government’s commitment to ensuring that such financial interventions serve to uplift Kenyans without placing them in financial jeopardy.
The NCBA Cybersecurity Forum, where PS Mangeni delivered her remarks, focused on addressing the emerging challenges in the financial sector, including the growing importance of secure digital financial services. The event brought together key stakeholders from the financial and technology sectors to discuss ways to enhance cybersecurity and protect the integrity of Kenya’s financial system.
As the government continues to roll out programs like the Hustler Fund, PS Mangeni’s message to Saccos serves as a reminder of the importance of responsible lending practices that prioritize the long-term financial health of their members.
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