Co-operative restructures Sh500m worth of loans
National Cooperative Housing Union (NACHU) has restructured more than Sh500 million loans advanced to individual members and housing co-operatives as Coronavirus (Covid-19) continues to hammer the economy .
Chairman Francis Kamande said the entire co-operative movement is grappling with reduced remittances as the pandemic continues to hammer the economy.
“The entire co-operative movement has been heavily affected by the pandemic and thus received reduced remittances from members while management of the institution has extended the repayment period of the existing loans,” he said.
Kamande who is also the National chairman of the Co-operative Coronavirus Response Committee (CCRC), said majority of co-operative societies mainly Saccos are grappling with declining financial situation as the economy continues to be impacted by the corona virus.
For example, at Nachu, he added, out of total loans it has advanced to individual members and housing societies, it has restructured more than Sh500 million.
“We have had discussions with our members and agreed to reschedule the loans. Equally, we have had discussions with our partners both local and international with a view to rescheduling our loans as we wait for the Covid-19 to ease,” added Kamande.
He made the remarks at his Upperhill office after handing over 500 vouchers worth Sh500,000 to 60 small Saccos operating in low income areas.
Mama mboga
Nachu management has in the past financed boda boda, mama bogas, and owners of small hotels to construct their homes.
The impact of the pandemic in the housing sector, he said, has put brakes to numerous housing projects being undertaken by depositors.
CCRC, he said has so far handed over vouchers worth Sh5.5 million to over 5,500 vulnerable households with 4,500 identified from cooperative societies whose members have lost their incomes within Nairobi and 1000 identified from the larger community.
