New rules under the Sacco Society (Amendment) Bill, 2018 will now require Saccos to share credit information on loan defaulters to root out reckless borrowing. On Wednesday, Members of the 12th parliament were all in agreement that saccos needed to put out information on members’ performing and non-performing loans. The credit information once shared with Credit Reference Bureaus can be available to other licensed financial institutions as a guiding tool on how to assess different borrowers based on their credit score. MPs, however, believe the Sacco industry woes are a result of poor lending practices forcing Saccos into bankruptcy. With growing concerns over mismanagement, fraud and bad loans in the Sacco industry, the government is also planning to shut down 2,200 Saccos countrywide.

Source: The Star October 12, 2019 00:56 UTC