In accordance with its strategic plan, the SACCO aims to register for deposittaking activities, particularly through the establishment of a Front Office Services Activities (FOSA) unit. This initiative seeks to simplify salary processing, offer loans based on salaries, and enhance loan recovery rates. By implementing a FOSA unit, the aim is to streamline the processing of members’ salaries, offering a convenient avenue
for members to manage their finances. The Chairperson, mentioned that this streamlined process will not only benefit members by providing easy access to their funds but also enable the SACCO to offer loans based on members’ salaries. This approach to lending allows for more tailored and accessible credit options, empowering members to meet their financial needs efficiently. Moreover, the establishment of the
FOSA unit is expected to significantly improve loan recovery rates. By integrating salary processing with loan management, the SACCO can better assess members’ repayment capabilities and tailor loan terms accordingly. This proactive approach to risk management enhances the
SACCO’s financial sustainability while ensuring responsible lending practices.