Mwalimu National Sacco reviews lending rates for customers.
Mwalimu National Sacco reviews lending rates for customers.

Mwalimu National Sacco has reviewed the loans’ lending rates for members. In the latest move, members’ loan borrowing ability will be limited.

Members of the Sacco have been enjoying increased borrowing ability following the Pay As You Earn, PAYE, tax relief of 5% at the onset of the Covid pandemic. The waiver was granted by President Uhuru Kenyatta to cushion citizens against the adverse effects of COVID- 19 and is to cease by 31st December 2020.

“We do, therefore, notify all our esteemed members on revision of our lending terms that the tax relief will not be used as part of borrowing ability for all our credit facilities effective 12th October, 2020. This policy change ensures that, members borrow within the two-third of the salary allowable deduction as required by the law and our organization’s By-laws.” Says Mwalimu National Sacco Chief Executive Officer, Alphonse Kaio via a circular dated October 9, 2020.

Kaio says the latest move will ‘also forestall the likelihood of Non-Performing loans that could pose a challenge to our financial performance.’

“The change on lending terms will be applicable on all loans and advance forms, received by the Society with effect from 12th October 2020.” He adds.

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