Sot Tea Growers Sacco has reportedly plunged into further financial woes following delays by the National Government to implement a sh 500 million bailout pledge.
Consequently, the Sacco has reported mass withdrawal of membership in recent months, forcing it retrench more than half of it's staff.
"We have been forced to reduce the staff capacity because of the situation at our society. Those we have asked to leave will come back when things returns to normalcy," a board members who sought anonymity said.
The Sacco management however expressed optimism with the bailout plan announced by the president Uhuru Kenyatta will get the Sacco back to its feet once honored.
"Once we secure the sh 500 million we can assure our members that everything will be back to normal. There is no need to panic since the plan was on course,"said Stegeo vice Chairman Samuel Towett.
Source said some members have come out to claim they are in the dark despite the pay season drawing closer.
"There is no certainly that we will get our money. The bailout is not even clear and so we do not want to lose our money to the Sacco this year,"said Juliana Rono.
For three consecutive years, members of the Sacco have missed the annual pay to a loan taken to build a private tea Factory at Merigi area of Bomet East.
The Sacco owes members nearly sh 100 million that was deducted in the last three payment season.
Mr Towett however allayed fears saying the bailout will be in place and all members will get their dues."Everything has been taken care of and our members should ignore the rumors that their money will be deducted," assured Towett.
The Sacco membership has been shrinking following the cash Crisis at the society.
The management has put the current membership at less than 5,000 from the original 17,000.
" It is normal that during crisis some would choose to leave but we will get back on track and our doors will be open for them to come back," he said.
Towett revealed that through the bailout, the Sacco will be able to foot all the dues for it's members and service the factory loan and will remain with more money to jump start the factory which is already complete.
" We are looking for better days a head and the tea Factory which has failed to take off due to the crisis will ba able to operate and generate more funds to run the society," he said.
No comments:
Post a Comment