SACCOs (Savings and Credit Cooperatives) serve millions of Kenyans, offering accessible credit often backed by group guarantees. But when a member defaults, it affects the entire group and the SACCO’s liquidity.
Step 1: Early Communication
Contact the borrower within 7–14 days of default. Many defaults stem from temporary hardship—not refusal to pay.
Step 2: Review the Agreement
Check the loan terms, collateral, and guarantor clauses. Most SACCOs have internal recovery policies aligned with SASRA guidelines.
Step 3: Engage a Recovery Partner
Firms like Leap Options Services Limited offer ethical, structured recovery that preserves member relationships while protecting your portfolio.
Legal Recourse
If amicable resolution fails, you may escalate to the Small Claims Court or pursue civil action—always with proper documentation.
Need help managing your SACCO’s delinquent portfolio? Contact us for a free consultation.