Teachers urged to join Saccos and plan for retirement early

By Hilton Mwabili(Education News Kenya — https://educationnews.co.ke/news/teachers-urged-to-join-saccos-and-plan-for-retirement-early)

Kenya Teachers Sacco Association (KETSA) chairman Robert Njue Kithanju has advised those joining the teaching profession to invest in Saccos.

Speaking on the sidelines during this year’s KETSA annual delegates conference in Mombasa, Njue said Saccos cushion teachers from financial shocks.

‘Saccos help teachers to ensure sustained financial growth. Joining Saccos helps teachers to secure chances of borrowing loans for their own growth. Saving in Saccos also cushions teachers from emergency financial needs that arise,’ Njue said.

He went on to add that Saccos have greatly helped in shaping the financial discipline and general ethics of teachers who are Sacco members.

‘Teachers themselves keep each other on check since no one wants to see their colleague fail to offset a loan in which they acted as guarantors, ’Njue added.

He also cautioned teachers against living lavishly and forgetting about planning for their retirements.

He challenged trainee teachers to understand their goals well and maintain a dignified life and cautioned them against “over borrowing.”

“I have seen teachers own homes and establish investments through Saccos. This is a clear indication that Saccos help. I would like to advise teachers who are yet to invest in Saccos to do so because the best way to retire is to retire in investments,” the Ketsa chair noted.

Njue said that the expansion of the Sacco’s membership to include those outside the teaching profession led to an increase in the number of loan defaulters and portfolio at risk.

He revealed that to curb such cases, Saccos are in the process of deploying digital strategies as lessons learnt from the Covid-19 pandemic.

‘When we started as a teachers’ Sacco, recovery of loans was easier because teachers have a regular income and one employer. Expanding our membership base to include non-teachers increased our portfolio risk. During the Covid-19 pandemic, we struggled but now we have learnt to adopt digital technology as the future of doing things,” he explained.