Minister Kasolo warns Emyooga saccos against inflating interest rates while lending to members

The minister of State for Microfinance Haruna Kyeyune Kasolo has warned Emyooga saccos against inflating the interests while lending to members.

" I have heard that your interest rates are now at 12 percent per annum but this is theft. You should know the intentions of the program,”Kasolo said.

" I am giving an order this should stop now. The cabinet passed a resolution that it should be at 8 percent per annum and that's it."

The minister was on Thursday speaking to Emyooga sacco leader in Ibanda North as part of his monitoring program.

Kasolo said he is not impressed with the decision by some saccos to increase the interest rates beyond eight percent per annum.

He also expressed concern over the poor performance of the program in Ibanda North constituency compared to other areas in the country.

" I thought Buganda had not done well but now I have to rethink that position. There's always time to wake up and it's not too late."

" What should I do? We have given you the same amounts like other parts of the country but you are lagging behind,” he wondered as he spoke to some of the beneficiaries.

However, in unison, the beneficiaries said they need more seed capital but the minister downplayed it as a bad decision.

" Should I reward those who have done well or I should reward those who have performed badly?"

He explained to the beneficiaries that the best performing saccos will get an additional shs20 million in seed capital and urged saccos in Ibanda to improve in performance so as to benefit from the additional seed capital.

" The money is already here and soon the technocrats will determine the best performing Saccos,” he said.

He recommended for more trainings to saccos members in Ibanda North as a way of ensuring they move at par with other parts of the country.

" We can't give you motorcycles(for transport for technocrats) if you aren't doing well .What you need is to be trained more intensely."

The Emyooga deputy national coordinator, Abdu Bisaso insisted that it is not fair for saccos to lend to members at a higher interest rate that he said would demoralize many to join the program.

He warned members against claims that the higher interest rates had been passed through the annual general meetings is not right .

" By charging a higher interest rate, you are like commercial banks yet the idea behind Emyooga  is  for people to get loans easily but you are now making it difficult,”Bisaso said.

Ibanda North MP,Xavier Kyooma reminded his constituents to treasure the Emyooga program as one meant to benefit them .

He reminded the beneficiaries to always pay back the loans they get from Emyooga saccos.

" You borrow. You pay back and others also get chance to borrow. If you don't payback you will be in trouble with authorities,” he said.