By Anderson Ojwang
For decades, the fear of loans in Nyanza has undermined the region’s economic growth and investment in business opportunities. Residents have often likened securing bank or Sacco loans to inviting auctioneers to their homes.
While other communities have taken risks and secured bank and Sacco loans to boost their businesses, Nyanza residents have for eons given a wide berth to these services. This partly explains why most businesses in the region have been dominated by people from other regions, while locals have largely remained consumers.
However, the practice is fast changing, with residents now opting for bank and Sacco loans to boost their businesses. This shift explains the increasing number of businesses owned by local residents.
In Siaya County, Chaoba Sacco has been at the forefront of rewriting the community’s business narrative. In the seven years since its inception, it has many success stories to tell and document.
Currently, Chaoba Sacco has over 3,200 members drawn from all sub-counties of Siaya—Gem, Bondo, Ugunja, Ugenya, and Rarieda. The membership is drawn from different segments of the economy.
For Dorine Adhiambo, a businesswoman based at Uhuru Bar, Agulu Trading Centre in Gem, joining the Sacco in 2021 was a turning point after a friend introduced her to the organisation.
“I wanted to expand my business and urgently respond to constant challenges such as low cash flow and unreliable transport services,” she says.
Dorine secured a motorbike loan from Chaoba Sacco, which she repaid within a year. This helped improve her business by providing reliable transport.
That was just the beginning of her success story. She later secured Sh100,000 to boost her business and within a short span graduated her loan uptake to Sh150,000, then Sh200,000, and now Sh500,000.
“Chaoba Sacco currently gives a maximum loan of Sh500,000, and that is where I am now. When I look back nine years before I joined Chaoba Sacco, it is incomparable. The journey has been worth it,” she said.
She noted that financial discipline and stringent planning are key to successful loan repayment and business growth.
“On the first day of every month, I repay my loan. Every single day, I save a certain amount towards loan repayment, which makes it easier. I have followed the training and rules given by the Sacco management, and I can’t complain,” she said.
Dorine has become one of the leading influential educators in the region and has introduced many of her business friends to Chaoba Sacco, who have benefited from business loans.
For Patrick Abiero, his entry into business coincided with the formation of Chaoba Sacco in 2019. The two have grown together like Siamese twins.
“I decided to try my hand at business. I started small because I was cash-strapped. I feared seeking bank loans due to lack of security and tough conditions,” he said.
“But hope was not lost. I was introduced to Chaoba as it was starting operations. I became one of the first members and have no regrets,” he added.
Abiero expanded his business and ventured into commercial farming, which transformed his fortunes.
“I have purchased several parcels of land, ventured into commercial farming, constructed a modern house, and own a vehicle. This is purely from my partnership with Chaoba Sacco. It has been a successful journey,” he said.
He explained that the Sacco’s interest rates are lower than those of banks. For instance, if one secures a Sh100,000 loan, they repay it with an interest of Sh20,000 per year.
For Carolyne Atieno Onyango from Sega, her story is fulfilling and inspiring. Through Sacco loans, she has educated her children while running her business successfully.
“I started with a small loan of Sh10,000 and graduated to Sh150,000. Currently, I have a loan of Sh100,000, which I am servicing. I have been able to educate my children through these loans,” she said.
Dr Dan Adino, the Chairman and Founder of Chaoba Sacco, said there was initially fear among residents over securing loans due to concerns about auctioneers.
“People feared that if they took loans and failed to repay, their homes and properties would be auctioned. Through training and capacity building, we changed this mindset, which explains the growth in membership,” he said.
Adino noted that the Sacco recently held its seventh Annual General Meeting and draws members from all sub-counties in Siaya County.
He said the Sacco’s main objective is to support the business community by providing access to loans that enable business growth and local ownership.
“We have not experienced any incident of auctioning members’ property. Members have been punctual in loan repayment. We issue loans based on business size and needs,” he explained.
He added that members are encouraged to take loans they can comfortably repay and gradually graduate as their businesses grow.
“We give loans as low as Sh10,000 and up to a maximum of Sh500,000, and this will increase with time. We hope to expand to other parts of Nyanza,” he said.
Dr Adino urged the community to embrace the Sacco movement as a vehicle for economic growth and prosperity, just as seen in regions such as Nandi, Kericho, and Murang’a.
