Universal Traders Sacco cuts external debt, unveils Sh 50 million women's fund

Universal Traders Sacco has announced a major reduction in its external debt as part of efforts to strengthen its financial position and support members in the lower Eastern region.

During the SACCO’s 7th Special Delegates Meeting in Machakos, Chairperson Julius Mwengei announced that the institution had reduced its loan balance with Co-operative Bank from Sh164 million in August 2024 to Sh3 million, with full repayment expected by the end of October 2025.

Mwengei said the move will ease pressure on the sacco’s finances and allow more funds to be directed toward member services. He added that the sacco is also seeking to cut operational costs and expand access to credit, particularly for women entrepreneurs.

The chairman announced a remarkable financial achievement where the organisation reduced its external loan balance with the Co-operative Bank from sh 164 million in August 2024 to a mere sh 3 million to date. He told delegates that full settlement was anticipated by the end of October 2025. “This debt restructuring immediately frees up substantial liquidity to be channeled back into core member services,” he added.

Addressing members’ queries regarding the cost of obtaining loans, Mwengei announced the Sacco management had designed a competitive borrowing model for loan interest rates, which he noted were being adjusted downwards to encourage borrowing by making it more affordable.

He pointed out that Fixed and Call Deposit Rates were being increased to incentivise member savings and boost personal wealth accumulation.

And in an ambitious move to bridge gender parity in wealth creation, the sacco has earmarked shs50  million fund exclusively to support women-led businesses. The fund, he said, will feature tailored lending terms and crucial capacity-building programs, focusing on financial inclusion for female members.

He noted that the pending action for the business calls for innovation across four key areas, including establishing digital fortresses to tame cyber-attacks through ICT system upgrades, staff training and cyber insurance.

“The sacco is also actively exploring AI-driven tools for enhanced customer service to streamline loan appraisals, improve risk analysis, while at the same time committing to ethical deployment,” he said.

According to the chairman, the sacco is in the process of embedding Environmental, Social, and Governance (ESG) principles into its lending policies, with 'green loan' products currently under review to promote sustainable development.

He revealed that a Data Protection Officer had been appointed, and regular system upgrades were now ensuring compliance with Kenya’s Data Protection Act. "This is more than a plan. It is a member-first transformation. Together, we are building a SACCO that is faster, smarter, and fairer," Mwengei said.

At the same time, UTS chief executive officer, Dominic Mutunga, said the organisation was pursuing a raft of strategies aimed at growing revenues alongside total assets. “We are in the process of launching premium savings and loan products and rolling out agency banking services as well as internet banking to enhance service delivery,” he said.

He went on, “We are also implementing an automated credit scoring system alongside a campaign targeting youth and women to instil a savings culture.”