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Sacco loan defaulters have nowhere to hide in era of credit bureaus
Central Bank governor Njuguna Ndung’u (left) with Credit Reference Bureau Africa CEO Wachira Ndege and vice chairman Stephen Mills in 2010. Credit referencing has made it difficult for defaulters to access fresh loans. PHOTO | FILE | NATION MEDIA GROUP
Sacco members who guarantee loans that end up as defaults are an angry lot, I realised two weeks ago. I met a group of enraged sacco members heading to a local credit reference bureau to report their defaulters, they told me.
Engaging them, I gathered they were unhappy repaying debts that benefited others who have chosen to ignore the principle of trust.