Isn’t this script familiar? You and your colleague belong to Sacco X. Your colleague is in dire need of a loan, but he needs a few of his ‘friends’ to guarantee this loan for him. You as ‘a friend’ are approached to sign off the guarantor documents or form and you gladly do so.
A few monthly repayments later, your colleague is laid off and as a result, he defaults. You find yourself saddled with a new, debilitating liability, as you now must repay the residual loan on behalf of your colleague based on debt or loan recovery procedures provided for by the Sacco.
