Farmers in Kabale District under Nyabyumba Farmers Saving and Credit Cooperative Organizations (SACCOs) have decried the continuous losses attributed to inconsistent loan repayment by the members.
The farmers expressed concern during the 19th Annual General Meeting held on Sunday at the headquarters in Kamuganguzi Sub-County, Kabale district. They have attributed the current crisis to changes in seasons that have affected agricultural harvests.
Ambrose Akankwasa, the SACCO General Manager, said loan defaulting has become rampant across many financial institutions due to the habit of multiple borrowing and climatic changes.
“In a situation where people acquire loans from different institutions, sometimes they find it hard to pay them back,” Akankwasa said.
He added that challenges such as climate change have equally affected households incomes and gradually reduced their capacity to pay the loan that is given.
He revealed that most farmers get loans to boost their farming activities but often hit by either low or too much rainfall hence affecting the production.
The LCIII Chairperson for Kitumba Sub-County, David Mujeresa, said that natural calamities have hindered farmers since seasons are hard to predict, giving an example of when he planted beans and expected 10 bags but was hit by heavy downpours.
“Farmers have failed to return the money borrowed from the Saccos because of the effect of heavy rainfall, which comes at unexpected hours and times,” the chairperson said.
However, Mujeresa further added that some of the members intentionally default due to the leniency of the leaders, which affects their operation.
Leaders and members of the group were further advised to be financially disciplined and desist from defaulting and misuse of funds whenever they borrowed money.
The SACCO started in 2004 and was registered in 2006 as a farmer initiative with 60 members. Now it has 2514 members with branches all over the district of Kigezi.