By KT Reporter
Teachers in Kumi District have asked the Walimu Cooperative Union to take action by buying off their multiple loans from other financial institutions to enable them to maximise the benefits of the cooperative fund.
Recently, the Cooperative Union announced its plan to distribute shs500 million to each district across the country as part of the second phase of the teachers’ savings and credit cooperative organisations (SACCOs) fund rollout.
It was highlighted that these funds are made possible through an initiative by President Museveni aimed at enhancing the welfare of teachers, which he describes as one of the government’s key strategies to address their financial challenges.
Caroline Atai Kiyai, the Cooperative Union General Manager, mentioned that each district cooperative will implement a management information system. This system will help verify, process, and ensure quality loans are accessible to its members.
With the introduction of a digital loan application system, teachers can now conveniently apply for loans using their smartphones or other designated devices at the district level. This system also helps identify teachers who already have loans with other banks, which is crucial for managing repayments.
During a sensitisation meeting and the launch of a teachers’ fund, attended by officials from the Cooperative Union and civil servants at Kumi District boma grounds, several teachers expressed that their existing multiple loans from financial institutions might hinder their ability to benefit from this new fund.
While teachers appreciate the lower interest rates offered by the union—12% for agricultural loans and 15% for personal loans—many who have outstanding loans with other banks might miss out on this opportunity.
David Okurut, a classroom teacher at Kobuin Seed SS, pointed out that many teachers with loans from various financial institutions are feeling restricted. Even after they successfully pay off their loans, they often find themselves denied access to new loans, being told instead to increase their existing debts.
“Even now, as we talk, many teachers at this launch have tried to check their eligibility, yet they’re still denied access to Walimu because of their obligations to the financial institutions,” Okurut remarked.
Immaculate Apolot, a teacher at Obule Primary School, suggested that if the cooperative union aims to support teachers burdened with multiple loans, they could consider buying off those existing loans. This would enable teachers to access loans through the Walimu Cooperative more freely.
//Cue in: “then when…Cue out: ……. Good of a teacher”John Robert Ecelat, Chairperson of the Kumi Progressive Teachers SACCO, addressed the need for banking institutions to support teachers more effectively.
He emphasised that while these institutions aren’t at fault, there is a pressing need for them to be incentivised to provide loans at lower interest rates through the union.
Ecelat encouraged all teachers to take advantage of the shs1 billion allocated to Kumi district and Kumi Municipality by the cooperative union for social economic empowerment.
Paul Oketcho, representing the Cooperative Union General Manager, noted that around 80 percent of teachers in the country currently have loans with various financial institutions.
He assured the audience that discussions would be initiated to potentially consolidate or buy off these multiple loans, allowing teachers to benefit from a revolving fund with lower interest rates.
John Stephen Kasadha, the Kumi Chief Administrative Officer, urged teachers to be grateful for the union’s commitment to assist in clearing their multiple loans.
He acknowledged the immense strain teachers face due to these debts, which has led some to compromise their dignity by mortgaging their academic credentials to unscrupulous money lenders.
Kasadha highlighted the unfortunate reality that some of these important documents are often lost in the process, leaving teachers struggling to recover them.
James Kyomya, the Acting Resident District Commissioner for Kumi, mentioned that alleviating these loans would significantly enhance educational quality, as many teachers are preoccupied with their financial burdens while in the classroom.
Several speakers encouraged teachers benefiting from the revolving fund to invest in meaningful projects rather than luxury items, ensuring they are capable of repaying the loans.
Across the nation, there are approximately 250 teachers’ SACCOs, with 18 located in the Teso region.
-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
