ILO agitates for financial discipline in business

Safaricom Limited shareholders follow proceedings during last year’s Annual General Meeting in Nairobi. Safaricom Sacco membership base includes all employees of companies affiliated to the telcom firm. PHOTO | FILE 

The International Labour Organization (ILO) has appealed to the business community and entrepreneurs to create a culture of funds management so as to excel in business.

ILO facilitator in the country, Anna Ngowi, made the call at the weekend when conducting training to Savings and Credit Coooperative Societies (SACCOS) members belonging to government health institutions.


The training involved SACCOS staff from the Ministry of Health and Social Welfare, Ocean Road Cancer Institute (ORCI), Government Chief Chemist Office, Muhimbili University of Health and Allied Sciences (MUHAS) and other health institutions.

She said experience had shown that mismanagement of money had greatly contribution to business failure since it led to unnecessary expenditure.

The facilitator clarified that since they failed to observe money discipline their business firms also collapsed.

According to her, excessive expenditure was detrimental to business achievement.

Ngowi, who has experience of over 20 years in entrepreneurship, said there was no need to possess huge amounts of money without a specific target.

"I call on workers who seek loans to use the money specifically for the purpose it was requested and avoid mismanagement of funds, “she advised.

She said in order to achieve their goals it was necessary for them to build the culture of keeping good records of their businesses.

For his part, Afya SACOOS Manager, Nicco Kisinini, said the training was part of its general plan to provide its members with knowledge on cooperatives.

She said it also aimed at building the capacity its members from different social welfare cadres about entrepreneurship, especially when they had retired.

For her part, Afya SACCOS Marketing Officer, Kekue Mafore, said one of great challenges facing them was delay in premiums deducted from workers’ salaries meant for SACCOS development.

She elaborated that the premiums collected from the workers’ salaries took a long time to reach the SACCOS, hence caused delays for workers, especially when they needed loans.

“I call on the government to disburse funds to the SACCOS timely in order to enable the workers to receive their loans timely,” she said.