Umwalimu Saving and Credit Cooperative shareholder teachers will not issue dividends but reinvest the extra income to raise financial viability.

According to the official figures, Umwalimu Saving and Credit Cooperative is weighed down by Rwf76 billion of disbursed loans to members, while current deposits stand at Rwf45 billion.

While since its establishment the cooperative’s members’ savings have generated Rwf53 billion of profit, the management said this money is currently used to bridge the gap.

“Our profit pool of Rwf53 billion usually comes to bridge the gap on the cooperative’s deposit to sustain our loan scheme,” said Laurance Uwambaje, the Director-General of Umwalimu Sacco.

Official figures show the annual Rwf6 billion profit posts on average, translated over its 98,000 members would allow each one Rwf23,000 every year.

Ms Uwambaje says Central bank regulations require credit and saving cooperatives and banks to maintain 40 percent of their total assets as deposits, and thereafter seek other possible investments.

“Due to the high demand for advances and investments we need like upgrading our technology, we normally present these needs to the teachers’ representatives to decide how to disburse or invest the remaining 60 percent,” she added.

Some member loan requests have been turned down, largely due to the Rwf11 billion budget deficit the cooperative carries.

Of the government’s pledge to increase the capacity of Umwalimu Sacco's funds lend to teachers by Rwf30 billion, only Rwf19 billion has been provided leaving a gap of Rwf11 billion.

But some teachers are pressing the Sacco to issue dividends to tide members over the tough times.

“I have taught over a decade but haven’t received a bonus. With the pandemic effects biting, Umwalimu should consider at least a one-year bonus,” Jean-Pierre Sindayigaya, a teacher in Gicumbi.