Human life finds relevance and significance with the prospect of waking up to accomplish a task making the working person happy and fulfilled. Retirement brings the loss of previous position held at work hence engendering low self-esteem, leading to depression and premature death among retirees.

 

The Local Authorities Pension Trust (LAPTRUST) together with LAPTRUST Pensioners Association established the Local Authorities Pensioners Association Savings and Credit Co-operative (LAPA Sacco) in May 2010 to eliminate pensioners 19 requests for advance pension payments. The Sacco was to facilitate savings and to provide affordable credit to the members. With a Vision to promote financial freedom and alleviate poverty among pensioners in old age, the Sacco has grown to USD130,000 with a membership of 452 of the 5,000 pensioners.

 

Pensioners earning USD33 monthly and above are eligible to join. With a minimum monthly contribution of USD5 a member may after six months of joining, borrow up to three times the amount of their savings.

 

The loan is repaid within five years at a monthly interest rate of 1% on the reducing balance. Using the loans pensioners engage in productive socioeconomic activities like farming, retailing, financing existing businesses and land buying.