A Sacco is a autonomous association of people united voluntarily to meet their common endomic, societal and cultural needs and aspiration through a jointly owned and democratically controlled enterprise.
Saccos have grown in Kenya over the last two decades and growth accelerated as banks shunned individual customers and instead turned to corporate and government due to the high risk profile for lending individuals.
Saccos are great way for individuals to save and are also make dividend payments annually on individual’s contributions. Some saccos pay dividends once a year, others pay dividend twice a year as well. For most the dividend payment has been much higher than what most banks offer as interest in Fixed deposits
5 reasons you need to be in Sacco
1. Whether you earn a six figure salary or a just starting out in your career you need to be able to put away part your income and a Sacco is just one great place to do so. Saccos are also regulated by the government. But to be sure you need to ensure this by checking with the Sasra. Please click on the attachment below to see the list of licensed Saccos.
2021 Licensed SACCOs Please Find Attachment :
2. Sacco have several products for members, including mobile loans which usually range from 5 to 7% per month which members can use for emergencies. Saccos also have longer term loans with interest at 1% per month on a reducing balance. Most Saccos will give loan amounts between 3 to 5 times on members deposit. Members can access different type of loans.
Saccos will have loans which can be paid in 12 months, 24 months, 36 or even upto 84 months.
3. Unlike a checking bank account, you will earn money from your dividends. If you like to protect your income from fees and other charges incurred by operating your account. You may just consider saving in a Sacco.
4. You can consolidate your loans into a Sacco from commercial banks, credit card loans, commercial banks loans, since there will be a saving in interest payments since Saccos will have lower interest.
5. Saccos are more flexible. In your interaction with the Sacco, you will be dealing with someone you know or knows you very well unlike a bank.