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Why you need to become a sacco member

kuscco

The Chairman, Standing Senate Committee on Tourism, Trade and Industrialization, Dr. Ali Abdillahi addressing participants during the 6th Kenya Union of Savings and Credit Co-operatives Limited (KUSCCO) Leaders Conference in Mombasa. FILE PHOTO | NMG

Summary

  • Kenya has a vibrant co-operative culture, with a number of individuals investing in Savings and Credit Co-operative Societies (saccos).
  • Some have helped to grow their members through investing member savings in joint ventures such as land or real-estate that members access at reduced rates.
  • To gain from your sacco, you need to save consistently and grow your savings so that you can get healthy dividends.

Saving regularly, whether individually or as a group, is a virtue that has been told and retold. Saving money has seen many people gain and secure financial freedom.

Kenya has a vibrant co-operative culture, with a number of individuals investing in Savings and Credit Co-operative Societies (saccos).

A majority of saccos in Kenya trace their roots from table banking founded by people with shared values.

This vibrancy is due to the difference in operating structure from other financial institutions. Unlike other financial institutions, saccos are member-owned. This essentially means that every member has a stake. Members decide at AGMs or through other mechanism agreed.

Their structures are not as rigid as other financial institutions as they provide and create a culture of belonging to all members.

You borrow against your savings or another member or members can guarantee you.

To gain from your sacco, you need to save consistently and grow your savings so that you can get healthy dividends. Saving diligently also enables you to secure higher loans that are interest friendly up to three or four times your savings.

EMERGENCY LOANS

Digitisation has created a lot of efficiencies, making borrowing simpler and the monies disbursed through mobile banking. Real time information is also available.

Some have helped to grow their members through investing member savings in joint ventures such as land or real-estate that members access at reduced rates.

Saccos have emergency loans for school fees, medical needs or other unexpected costs. These loans can be processed within minutes which helps members to avoid shylocks.

Investing in a sacco is a good idea for growing wealth. The benefits are immense, the risks are low and the rewards are life-long.

Let’s all be part of the success stories in our saccos by saving regularly.