what is a Sacco

A SACCO is an acronym for Savings and Credit Cooperative Organizations. It is owned, governed and managed by its members who have the same common bond: they may be working for the same employer, belonging to the same church, labour union, social fraternity or living/working in the same community

Why join a Sacco

  • Savings are mobilized locally and returned to members in the form of loans. The money stays and works within the members.
  • Unlike other places where interest rates may not be negotiable and already pre – determined, SACCO interest rates are set by the members themselves depending on the circumstances in the community they live.
  • SACCOs encourage members to save as a way of building a resource base for credit.
  • SACCOs educate their members in financial matters by teaching prudent handling of money, how to keep track of finances and how to budget.

Why form a sacco

To have easy access to Safe and Sound Financial Services in a Convenient and sustainable manner

What you need to know before joining a sacco

  • Not to force anybody to join, only sell ideas and convince
  • Keep minutes of the discussion and meetings held
  • Formulate a Simple plan
  • Document all processes taken, decision agreed upon and strategies laid out
  • Keep a full list of the people (names and addresses) that have enlisted as members
  • Keep an up-to date and correct record of money received from any interested person
  • Minimize expenditure and operate with transparency
  • Study and understand all relevant laws and regulations that govern the cooperative business namely
    • The 1991 Cooperative Statute
    • The 1992 Cooperative Societies Regulations
    • The draft by laws of the SACCO

What SACCOS offer Members?

Every potential member must purchase a minimum share as determined by the SACCO making each member an owner of the cooperative. Once the share has been fully paid up, all other contributions will go towards savings.

A member’s monthly contribution is usually split between various types of savings accounts. Savings unlike shares are withdrawn on demand. Each SACCO determines amongst its members what the minimum savings per member will be.

Members are encouraged to save toward loans. Loans are ratio based on member’s savings and shares. Individuals who have established their credit worthiness through regular savings and are able to show ability to repay a loan can earn the privilege of borrowing these savings in the form of a loan. Some loans are made for productive, income generating activities, a business idea; other loans are made for provident purposes such as schools fees, funerals and weddings.

Quick/Emergency loans:
Emergency loans are short-term quick loans available to members to meet unforeseen circumstances, not budgeted for.