Saving money in a SACCO (savings and credit cooperative organization) can be beneficial because it allows individuals to pool their savings and access loans at lower interest rates.
SACCOs are also typically owned and controlled by their members, which can create a sense of community and shared investment in the organization’s success.
Additionally, SACCOs may offer additional services such as insurance and financial education. However, It’s also important to research about the SACCO you want to join, as some may be not safe and well-managed.
Here are some advantages of SACCOs
- Lower interest rates on loans: SACCOs allow members to access loans at lower interest rates than they might be able to find elsewhere.
- Pooled savings: By pooling their savings together, members of a SACCO are able to access larger sums of money than they might be able to individually.
- Community ownership: SACCOs are typically owned and controlled by their members, which can create a sense of community and shared investment in the organization’s success.
- Additional services: Many SACCOs offer additional services such as insurance and financial education.
- Social Impact: SACCOs often use their resources to support social and economic development in the communities they serve.
- Diversification of savings: Sacco’s usually invest the savings into different ventures like shares, real estate, treasury bonds and other that can generate income for the members.
- Tax benefits: SACCOs are often tax-exempt organizations, which can save members money on their taxes.
- Easy access to funds: SACCOs often provide members with easy access to their savings, through ATM cards, mobile banking and other electronic platforms.
Here are some examples of SACCOs in Kenya:
- Kenya Police Sacco Society Ltd
- Kenya Post Office Savings Bank Sacco Ltd
- Kenya National Union of Teachers Sacco Ltd
- Kenya Medical Practitioners and Dentists Union Sacco Ltd
- Kenya Civil Aviation Authority Sacco Society Ltd
- Kenya Union of Commercial Food and Allied Workers Sacco Ltd
- Kenya National Union of Nurses Sacco Ltd
- Kenya Union of Journalists Sacco Ltd
- Kenya National Private Security Workers Sacco Ltd
- Kenya Union of Savings and Credit Cooperative (KUSCCO)
Please note that this is not an exhaustive list and there are many other SACCOs in Kenya, as the sector is very active and dynamic.