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What makes a SACCO different:

Updated: May 14

Here are some Sacco saving tips.

A SACCO is a Savings and Credit Cooperative Organization that is owned, managed and run by its members who have a common bond.

SACCOs have been that bubble in Kenya that we can’t just seem to get over it. Considering the number of ‘get-rich-quick schemes’ and upcoming Saccos there is a need for one to do their due diligence.


Some of the things you should pay attention to include:

1. The reputation of the Sacco

In the age of the digital era, ignorance is bliss! Research how long has the Sacco existed, its kind of operations, its mission and vision, and its achievements so far.

Verify with SASRA which is a Kenyan Sacco regulatory body to effectively regulate, supervise and develop the Sacco industry on the licensed saccos.


A SACCO is a Savings and Credit Cooperative Organization that is owned, managed and run by its members who have a common bond. SACCOs have been that bubble in Kenya that we can’t just seem to get over it. Considering the number of ‘get-rich-quick schemes’ and upcoming Saccos there is a need for one to do their due diligence. Some of the things you should pay attention to include: 1. The reputation of the Sacco In the age of the digital era, ignorance is bliss! Research how long has the Sacco existed, its kind of operations, its mission and vision, and its achievements so far. Verify with SASRA which is a Kenyan Sacco regulatory body to effectively regulate, supervise and develop the Sacco industry on the licensed saccos. 2.Terms and conditions of membership Sacco look profitable with the low loan interest rates but understanding the terms and conditions of being a member and how you can qualify for a loan is very important. I once wanted to join a Sacco but reading through the terms and conditions I found that I could not join another Sacco meaning I was only tied to that particular Sacco. 3.Guarantor requirements. This can be a big headache for you as the aim of joining a Sacco is to save and access loans at low interest rates. A guarantor is a person who guarantees to pay for someone else’s debt if he or she should default on a loan obligation.

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But here’s the catch saccos need you to provide guarantors as a loan requirement you will, therefore, need to join a Sacco with at least five people you know well so that you can guarantee each other when in need of a loan.

4.whats in it for you?

How much loan do you qualify for based on your savings? Is it realistic and worth it?

Some saccos allow its members to borrow up to three times their savings which is a good deal yet some may not.

learn other rules and conditions such as the interest rate earned on dividends, the acceptable securities for a loan and even the kind of loans they offer and whether they fit your financial capability.

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