How does Sacco work in Kenya?

How do Saccos operate in Kenya?

A SACCO (Savings and Credit Cooperative Organization) is a group of people with similar interests who come together to form a credit union. They register the union with the Ministry of Cooperatives, which in turn authorizes the SACCO to receive deposits and provide loans to its members.

What should I know before joining a Sacco?

Factors to consider when joining a SACCO

  • You must be a member first before you save. …
  • Savings and contributions must be regular. …
  • A default can lead to termination of membership. …
  • To save is to deposit and to access deposit is to borrow. …
  • Saving and contributions have a minimum limit. …
  • No borrowing without guarantor ship.


What are the benefits of a Sacco?

What Makes a Sacco Different: The Benefits of Joining a Sacco

  • Saccos inspire a saving culture. One thing about money is that it is rarely enough. …
  • Return on investment. Saccos give dividends annually to their members. …
  • Emergency loans. …
  • Limited liability. …
  • Investment opportunities. …
  • Cheap interest rates on loans.
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What does a Sacco do?

A SACCOs is a self-help, unique member-driven, and democratic co-operative. It’s governed, owned, and managed by its members who share a common bond like a labour union, working for the same employer, belonging to the same church, social fraternity or living in the same community.

Which is the best Sacco to join in Kenya?

List of the best Saccos in Kenya for savings and investment in 2021

  • Sheria Sacco. …
  • Kenya Police Sacco. …
  • Mwalimu Sacco. …
  • Harambee Sacco. …
  • Unaitas Sacco. …
  • Hazina Sacco. …
  • Kenya Bankers Sacco. …
  • United Nations Sacco Society. United Nations Sacco is one of the best-managed Saccos in the country and has been in operation for over 40 years.


Which is the biggest Sacco in Kenya?


1 Stima Sacco 17%
2 Police Sacco 17%
3 Gusii Mwalimu Sacco 17%
4 Sheria Sacco Educationnewshub 16%

Can you withdraw money from a Sacco?

You need to apply for withdrawal from the Sacco in a formal signed letter giving the Sacco sixty days notice in line with Sacco by laws. The letter should be accompanied by your ID copy.

Can you join more than one Sacco in Kenya?

Yes. As long as the said member shall belong to no more than one Sacco Society having similar objectives as mentioned above.

What are shares in a Sacco?

Shares are units of equity ownership interest in a corporation or SACCO that exists as a financial asset providing for an equal distribution in any residual profits, if any are declared, in the form of dividends. … Share capital is a unit of ownership in the Sacco that a member obtains to become a co-owner.

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What are the challenges of SACCOs?

Despite of some challenges facing SACCOs such as delay in payment of the loan; poor management of database system; lack of enough capital, insufficient debt and equity funds to pass to the poor, poor computerized system; and delaying of presentation of financial reports to clients/ members, still yet SMEs operate their …

What does Sacco stand for?

Acronym. Definition. SACCO. Savings and Credit Cooperative Organisation.

NAIROBI – Savings and credit cooperative societies, commonly known as SACCOS, are becoming increasingly popular in Kenya. … Their ability of SACCOs to provide loans at relatively low interest rates has attracted members and contributed to their growth across Kenya.

How do I withdraw money from Stima Sacco mpesa?

Follow the steps below.

  1. Open your dialer app on your mobile phone and dial *489#.
  2. If you are not registered, follow the prompts to activate the service.
  3. Select withdraw to Mpesa and enter your mpawa pin.
  4. Once the deposit is complete, you will receive a Mpesa message.


How do you make a Sacco?

Registration Requirements for a Non Deposit Taking Sacco

  1. Formal request in writing to the commissioner for cooperative development with intent for the formation of a non-deposit taking Sacco.
  2. Proposed Names for Search and approval.
  3. Objectives of the society.
  4. The number of members in the society ( at least 10 members)
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