SACCO stands for Savings and Credit Cooperative Organization. Best SACCOs in Kenya are those regulated by SASRA (SACCO Societies Regulatory Authority) since the authority checks on the activities of SACCOs to minimize risks of members losing their hard-earned money. Most SACCOs are managed by a professional committee or delegates elected by members annually or according to the laws of the organization.
SACCOs in Kenya serve the interests of people with similar views; occupational or communal. For example, there are those SACCOs serving only farmers, and those serving only teachers in a given county or region.
Some SACCOs, accept membership from any employed person.
When you register with a SACCO, you agree to save a minimum monthly contribution. This instills a saving discipline since you can only withdraw your savings once you exit the SACCO. However, you get to earn yearly dividends on your savings.
In some SACCOs, like Mwalimu National SACCO, the next of keen can take over the running of a member’s account upon the member’s demise, not to mention from the member’s savings doubling.
SACCOs VS Banks in Kenya
How do SACCOs make money? SACCOs make money mostly on the small interest from loans they lend to members.