The total membership served by the regulated Saccos is steadily growing, with the latest Sacco Societies Regulatory Authority (SASRA) data indicating there are over 6.42 million Kenyans served by Saccos. Investing in Saccos pays off. Many people are realizing this. SASRA data shows members’ savings and deposits in Saccos are growing exponentially.
The Sacco industry continues to play a critical role in the country’s economic development and the attainment of sustainable development goals.
Saccos are member-led organizations providing tailored financial services to their members. There are many instruments to choose from when it comes to investing and saving money. Choosing Saccos comes with many benefits.
Dividends: When a Sacco financial performance is good, members earn attractive dividends from their investment in share capital. Saccos also pay interest rates on deposits annually, growing your money.
Saving Culture: Generally, Sacco members are good savers. Being a Sacco member requires you to save regularly, improving your saving culture. This way, you secure your future and acquire saving discipline. Over time, you will be able to accumulate wealth. Saccos saves you from spending unnecessarily by ensuring you do not access your savings easily. You are committed to saving for particular goals and achieving them. Bank savings accounts, fixed deposits, MMFs, Treasury bonds and bills all have one thing in common– they only pay interest; Saccos offer that and more. In a Sacco, you can grow your money in various ways: earning dividends, rebates and appreciation of your shares. You can save more and invest more.
Affordable credit: Perhaps one of the greatest advantages of Sacco members is accessing credit at affordable rates. They borrow three times or more against their savings. Unlike other financial institutions, Sacco’s interest rates on loans are not volatile. Saccos also offer different types of loans customized to members’ financial needs.
Saccos operate under cooperative principles and are not-for-profit institutions like commercial banks.
Saccos are driven by the principle of people helping people – members who pool their savings, which are then used to provide loans and other financial services to fellow members. Saccos are member-centric and embrace community support. Saccos also focus on financial inclusion. Profit margins and shareholder returns majorly guide banks.
Worldwide, there are over 400 million Sacco members and over a billion in the co-operative sector. They are client-friendly financial institutions that exist to emancipate members economically.
Sacco members are more likely to achieve their development goals. They can easily buy a vehicle, build residential or commercial properties and own land through afford asset financing.
People need help to invest, and Saccos conveniently come in. The Sacco comes with a lesser burden of high-interest loans. Most generally charge members fairly lower interest rates, often on reducing balance. In a Sacco, the borrowing rate is predictable, and you can easily manage repayments.
Saccos also provide a platform for joint investment. Most have joint investment projects which members can use in building individual wealth.
The time-tested strategy for building wealth is to consistently save money, make investments, and wait patiently for that money to grow over time. Saccos are the best vehicles for wealth creation.
