It is yet another time of the year when Savings and Credit Co-operative Societies (Saccos) submit annual reports and financial statements to members. Sacco members wait this season with hope and expectations for good returns on their investment. So far, so good; most Societies have announced good dividends. It’s a windfall for members.
But there is so much more Saccos offer to members than dividends; they promote economic freedom by empowering poor and low-income members to build a more stable economic future with loans for microenterprise and agriculture.Â
Saccos enable members to save money and apply for low-interest rates loans. Members have the opportunity to benefit from simple loan terms and conditions. Compared to traditional banks, Saccos offer members better interest rates if members need a loan during these challenging times.
Studies show Saccos offer higher savings rates and lower interest rates on loans. Since they’re not focused on making profits but on covering their operating costs instead, co-operatives are able to offer better interest rates to their members.
Co-operatives are locally-owned private sector businesses that arise from locally-identified needs. Sacco members come together for a common bond.
Co-operative Societies help people manage debt through financial literacy and supporting access to capital for small businesses and farmers.
They strengthen communities “from the ground up,” fostering the dignity of individuals and expanding opportunities for everyone – including women, youth and the most vulnerable.
Co-operatives are people–centered enterprises, jointly owned, democratically controlled, and run by and for members to realize their common economic, social, and cultural needs and aspirations. They thrive in many important sectors of the economy – agriculture, energy, finance, housing, health, and information technology.
As businesses driven by values (not only profit), fairness, equality, and social justice are at the heart of the co-operative business model. Co-operatives around the world help people work together to create sustainable enterprises that generate long-term jobs and community prosperity.
According to Overseas Co-operative Development Council 2021 research, in Kenya, local co-operative members attributed their higher income and improved economic well-being to co-operative membership: 97% said membership improved their household’s financial situation; 63% cited access to loans, savings, shares, and commissions as critical to income diversification and for support during financial hardship; 91% cited improved access to markets as a key benefit of co-operative membership.
The Council noted that, holistically, co-operative members enjoy a better sense of overall well-being, financial security, and trust in their community than nonmembers. During times of need, co-operative members have improved access to social support systems and other resources that support their resilience and ability to weather adverse events. The research further shows that women members gain independence and agency from co-operative membership. Co-operatives offer training, support, and leadership opportunities to women, with wide-reaching impacts on their well-being. What Difference Do Co-operatives Make? Building on A Foundation of Success.
