Savings and Credit Cooperative Societies (Saccos) have a dual mandate of mobilizing savings and extending affordable credit to its members.
In 2022, regulated Saccos disbursed Ksh680.35 billion in loans to 6.42 million members, with each member receiving an average of Ksh104,000 for investment or to meet budget demands.
Land and housing accounted for 33.24% of the loans disbursed, with education consuming 21.98%. Saccos have purchased vast land parcels in counties such as Kajiado, Laikipia, Nyandarua, and Nakuru, which they subdivide for interested members to purchase.
With devolution, new market centers are emerging across the country, giving members an opportunity to own property and be part of the growth witnessed in these centers.
For some members, the Ksh104,000 is sufficient to pay school fees in national schools or tertiary colleges, while others use it for small-scale chicken rearing, tomato or onion farming, or as start-up capital for small businesses.
Saccos have thus contributed significantly to the country’s economic growth, creating employment, and stimulating GDP. While the average interest rate is single-digit, some Saccos pay a double-digit interest rate. Despite the debate between dividends and loans, the latter emerges as a significant pillar driving member empowerment in their respective Saccos.
