If you’re not yet a member of a savings and credit co-operative society (Sacco), now is the perfect time to consider joining one before the end of 2024 of early 2025. By registering with a Sacco, you unlock a treasure trove of benefits that can significantly enhance your financial wellbeing. As more people discover the advantages of Saccos and new ones emerge, there’s never been a better moment to get on board. A Sacco offers you a unique platform for saving and borrowing, empowering you to achieve your financial ambitions.
Belonging to a Sacco means you can pool resources with others for mutual benefit, transforming your savings into powerful financial leverage. For instance, if you save Ksh100,000, you can qualify for a loan up to three times that amount—potentially accessing Ksh300,000 to tackle urgent financial needs or realize a specific dream. Moreover, some Saccos even offer loans exceeding three times your deposits.
Joining a Sacco makes you an owner, granting you a voice in its operations. As outlined in The Guidance Notes on the Co-operative Principles from the International Co-operative Alliance (ICA), “Members of a co-operative are individuals or corporate organisations who actively engage with the co-operative’s offerings.” This means you participate in a democratic organization where members set policies and make decisions. By becoming a member of a Sacco, you gain voting rights, ensuring your opinions help shape the society’s future.
The benefits are plentiful. You can access comprehensive financial education and counseling tailored to your needs. A vast array of loan options awaits you, including those for development, emergencies, or business ventures. Whether your goals are saving for education, planning a holiday, addressing health expenses, or purchasing property, Saccos are equipped to support you. Additionally, many offer diverse insurance products, allowing you to manage premiums efficiently through your Sacco.
While some Saccos may offer fewer services, they typically address most of your banking and financial necessities. Traditionally, members relied solely on guarantors for loans, but today’s Saccos provide various options such as title deeds and logbooks, giving you multiple ways to secure loans as a valued member. Join a Sacco and experience the power of collective financial empowerment!
There are inspiring stories of financial inclusion from Saccos as highlighted by the World Council of Credit Unions (WOCCU). Saccos are banking unbanked. WOCCU reports that its partner financial institutions are sending field officers on motorbikes to reach remote villages, providing essential financial services via smartphones. These field officers create small groups to connect with members personally, facilitating deposits, loan applications, payments, and sign-ups for new members. As an international trade association and development agency for credit unions, WOCCU is dedicated to enhancing lives through credit unions and financial cooperatives by focusing on advocacy, development, and education.
In their financial inclusion narrative, WOCCU emphasizes that direct contact cultivates trust among previously unbanked individuals, leading them to access finance and savings. In Mexico, 54 credit unions have successfully established 235 points of service across 22 states, employing the field officer banking model to serve over 250,000 marginalized individuals within three years, far exceeding the program’s 15 percent market penetration target. A similar success story unfolds in Colombia, where the field officer banking approach has delivered affordable and accessible financial services to more than 253,000 low-income and unbanked persons, including marginalized Afro-Colombian and indigenous groups, farmers, displaced individuals, and small to medium enterprises in rural areas.
In Kenya, the innovative strategy of using boda boda riders for outreach is paving the way for financial inclusion. Over the past 15 years, Kenya has made significant strides in harnessing digital financial services, thanks to an unprecedented surge in mobile connectivity. This progress has effectively dismantled geographical barriers, enabling financial service providers to reach citizens nationwide. Saccos are leveraging this technological advancement to serve customers more efficiently, and as a result, a growing number of Kenyans are enjoying the benefits of this digital revolution.
Access to financial services plays a crucial role in economic and social inclusion. The World Bank asserts that financial access not only facilitates daily living but also empowers families and businesses to plan for both long-term objectives and unforeseen emergencies. According to the World Bank, account holders are more inclined to utilize additional financial services such as credit and insurance, enabling them to start and expand businesses, invest in education and health, manage risks, and navigate financial challenges, ultimately improving their quality of life. Access to a transaction account is a pivotal first step toward broader financial inclusion, as it allows individuals to store money and send and receive payments, effectively serving as a gateway to a wealth of other financial services.
