Saccos stand as pillars of financial strength, safeguarding billions and intertwining deeply with local communities. They have a history of delivering reliable returns to their members for decades.
However, step onto a university campus or into a tech hub, and you’ll encounter a generation viewing Saccos with a mix of curiosity and skepticism. It’s tempting to see this youth disengagement as mere cultural preference, but there’s more beneath the surface. The reality is clear: while access to Saccos is available, their relevance is in question. If Saccos are to thrive and remain the go-to option for saving and community investment, they must evolve to capture the interests and needs of today’s youth.
Let’s start with the hard numbers about access and exclusion. Kenya’s financial inclusion story is strong on paper, with formal access reported at about 84.8 percent in the 2024 FinAccess survey. But the headline obscures a stubborn problem. Young people, especially those ages 18 to 25, show higher exclusion and distinct usage patterns. The 2021 FinAccess survey put youth exclusion at roughly 22.5 percent, and follow-up analysis in 2024 shows that many of the gains in inclusion are driven by mobile money, not deeper forms of saving or investment that build wealth. In short, youth have access to payment rails, but they are not plugging into institutions that produce savings discipline, long-term returns, or formal credit histories in the way Saccos are designed to do.
What explains the gap between access and trust?
First, experience and expectation have diverged. Young Kenyans grew up with mobile money and instant UX. They expect real-time balances, frictionless onboarding, and transfers that work without a trip to a branch. Many Saccos still rely on manual processes, paper ledgers, and monthly meetings that are designed for a different era.
Second, perception matters. A headline about a mismanaged cooperative reverberates across networks and becomes shorthand for “risky” or “opaque.”
Third, the rise of alternative channels such as peer savings groups, agent-based services, and app-driven micro-investing means youth have choices, often ones that feel faster even if they carry more risk. Those choices are winning not because they are always better, but because they match how young people live and work.
This is a governance and communications problem as much as it is a product problem. When a member signs up for a SACCO, they are buying into a promise: that their savings will be safe, that they will be able to access useful loans, and that governance will be accountable. But trust erodes when there is weak reporting, when statements arrive late, or when dividends are unclear. Transparency is not optional. Publishing timely performance summaries, simplifying accounts so a 25-year-old can understand what their shares earn, and showing exactly how loans are approved will do more to restore confidence than a single flashy marketing campaign. SASRA’s supervision reports show sector growth and stability, but member perception is shaped in the everyday friction points, not in regulatory filings.
If Saccos want to be the default place where youth save and invest, they must meet youth where they already are: on phones, in digital communities, and in gig economy flows. That does not mean abandoning the cooperative model. It means building a front door that is mobile first. It means creating flexible contribution products for irregular earners, for example, weekly or payday-linked deposits that are visible and reversible in real-time. It means designing app experiences that show projected dividends, loan amortization schedules, and easy documentation uploads so a young entrepreneur can apply for a business loan while closing a sale. Practical steps like integrating M-Pesa collections, offering instant account statements, and introducing micro share purchases change behavior because they remove excuses.
Product innovation also has to be relevant. Young people are not only looking for credit; they are looking for pathways to grow. Saccos can design starter investment products with low minimums, such as a youth unit trust, a member crowd equity pool for youth businesses, or a matched savings product for education or tools. Training and mentorship should be packaged as part of membership, not an afterthought. Imagine a SACCO that offers a three-month entrepreneurial boot camp paired with a KSh 20,000 graduated loan that has clear performance checkpoints. That is not charity; it is an investment in member retention and better loan performance. And because Saccos are member-owned, successful youth members become visible advocates who change perception faster than any advert.
There are operational barriers you must face honestly. Digital platforms cost money, and small Saccos worry about cyber risk and software uptime. Governance reforms are hard. But these are solvable. Pooling resources through SACCO unions, leveraging vendor financing for core banking systems, and partnering with reputable fintech firms reduces initial capital strain and spreads risk. Equally important is process redesign. Speeding up loan approval does not mean dropping checks; it means improving data collection so risk can be assessed quickly, using mobile KYC, and building automated decision rules that still respect local knowledge and guarantorship models. The technology is available, and donor and development partners have signaled willingness to fund inclusivity projects that target youth.
Finally, think like a member, not like a manager. A 30-second onboarding video, a simple mobile dashboard, a youth ambassador program, and monthly digital town halls create the experience that produces trust. Reporting on performance should be regular and plain. Tell members what their shares did last quarter, how much the SACCO invested, and how decisions on reserves are being made. When a young member sees their SACCO act like a modern financial institution, they will stay. And when they stay, the cooperative gains a generation of long-term capital, leaders, and entrepreneurs. That is not nostalgia; that is strategy.
Kenya’s youth have not abandoned the idea of saving. They have voted with their attention for products that fit their lives. For Saccos that accept this, the opportunity is large. You already have what many fintechs lack: a community bond and a clear governance structure. If you can combine that with responsive digital services, clear reporting, and youth-oriented products, Saccos will be where young Kenyans build their financial lives. The question is simple: will we adapt fast enough to make them believe it?
Authored by Kimani Patrick, a strategic communications specialist and CEO of The Carlstic Group Ltd. He’s available on email at [email protected]
