Why Saccos are getting all the attention today
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By Evans Ongwae
If you don’t belong to any savings and credit co-operative society (Sacco), maybe it is time you consider joining one this year. Registering with a Sacco puts you on the path to enjoying a wide range of benefits.
More people are joining Saccos, and new ones are getting established. A Sacco provides you with a platform for saving and borrowing money to meet your financial goals. You tap the advantage of belonging to a society that pools financial resources for mutual benefit.
One of the most powerful forces that make Saccos attractive savings vehicles is how your deposits enable you to access big loans. For example, if you have accumulated Ksh100,000, you will be eligible to take a loan three times that amount. So, you can access up to Ksh300,000, an amount you can use to sort out urgent financial needs or attain a specific goal. Some Saccos offer loans amounting to more than three times your deposits.
Remember that when you join a Sacco, you become one of the owners. You have a say in the running of its affairs. According to The Guidance Notes on the Co-operative Principles published by the International Co-operative Alliance (ICA), “Members of a co-operative are individuals (natural persons) or corporate organisations (legal persons) who are users of a co-operative’s services or participate in its business enterprise as consumers, workers, producers, or independent business owners.”
This alliance is the global steward of the Statement on the Co-operative Identity – the Values and Principles of the co-operative movement. ICA further states: “Co-operatives are democratic organisations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership.”
This means when you become a member of a Sacco, you have voting rights. Through your vote, your voice is heard, and you are involved in shaping the society’s future.
From your Sacco, you will receive a wide range of servings you will hardly get anywhere else. You will receive financial education and counselling. You can access a variety of loans, including development, emergency, and business loans. You can save for different financial goals: Education, holidays, health, or property purchase (a car, a house or household goods). You can also purchase all kinds of insurance products or pay for premiums through your Sacco.
Some Saccos may lack as many products and services, but they generally tend to cover a lot of banking and financial needs.
For long, Sacco members have used guarantors to access loans. However, more options are used today. They include title deeds and log books, among others, giving you, as a member, a range of options you can use to secure your loans.
Kenya’s Sacco movement is one of the most vibrant in Africa. To find out more concerning recent developments and read about Saccos that are keen to continue enrolling members, download a special supplement from here.
