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benefits of joining a sacco

SACCOs in Kenya are on the rise, and investing in one could be very profitable. A SACCO is a self-help, unique member-driven, and democratic cooperative. It is governed, owned, and managed by its members, who share a common bond like a labour union, work for the same employer, belong to the same church, belong to a social fraternity, or live in the same community. A SACCO is not only regulated by the central bank of Kenya but also crosses all economic sectors. The SACCO concept is based on a solidarity approach that aids in the development of the SACCO and serves to encompass the shared care, concern, and prosperity for their members by providing savings and credit facilities to members and encouraging them to make financial contributions so that they could improve their standards of living. Read the following article to learn more about the history of SACCOs in Kenya.

SACCO’s structure and strategies are based on the six pillars of cooperatives. These are Self-help, Self-responsibility, Democracy, Equality, Equity, and Solidarity. These provide the framework that holds the benefits of joining a SACCO. You can read the following article to learn more about the six pillars of cooperative.


With the financial crisis and more individuals being laid off than we can keep up with, SACCOs are heavily influenced. Members are forced to withdraw their savings to meet basic demands. In times like these, society must work and jointly create a comfortable environment for everyone. Joining a SACCO today will help the country’s economic resilience and increase the institution’s ability to support members. Beginning to save money will result in a better financial status for members even after the crisis has passed. Even though young people are unfamiliar with SACCO banking, including how it works and why it is so helpful, they have yet to completely embrace it to save money. SACCOs are an excellent choice for anyone wishing to financially empower themselves.

Whether as an individual or a group, here are some major benefits of joining a SACCO.

    • Quick Access to loans

As opposed to acquiring loans from banks, getting loans through SACCOs is much quicker and less expensive. Your loan would be processed expeditiously if you are a member and have a strong history of saving. Most SACCOs also offer their members access to emergency loans. Members that require help paying for things like funerals, housing, school fees, or medical expenses can apply for these urgent, short-term loans. On the other hand, banks would require you to fill out several documents, with little assurance that you would receive the loan.

    • Promote a saving culture.

Following your membership registration, you must make a minimum savings contribution. You can develop financial discipline by doing this, which is less demanding than trying to save money at home or through other conventional means. Unless you quit the SACCO, you won’t be able to access your savings once you’ve begun saving.

    •  Cheaper Loan InterestsHow to Pay Down Credit Cards/Loans on a Tight Budget - CRB KENYA

SACCOs impose interest rates on loans that are unmatched by banks in terms of affordability. Higher interest rates are typical for banks.

    •  Investment opportunity

The majority of SACCOs provide members with investment alternatives. Saccos make investments in assets like lands, homes, and enterprises and provide members with low-cost access to such assets.

    • Limited Liability

The only thing at risk when you join a SACCO is your funds or shares. The assets of Sacco members who were not directly involved in fraudulent behaviour or bankruptcy would not be affected.

    • Financial Education

Member education, knowledge, and training are some of the cooperative’s principles. SACCOs devote time and money to educating their members about money management and other topics that impact their financial security, including job development, housing, health, and education. By joining a SACCO, members associate with others that share the same goals of enhancing their financial status. To motivate you on your path to financial prosperity, you can also gain from hearing about other people’s successes. The SACCO you choose to join must be stable, well-run, and capable of adequately advancing your financial interests.

    • Wealth Accumulation

Every financial year, SACCOs, declare and distribute returns on members’ shares and savings in the form of dividends and interest based on the end-year results. The average dividends on the share capital of SACCOs were 10.55% in 2021, according to the 2021 Annual Statutory Report on the operations and performance of regulated SACCO societies in Kenya. SACCO savings averaged 6.83%, compared to the average interest rate on bank savings of 4.02%. From the results above, SACCOs are an excellent passive method for building wealth. As your wealth increases and your income increases, it is strongly advised to invest your yearly income and put it to good use.

    •  Shared Ownership and Governance

Being member-owned and member-governed is an essential characteristic of SACCOs. It is crucial to do this to ensure that those in charge of the societies have a sincere interest in them. Contrary to other financial institutions, SACCOs allow members to participate in significant decisions that affect how the organization operates through annual general meetings, which gives SACCO members the power to oversee the board of directors and management based on how the SACCO operates. Being close to one’s home makes SACCOs accessible to members and encourages the provision of individualized services.


Most people still do not know how to correctly organize their finances. Most people are uneducated about saving money and investing. Training in saving and investing is required in light of this. Social and economic considerations, among others, have an impact on how quickly SACCOs grow. Saccos offer farmers and business owners loans and savings options. Statistics show that a significant portion of SACCO development is due to member and public education and advising.

If you are interested in joining a SACCO, K-unity SACCO is one of the best and biggest SACCOs in Kenya. It is a first-tier SACCO that has an asset base of over KES 5.7 billion. It has 17 branches in 5 counties and a membership of over 70,000. You can open an account by clicking the following link: https://bit.ly/3WfIQ2F  Kindly call, text, or WhatsApp us at +254 707 424 774 for more information.

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