This article focuses on the benefits of joining a Sacco in Kenya. Savings and Credit Co-operative Societies (Saccos) are usually formed and run by members with a common goal and vision, which is to provide financial power to its members.
Saccos mainly bring together people with similar financial goals and characteristics for a common purpose of saving and investment. Saccos in Kenya are regulated by the Sacco Societies Regulatory Authority (SASRA).
In the past, most of the Saccos such as Mwalimu Sacco, Hazina Sacco and Police Sacco restricted membership to certain groups such as police officers, teachers, civil servants… etc. However, that is no longer the case as the Saccos draw membership from everywhere as long as you meet the necessary requirements.
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There are various Saccos in Kenya that you can join and grow yourself financially. The Saccos offer a lot of benefits that no other financial institutions offer.
Here are the benefits of joining a Sacco in Kenya.
- Saccos inspire a saving culture
Most of you will agree with me that it is difficult to save especially if you don’t have a target or set goal you intend to achieve by saving. However, with a Sacco, you get the opportunity to save until you come up with something tangible to do with your savings or an investment idea.
- Limited liability
The liability of Sacco members is limited to their savings. The assets of members remain secure in case Sacco goes bankrupt.
- Saccos offer investment opportunities
Most SACCOs in Kenya encourage members to own property. They have various development projects that interested members can invest in. For example, most of the SACCOs have land, vehicles and houses which they sell to members at affordable costs.
- Access to emergency loans / Accessible loans
Saccos are the most preferred option for emergency loans over banks. They process emergency loans within a short period of time and offer favourable terms.
- Simple loan terms and conditions
Sacco members benefit from simple loan terms and conditions. They offer better interest rates and repayment options as compared to banks and other financial institutions. A Sacco member can borrow up to 3 to 4 times his/her savings. Most of the Saccos offer loans as long as you have guarantors or collateral for the loan you intend to take.
- Saccos pay a good dividend rate
Any Sacco member is entitled to dividends which are paid annually. This is because as a member, you are the co-owner of the Sacco. The dividends paid to depend on the amount of profit Sacco makes, this is from the savings of members. The more you save, the higher the dividends you get.