Benefits and Considerations for Opening a Sacco Account in Kenya
Saccos (Savings and Credit Cooperative Societies) are crucial players in Kenya’s financial sector, offering affordable credit and promoting savings. They provide several key benefits, such as:
- Savings Enabler – Saccos encourage members to save regularly, often offering dividends based on savings.
- Affordable Loans – Members can access loans at lower interest rates than banks, usually as a multiplier of their savings.
- Dividend Payments – Saccos pay dividends on savings, with a tax advantage of 5%, and offer rebates and dividends to members.
- Specialized Products and Services – Saccos cater to specific industries (e.g., teachers, doctors) with tailored products.
- Management Control – Members elect the leadership and have the right to change it if necessary.
- Bigger Loan Amounts – Loans are based on savings and can go up to three or four times the savings amount.
- Investment Opportunities – Saccos allow collective investment in ventures like land purchases.
- Flexible Collateral – Loans can be secured with the help of guarantors, making it accessible even without traditional collateral.
When choosing a Sacco, consider factors like type (aligned with your interests), leadership, asset base, interest rates, and regulation by SASRA to ensure security and quality service.
Saccos are an excellent choice for individuals and businesses looking for affordable credit, savings benefits, and specialized services!
