Savings and Credit Cooperative Organizations (SACCOs) have been a vital part of Kenyan communities since the early 1900s. Many of us remember how our parents joined local SACCOs to save money and access affordable credit. These member-owned cooperatives offer a range of financial services, including savings, loans, and investment opportunities.
SACCOs are unique because they are owned and managed by their members, which promotes a culture of thrift and provides affordable credit options. They serve various segments of the population, such as teachers, entrepreneurs, and professionals, making financial services accessible to many.
In Kenya, SACCOs are regulated by the Sacco Societies Regulatory Authority (SASRA), ensuring transparency and stability in their operations. This regulation helps maintain trust and confidence among members.
Benefits Of Joining A SACCO in Kenya
Since their genesis in the 1960s, SACCOs have grown, and currently, there are around 5,000 SACCOs with an active membership of over 5 million Kenyans.
Joining a SACCO in Kenya offers numerous advantages:
- Access to Affordable Credit: SACCOs provide members with loans at lower interest rates compared to traditional banks.
- High Returns on Savings: Members often receive better interest rates on their savings.
- Ownership through Shares: Members become part-owners of the SACCO, giving them a stake in its success.
- Encouragement of Self-help and Mutual Responsibility: SACCOs promote a culture of saving and financial responsibility among members.
- Prioritization of Member Benefits and Community Involvement: SACCOs focus on the welfare of their members and often invest in community projects.
- Democratic Governance: Members have a say in the running of the SACCO, with equal voting rights.
With the overwhelming number of SACCOs, it can be challenging for an individual to decide which SACCO to invest in. Below, I will discuss the top 5 SACCOs dominating the Kenyan market.
Comparison of Top SACCOs in Kenya
Compare the best SACCOs in Kenya based on membership fees, minimum savings, loan interest rates, and mobile banking features:
SACCO Name | Membership Fees | Minimum Savings | Loan Interest Rates | Mobile Banking Features |
---|---|---|---|---|
Mwalimu SACCO | KES 1,000 | KES 500 per month | 12% p.a. | Loan applications, savings management, transaction alerts |
Stima SACCO | KES 1,200 | KES 600 per month | 11% p.a. | Loan applications, savings management, transaction alerts, utility bill payments |
Imarika SACCO | KES 1,500 | KES 700 per month | 10.5% p.a. | Loan applications, savings management, transaction alerts, airtime purchase |
Harambee SACCO | KES 1,100 | KES 550 per month | 12.5% p.a. | Loan applications, savings management, transaction alerts |
Kenya Police SACCO | KES 1,300 | KES 600 per month | 11.5% p.a. | Loan applications, savings management, transaction alerts, fund transfers |
1. Mwalimu SACCO
Mwalimu SACCO, founded in 1975, is currently a leading savings choice for many teachers in Kenya. It is among the best-performing SACCOs due to its strong management and strict regulation.
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Membership is open to teachers, staff of educational institutions, and their family members who can manage the minimum savings of KES 100,000 for ordinary shares.
Features of Mwalimu SACCO
- Competitive interest rates on savings
- A wide range of loan products, including mortgages
- A user-friendly mobile banking platform
- Widely accessible thanks to its over 100 branches countrywide
- Often pays competitive dividends to members
Mwalimu SACCO benefits include:
- Competitive interest rates on savings
- Diverse loan products, including mortgage options
- Easily accessible
2. Stima SACCO
Stima SACCOdates back to 1974, when it was set up to assist the East African Power and Lighting Company. The SACCO of late has grown and is now one of the largest SACCO’s in Kenya.
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As of late, the SACCO has opened its membership to other members of the public, and currently it has more than 18000 members.
Stima SACCO features include:
- Competitive interest rates
- Specialized loan products for energy-related projects
- Convenient mobile banking options
- Top-notch customer service
- It offers low-premium insurance products
The above features are good,, hence making Stima one of SACCO’s worth investing in. Stima Sacco has branches across the country, making it accessible to members in different regions.
3. Imarika SACCO
Imarika Sacco is a financial cooperative in the coastal region of Kenya. It was founded in 1974 as Malindi Teachers Sacco by a group of primary school teachers.
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Initially, it had a membership of 100 members, but because of its services and growth in the SACCO, currently it offers services to 140,000 members.
The SACCO was rebranded in 2013 to its current name, Imarika.
Imarika SACCO features include:
- Attractive interest rates on loans and savings
- Various affordable loan products
- Accessible mobile banking solutions.
- It offers asset financing options
Imarika Sacco is available in various counties along the Kenyan coast, including Mombasa, Kwale, and Tana River, with branches in Kilifi town, Malindi, Mtwapa, and other locations.
They offer multiple financial products; therefore, you should check on them and, of course, invest if you are fully aware of how the company works.
4. Harambee SACCO
Harambee SACCO was founded in 1970 as a merry-go-round group.
![The Top 5 Saccos Dominating The Kenyan Market Saccos In Kenya](https://wonusu.com/cdn-cgi/image/width=832,height=414,fit=crop,quality=70,format=auto,onerror=redirect,metadata=none/wp-content/uploads/2024/05/Harambee-SACCO.png)
The SACCO has, of late, grown enormously, attracting a large number of investors.
Harambee SACCO features include:
- Competitive interest rates
- Diverse financial products
- Reliable mobile banking services
- Management expenses are low, explaining the better returns for members
- It is open to a wide range of employers.
You should consider joining Harambee SACCO because it is not that expensive. With a minimum savings of KES 100 and a minimum share of KES 5,000, you are a member.
5. Kenya Police SACCO
The Kenya National Police DT SACCO is a financial cooperative society that serves members of the Kenya National Police Service. Since its registration in 1972, the SACCO has since grown rapidly, with a current membership of more than 75, 000 members.
![The Top 5 Saccos Dominating The Kenyan Market Saccos In Kenya](https://wonusu.com/cdn-cgi/image/width=1204,height=895,fit=crop,quality=70,format=auto,onerror=redirect,metadata=none/wp-content/uploads/2024/05/Kenya-Police-SACCO-1024x761.png)
Kenya Police SACCO offers multiple financial products to active and retired police officers.
The financial products include:
- Credit Products
- Savings Products
- Makao Loan
- M-TAWI
The Kenya Police SACCO notable features include:
- Multiple financial products
- Favorable interest rates on loans
- High annual dividends and interest on deposits.
- Best management
- Active participation in corporate social responsibility (CSR) initiatives, such as tree planting
To wrap this up, SACCOs can change over time. In the future, other SACCOs might improve their services and join the best five. The best SACCO today might not hold that position, and others could move up.
Therefore, don’t rely only on this information to decide which SACCO to join. Visit the official website or a branch of the SACCO you’re interested in and gather the necessary information to help with your decision. You can also consult a qualified financial advisor for better investment advice.