What Are SACCOs?
SACCOs are democratic financial cooperatives owned and controlled by their members. Unlike banks, profits are reinvested into the community or distributed as dividends to members. To join, individuals must share a common bond—a profession, geography, or organization—which fosters trust and accountability.
Key Benefits of SACCOs
- Financial Inclusion : SACCOs serve people overlooked by traditional banks, including rural populations and informal sector workers.
- Affordable Loans : Lower interest rates on loans compared to commercial banks, thanks to pooled member savings.
- Higher Savings Returns : Competitive dividends on savings, encouraging long-term financial discipline.
- Community Empowerment : Decisions prioritize member welfare over profit maximization.
- Financial Education : Many SACCOs offer workshops on budgeting, investing, and entrepreneurship.