What is a SACCO?

SACCO stands for Savings and Credit Cooperative which is a special type of co-operative offering financial services with a significant focus on mobilisation of funds and provision of affordable credit to its members who are both the owners and users.

Saccos in Kenya may be categorized into financial and non-financial cooperatives.

Non-financial cooperatives deal with the marketing of members’ products and services such as dairy, livestock coffee, tea, handicrafts and much more similar cooperatives. On the other hand, financial cooperatives comprise Saccos, housing, and investment cooperatives

Why do we have SACCOS?

The primary purpose of a SACCO is to encourage savings among members from which they can borrow at affordable terms decided by themselves collectively or through the elected directors. Other financial services SACCOs offer include ATM, Mobile money transfer, and custody of valuable documents.

The SACCO generates income by providing these services which it uses to meet the related costs. Any income that remains after these costs is paid out to members as dividends and interest based on their shares or deposits.

What is FOSA?

FOSA stands for Front Office Services Activities and refers to the ‘banking’ like services provided by SACCOs. Through the FOSA, members of the SACCO can easily access services including cash withdrawals over the counter, ATM or mobile phone.

How does a SACCO operate?

SACCOs are managed by staff employed by the Board on behalf of the members and the Chief Executive Ofificer is responsible for the day-to-day running of the SACCO business.

The Board reports to the members on the management of the SACCO at least once a year during the annual general meeting (AGM) or annual delegates meeting (ADM).

During the AGM or ADM, the members also get a chance to assess the performance of a Sacco and make decisions concerning their SACCO.

What is a common bond?

The common bond is what unites all the members of a SACCO. All members share this in common. The members decide what unites them, this could be their occupation like farming, church, employment or where they live.

Best Investment Saccos in Kenya

1. Stima Sacco 

2. Harambee Sacco 

3. United Nations Sacco

4. Bankers Sacco 

5. Kenya Police Sacco 

6.United Women Sacco

7. Kenya Medical Association Sacco

8.Hazina Sacco Society

9. Mentor Sacco Society

10.Mwalimu National Sacco


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