Saccos in Kenya


The Saccos in Kenya sub-sector  is considered the fastest growing in the cooperative movement. Almost half of the 972 additional cooperative societies and unions registered in 2011 were Saccos.

As at December 31, 2011, there were 6,902 registered Saccos, up from 6,737 in 2010, but only 3,983 were active, with 227 of them, or six per cent, offering deposit-taking services, commonly referred to as Front Office Services Activity (Fosa), an quasi banking enterprise undertaken by licensed Saccos. These societies with Fosas and the other active Saccos operate Back Office Savings Activity (Bosa).

Saccos in Kenya have rapidly grown to be the largest in Africa, accounting for 60, 64, and 63 per cent of the continent’s savings, loan and assets, respectively.

Saccos provide retail services to large numbers of members and depositors. Of Kenya’s 20 million adult population, 22.5 per cent are served by commercial banks and micro finance institutions while 17.6 per cent are served by Saccos.

Saccos in Kenya are gradually responding to the fast changes in the financial environment and are adopting new approaches to the Sacco model. Membership has for long been based on common bonds and knowledge about the borrower. This mechanism, Saccos argue, has enabled them to manage risk, enforce lending contracts and reduce the transaction costs of delivering credit.

With changes that at some stage saw use of Saccos drop from 13.1 per cent in 2006 to 9.0 per cent in 2009 because of stiff competition from banks and other financial institutions, and other factors such as declining membership because of retrenchment and deaths, Saccos were forced to come up with strategies and products to assist them cope with these challenges. Some of these strategies included changing rules of membership and coming up with a new range of products.

Types of Registered SACCOS in Kenya

Diaspora Saccos

To ensure they are felt back home, Kenyans in the diaspora have formed Saccos, through which they can invest in property and business.

Diaspora remittances are growing at a rate of 43 per cent year on year. The Diaspora Saccos intend to harness these individual small streams into a mighty river of collective power and channel them into investment projects, which can attract even higher remittances.

The Kenya USA Diaspora Sacco was launched during the 2012 Kenya Diaspora Conference — USA in Arlington, Virginia. This was the second Diaspora Sacco established after the Cooperative Development ministry registered Kenya Diaspora Sacco in April 2012.

The Sacco enables Kenyans living in the United States to access capital and fully participate in emerging markets in Kenya as Well as the opportunities in the East African Community.

The Sacco plans to launch a chapter in every state in the US to make sure every Kenyan living in the US has access to affordable credit.

Kenyans in the United Kingdom also launched a Sacco, which was the third diaspora society.

Youth Saccos in Kenya

With 73 per cent of Kenya’s population under the age of 30 and 43 per cent under the age of 15, the youth factor is an important social-political and economic factor.

The cooperative movement, therefore, has in the past tried to ensure that this populace is absorbed into the sector. The 2011 World Cooperatives Day, popularly referred to as Ushirika Day, celebrations intentionally focused on the youth, under the theme Youth, the Future of Cooperative Enterprise. There is consensus that the youth have not been keen to join the movement because they consider cooperatives as clubs for elderly people.

The Ministry of Cooperatives is working closely with the youths to ensure they provide whatever is close to their hearts.

As part of the efforts, the Cooperative Insurance Company (CIC) in partnership with the Ministry, is involved in promoting the cooperative model of enterprise to the youth, with university students a key target.

A campaign dubbed I’m a Co-operator seeks to impress upon young people the importance of cooperatives as a development tool that can effectively transform lives economically and socially.

Other ventures of interest include the introduction of boda boda businesses in which youths are encouraged to form groups through to buy motorbikes for the boda boda businesses.

Cooperative Bank is targeting the youth with special packages like investing in specific items for their groups, such as motorbikes, vehicles, computers and laptops.

Yet another area of exponential growth is the ICT sector Where

Matatu Saccos in Kenya

To bring sanity to public transport, matatu and bus operators had to organize themselves into cooperatives of companies for ease of management and enforcement of discipline.

It was mandatory for all those seeking a Transport Licensing Board (TLB) certification to be members of a Sacco or belong to a company. About 1,000 matatu Saccos and 400 companies have been registered.

Matatu operators, who constitute 80 per cent of the public transport system, are estimated to have an annual turnover of Kshs73 billion.

To its credit, the sector buys Kshs4 billion insurance premiums every year and remits Kshs1 billion taxes annually.

The Matatu Saccos have played a significant role in the growth of public transport and some have now become respected brands in the sector.

The Saccos proved to be the most viable way to manage large public transport fleets. They have also been pioneers in changing the image of public transport, which was dominated by rogue drivers and touts without regard for traffic rules.

With the expected phasing out of the 14-seater vans, cooperative societies are poised to play an even bigger role in supporting the government’s initiative.

Housing Saccos in Kenya

There are currently 440 housing cooperatives (248 active) under the umbrella of Nachu. With the development of the movement, it’s a guarantee that low income earners can access affordable and decent housing.

Cooperatives have also invested in commercial buildings countrywide.

The landscape of most urban centres is covered by cooperative owned buildings such as Harambee Plaza, Afya Centre, Hazina Towers, Kuscco Centre, Cooperative Bank House, Meru Mwalimu Plaza in Meru and Ndege Chai Plaza in Kericho.

Education Saccos in Kenya

A quarter of the nearly Kshs200 billion goes towards financing education.

Indeed, cooperatives have provided successful models to encourage savings and access affordable credit to about 95 per cent of the 278,000 teachers employed by the TSC and an equal percentage in private learning institutions.

The movement has also invested in training institutions, such as the Cooperative College of Kenya.

Various cooperative societies have directly invested in institutions of higher learning, including Bartek College (Baringo Teachers Sacco), and South Imenti Sacco. Teachers Saccos are instrumental in raising living standards for the members and providing seed money for teachers to start businesses in housing, transport, agriculture and trade.

Saccos in Kenya

Saccos in Kenya

List of Saccos in Kenya

  1. Africa Youth Trust Sacco
  2. Afya Sacco Society Ltd
  3. Asili Co-operative
  4. Balozi co-operative savings & credit society
  5. Balozi Sacco
  6. Biashara Community Sacco
  7. Biblia Sacco
  8. Bingwa Sacco
  9. Cabrosta Co-op savings & Credit Society Ltd
  10. Central Kenya Adventist Co-Op Savings $ Credit Society
  11. Chai Sacco
  12. Comoco Sacco
  13. Concode Sacco
  14. Cuew Co-op Savings & Credit Society Ltd
  15. Dhamini Co-op Savings & Credit Society Ltd
  16. East African Sacco
  17. Elimu Sacco
  18. Elyonabi Home & Office Furniture
  19. Freka Rental Sacco
  20. French Cultural & Co-operation Centre
  21. Gakurwe Sacco
  22. Githunguri Dairy Farmers Cooperative Society
  23. Githunguri Dairy Farmers Sacco
  24. Harambee Sacco
  25. Hazina Sacco
  26. Home Co-Operative & Credit Society Ltd
  27. Home Sacco
  28. Horticulture Cooperative Union Ltd (Kenya)
  29. International Federation Of Red Cross & Red Crescent Societies
  30. Jamii Sacco
  31. Jumbo Sacco
  32. Kamuthi Farmers Sacco
  33. Kanisa Co-Op Savings & Credit Society Ltd
  34. Kanisa Sacco
  35. Kencom Sacco
  36. Kenpipe Sacco Society
  37. Kentours Sacco
  38. Kenversity Sacco
  39. Kenya Bankers Sacco
  40. Kenya Rural Sacco
  41. Kenya Police Sacco
  42. Kiambu Unity Finance Co-operative Union
  43. Kiamumbi Farmers Sacco
  44. Kilimani Jua Kali Sacoo
  45. Kimisitu Sacco
  46. Kingdom Sacco
  47. Lompasago Co-op Sacco Ltd
  48. Lompasango savings and credit society
  49. Macobo Saving & Credit Society Ltd
  50. Magereza Co-Operative Savings & Credit Society Ltd
  51. Magereza Sacco
  52. Maisha Bora Sacco
  53. Mawasiliano Co-operative Sacco
  54. Mchope Sacco
  55. Mhasibu Sacco Society Ltd
  56. Microcat Autoparts & Accessories
  57. Mshamba Housing Co-Operative Society
  58. Mshamba Sacco
  59. Mwalimu Co-operative Savings Credit Society
  60. Mwalimu Sacco
  61. Mwito Sacco Society Ltd
  62. Naccico-op savings and credit society
  63. Nacico Sacco
  64. Nairobi Handicraft Industrial Co-op Society Ltd
  65. Naku Sacco Society
  66. Nassefu Sacco
  67. Nimepata Co-Operative Savings & Credit Society
  68. Nimepata Sacco
  69. Nyati Sacco
  70. P & T Employees Housing Sacco
  71. Romokia Housing Co-Operative
  72. Sauti Sacco
  73. Savings And Loan Ltd
  74. Sawa Co-operative Savings & Credit Society
  75. Sawa Sacco
  76. Sheria Sacco
  77. Shirika Sacco
  78. Shujaa Sacco Society
  79. Solid Investments Societies Ltd
  80. Stima Sacco
  81. St.Mary’s Transport Sacco
  82. Stone Bridge Multipurpose Sacco
  83. TelePost Sacco Society Ltd
  84. Tembo Sacco
  85. The Kenya Saving and Credit Co-op society
  86. Ufundi Co-Operative Sacco
  87. Ukulima Co-operative Sacco
  88. Unaitas Sacco Ltd – Kenya
  89. Uokoaji Savings and Credit Society Ltd
  90. Uzazi Bora Sacco
  91. Wanandege Sacco
  92. Waumini Sacco

In Case You Missed It
  1. Memorable Speech by Idi Amin
  2. A Good Wife’s Guide – 10 things you need to DO to be a GOOD wife.
  3. Top 20 things men should never, ever, do — Just don’t do it
  4. 20 Things Women Should Never, Ever, Do
  5. 20 Things 20 – Year-Olds Don’t Get
  6. APPLICATION FORM TO MARRY MY DAUGHTER.


About the Author

Hello, I'm Josphat Gachie and the Founder / CEO of Softkenya.com. Softkenya is Kenya's most comprehensive information website. Its 100% FREE to advertise your BUSINESS, PRODUCT or SERVICE on softkenya.com. To place a FREE Ad go to: http://softkenya.com/ads/