SACCOS in Kenya
The Sacco industry is part of the cooperative sector in Kenya, which has impacted on lives of many disadvantaged Kenyans over the years. The sector may be categorized into ﬁnancial and non-ﬁnancial cooperatives. Non-ﬁnancial cooperatives deal with the marketing of members’ produce and services such as dairy, livestock coffee, tea, handicrafts and many more similar cooperatives. On the other hand ﬁnancial cooperatives comprise Saccos, housing and investment cooperatives
The Sacco sub sector can be described as two-tiered given the range of ﬁnancial services to members and regulatory regime. The traditional Savings and Credit Cooperative Societies (Saccos), described in law as Non-Deposit taking Saccos provide a limited range of savings and credit products, are registered and supervised under the Cooperative Services Act, CAP 490. The Deposit Taking Saccos (DTS) besides the basic savings and credit products, also provide basic ‘banking’ services (demand deposits, payments services and channels such as quasi banking services commonly known a ATMs), FOSA and are licensed and supervised under the Sacco Societies Act of, 2008. The general trend is that Saccos start as non-deposit taking Sacco business and grow to deposit taking Sacco business to expand the range of ﬁnancial services to members.
By December 2013 there were over 6,000 registered non-deposit taking Saccos in Kenya, 1,995 of which were active. Active in this context means the Saccos that ﬁled their audited ﬁnancial statements with the Commissioner for Cooperative Development as a legal requirement.
By close of 2013, there were 215 deposit taking Saccos out of which one hundred and thirty-ﬁve (135) were licensed by SASRA. The remaining 80 Saccos were still working to satisfy the licensing requirements as they have up to june l7th 2014 to comply or cease deposit taking Sacco business. The 215 DTS account for 78% of the total assets and deposits of the entire Sacco sub-sector. Further, they command 82% of membership in the Sacco industry.
About SACCOS in Kenya
Saccos in Kenya – What is a SACCO?
SACCO stands for Savings and Credit Cooperative which is a special type of co-operative offering ﬁnancial services with major focus on mobilization of funds and provision of affordable credit to its members who are both the owners and users.
Saccos in Kenya – Why do we have SACCOS?
The primary purpose of the SACCO is to encourage savings among members from which they can borrow at affordable terms decided bythemselves collectively orthroughthe 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 outto members as dividends and interest based on their shares or deposits.
Saccos in Kenya – What is a FOSA?
A: 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.
Saccos in Kenya – 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.
Saccos in Kenya – What is SASRA and what is its role?
SASRA stands for the SACCO Societies Regulatory Authority. lt is an organisation started by the government to ensure safety of members’ deposits in SACCOs operating FOSA. SASRA licenses and supervises the SACCOs operating FOSA. Any Sacco intending to start a FOSA must be licensed by SASRA before operations.
Saccos in Kenya – Who has given SASRA authority to supervise deposit-taking (FOSA) SACCOS?
SASRA was started by the government in accordance with the new SACCO law (Sacco Societies Act, 2008) to license, regulate and supervise deposit-taking (FOSA) SACCOs.
Saccos in Kenya – When did the new SACCO law start?
The new SACCO law (Sacco Societies act 2008) was operationalized on 26th September 2009
Saccos in Kenya – Can SASRA stop a SACCO from failing?
SASRA’s responsibility is to try to prevent failure by ensuring SACCOs comply with standards set in the new law to ensure they remain in operation. This is done through carrying out inspection of the SACCO both from SASRA offices and at the SACCOs to see if there are signs of possiblefailure.
Saccos in Kenya – Which SACCOS should apply for licensing?
A: Any SACCO Societies with a FOSA or those planning to operate a FOSA have to apply for a license. A SACCO should obtain licenses for its head oiﬁce and each oithe branches (FOSAs).
A SACCO license is valid for one calendar year ending 3lst December and is regardless of date of licensing. A licensed SACCO is required to apply for renewal of a license at least ninety (90) days before the expiry of a license which would be by end of September of each year.
Saccos in Kenya – What happens if a Sacco starts operating a FOSA without a license or does not renew its License(s)?
lf this happened SASRA would be forced to close the FOSA and charge the SAC(Os ofﬁcers responsible as operating a FOSA without a license is an offence.
Saccos in Kenya – What happens to a Sacco that applies and does not meet licensing requirements?
Upon application for a license, SASRA shall advise each SACCO accordingly.
Saccos in Kenya – I have a complaint about my SACCO. Can SASRA help me?
Yes, SASRA can assist in matters pertaining to regulatory or criminal wrong doing by the Saccos or its board ofdirectorsand staff. lfyour complaint pertains to a regulatory or criminal matter, you can submit your complaint with our ofﬁce. However, the new Sacco law has not addressed issues to do with individual share refund issues, member and SACCO contractual agreements, any legal issue that involves an individual member and his/her SACCO are can be guided by the Sacco by-laws.
Saccos in Kenya – How do I know whether my Sacco is licensed by SASRA?
All the licensed Saccos are gazzetted in the Kenya gazette in addition, SASRA publishes all licensed SACCO societies in the leading daily newspaper every beginning of the year. This list is also available in SASRA website, www.sasra.go.ke. Finally, licensing is
such an important legal issue that the Board of your SACCO will
always inform the members through the AGM or ADM.
Types of Registered SACCOS in Kenya
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.
Saccos in Kenya – Youth Saccos
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
Saccos in Kenya – Matatu Saccos
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.
Saccos in Kenya – Housing Saccos
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.
Saccos in Kenya – Education Saccos
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.
Best Saccos in Kenya
List of top 100 best Saccos in Kenya by membership and asset base
- Mwalimu national
- Kenya police
- United nations
- M etropolitan
- Kenya bankers
- Gusii mwalimu
- Kakamega teachers
- Nyeri teachers
- Imari ka
- Kitui teachers
- Masaku teachers
- Ndege chai
- Mombasa port
- Tharaka nithi teachers
- Asili cooperative
- Tai fa
- M u rata
- Kenya highlands
- Maisha bora
- Moi university
- Laikipia teachers
- Shirika sacco
- Wake nya pamoja
- Wareng teachers
- Nawi ri
- Wanan chi
- Taita taveta teach ers
- Simba chai
- Ukristo na ufan isi
- Ke nya can n ers
- Meru south farmers
- Marakwet teachers
- Kapenguria teachers
- Nandi teachers
- Re li
- Mwen diwega
- Kwale teachers
- Githunguri dairy
- Busia teso teachers
- Narok teachers
- Dai ma
- Mombasa teachers
- Keiyo teachers
- Universal traders
List of Saccos in Kenya
- Africa Youth Trust Sacco
- Afya Sacco Society Ltd
- Asili Co-operative
- Balozi co-operative savings & credit society
- Balozi Sacco
- Biashara Community Sacco
- Biblia Sacco
- Bingwa Sacco
- Cabrosta Co-op savings & Credit Society Ltd
- Central Kenya Adventist Co-Op Savings $ Credit Society
- Chai Sacco
- Comoco Sacco
- Concode Sacco
- Cuew Co-op Savings & Credit Society Ltd
- Dhamini Co-op Savings & Credit Society Ltd
- East African Sacco
- Elimu Sacco
- Elyonabi Home & Office Furniture
- Freka Rental Sacco
- French Cultural & Co-operation Centre
- Gakurwe Sacco
- Githunguri Dairy Farmers Cooperative Society
- Githunguri Dairy Farmers Sacco
- Harambee Sacco
- Hazina Sacco
- Home Co-Operative & Credit Society Ltd
- Home Sacco
- Horticulture Cooperative Union Ltd (Kenya)
- International Federation Of Red Cross & Red Crescent Societies
- Jamii Sacco
- Jumbo Sacco
- Kamuthi Farmers Sacco
- Kanisa Co-Op Savings & Credit Society Ltd
- Kanisa Sacco
- Kencom Sacco
- Kenpipe Sacco Society
- Kentours Sacco
- Kenversity Sacco
- Kenya Bankers Sacco
- Kenya Rural Sacco
- Kenya Police Sacco
- Kiambu Unity Finance Co-operative Union
- Kiamumbi Farmers Sacco
- Kilimani Jua Kali Sacoo
- Kimisitu Sacco
- Kingdom Sacco
- Lompasago Co-op Sacco Ltd
- Lompasango savings and credit society
- Macobo Saving & Credit Society Ltd
- Magereza Co-Operative Savings & Credit Society Ltd
- Magereza Sacco
- Maisha Bora Sacco
- Mawasiliano Co-operative Sacco
- Mchope Sacco
- Mhasibu Sacco Society Ltd
- Microcat Autoparts & Accessories
- Mshamba Housing Co-Operative Society
- Mshamba Sacco
- Mwalimu Co-operative Savings Credit Society
- Mwalimu Sacco
- Mwito Sacco Society Ltd
- Naccico-op savings and credit society
- Nacico Sacco
- Nairobi Handicraft Industrial Co-op Society Ltd
- Naku Sacco Society
- Nassefu Sacco
- Nimepata Co-Operative Savings & Credit Society
- Nimepata Sacco
- Nyati Sacco
- P & T Employees Housing Sacco
- Romokia Housing Co-Operative
- Sauti Sacco
- Savings And Loan Ltd
- Sawa Co-operative Savings & Credit Society
- Sawa Sacco
- Sheria Sacco
- Shirika Sacco
- Shujaa Sacco Society
- Solid Investments Societies Ltd
- Stima Sacco
- St.Mary’s Transport Sacco
- Stone Bridge Multipurpose Sacco
- TelePost Sacco Society Ltd
- Tembo Sacco
- The Kenya Saving and Credit Co-op society
- Ufundi Co-Operative Sacco
- Ukulima Co-operative Sacco
- Unaitas Sacco Ltd – Kenya
- Uokoaji Savings and Credit Society Ltd
- Uzazi Bora Sacco
- Wanandege Sacco
- Waumini Sacco