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SACCOs See Surge in Popularity as 47% of Citizens Opt to Save Money with Cooperatives

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SACCOs have been successful in promoting financial inclusion in Kenya by providing financial services to individuals and small businesses who would otherwise have limited access to financial products from traditional banks.

They have also been able to offer competitive interest rates on savings and loans due to their community-based nature and lower overhead costs.

It’s encouraging to hear that 47 percent of Kenyans are considering putting their money in a SACCO, as this shows that there is a growing awareness and trust in the SACCO business model.

However, it’s important for individuals to do their research and carefully consider the specific SACCO they want to join, as not all SACCOs are created equal in terms of financial stability, services offered, and regulatory compliance.

Asked where they would invest their money given the options of; SACCO, Maoney Markets, Chama, and a Savings Bank Account, during an online poll that attracted hundreds of responses, 47 percent were for Saccos, 28 percent for money markets, 17 percent for a savings account, and 8 percent for a Chama.

Those interested in investing their money in a SACCO mentioned the flexibility of contributions, increase in their savings over time, annual dividends, and access to affordable loans as the main reasons they would take their money and put it in a SACCO.

In the past few days, virtually everyone in Kenya has been talking about Sacco Dividends. Saccos around the country were releasing their annual financial results and announcing dividends to their members and members could not hide their excitement.

March has indeed been a good month for most Sacco members. The Saccos injected in excess of 30 billion shillings into the financial ecosystem in march alone, due to dividend payout, and more saccos are lined up to declare dividends and interest rebates up to the end of April.

Sacco businesses have gained popularity over the years around the country as an alternative form of financial institution. They have become vehicles that not only give people alternatives to invest in but access to affordable credit too.

Stima Sacco, Kenya’s fastest-growing sacco in asset base, for instance, approved the payment of a first and final dividend of 15 percent on share capital to its members for the financial year ending December 31, 2022.

Stima Sacco members will also get interest rebate deposits at the rate of 11 percent for the period under review. The distribution brings the total payout to 3.56 billion shillings in 2022 an increase from  2.99 billion shillings in 2021.

Journalist/PR Practitioner who seeks to tell the African stories in an African way. Be it on Politics, Sports, Business, and Current News the story will be told. Twitter @kmajangah

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