In the recent past, Saccos have risen from being rural-based financial institutions to organizations with loan books translating into billions of shillings. Saccos have played an important role in uplifting lives in the community through financial inclusion.
Their existence cannot be pointed to development, but they exist as a result of robust economic growth opportunities like an informed youth population and flexible laws, easing the admission of members to societies.
The Sacco system is believed to grow faster in the next 5-10 years. The vision 2030 blue print in Kenya recognizes Sacco societies as important players in deepening financial access to mobilize savings for investments in enterprises and personal development.
The Sacco business, like the banking business thrives on trust and confidence of the depositors and investors. The growth of Saccos shows how important they are in providing affordable financial services to Kenyans. Regardless of Kenya’s economic status, Saccos have made access to savings and credit easier, for the middle and low income segment for both house hold and enterprise development.
Saccos in the country have accumulated 35% of the countries national savings, clearly the need more recognition for the role they play in Kenya.
Sasra (Societies Regulatory Authority) is a statutory body by the government formed in 2009 through the societies Act (CAP 490), and has played a vital role in licensing, regulating, and supervising deposit taking microfinance institutions. The existence of Saccos has been made possible by cheap loans it offers to members, for instance a small scale farmer is able to educate his children and invest on new farming techniques to improve their lives.
Saccos have helped members save and borrow in turn, therefore empowering their social economic stand. From farmers, employees to the Kenyans living in diaspora they are now able to be part of this organization. The transport sector also joined the band wagon by registering their own societies.