Saccos have become household financial institutions in the country. Famous for being owned by members, they have grown in numbers and continue to expand yearly.
Some of the reasons why most people join Saccos are for saving and access to loans purposes. In a crowded market that is full of all kinds of financial institutions, Saccos has managed to curve out a big niche and remain relevant.
Before joining a Sacco, you should ensure it is registered by Saccos Society Regulatory Authority (SASRA)
Benefits of joining a Sacco in Kenya
There are various benefits that you get from joining a Sacco. These include;
1. Helps with savings
One of the main reasons why Saccos exists is to drive savings for members. A role they continue to play as more Kenyans join. To facilitate this, members are required to make regular saving contributions with most making it monthly. For those employed, savings are deducted at the pay point.
Currently, the Sacco movement in Kenya holds 1 trillion shillings in members’ savings.
2. Access to affordable loans
Saccos loans their members affordably and conveniently. They also use the concept of guarantee which makes it easier to access loans even without security.
Accessing a loan is based on the amount of savings. Hence, the more savings you have, the higher the amount of loan you can access. Normally, you get a multiplier of 3 or 4 of your savings.
To achieve this goal, saccos has developed various loan products for members. Some of these include Asset financing, Business loans, Salary loans, and Dividend loans.
3. Payment of dividends
Each year, Saccos pays dividends to members based on their savings and business performance for the year. On average, most saccos pay dividends at 10%. However, this could either be higher or lower.
Dividends are paid in 2 categories. Those targeting share capital and member deposits are known as rebates. These are mostly paid in the first quarter of each year after the Annual General Meeting (AGM)
4. Strategic location
Most Saccos are locally based and hence they have a presence in areas where members are. This makes it possible to locate in remote areas where other financial institutions aren’t making it easier for members to access service.
5. Customized products
As saccos are made of members with similar interests such as teachers or doctors, it becomes easier for them to customize products that suit their needs. Hence, members can access relevant products.
Now that we know the benefits of joining a Sacco in Kenya, let’s look at the Top 10 best saccos in Kenya to join in 2024.
1. Tower Sacco
Tower Sacco boasts a membership exceeding 250,000 and over 20 billion shillings in asset base. This makes it among the biggest saccos in Kenya and hence part of the reason it is on this list.
The Sacco is headquartered in Ol’kalau town but has a presence in other parts of the country. It has over 25 branches and over 300 agents where you can get services. Sacco has also made a wide investment in digital banking enabling customers to access banking services conveniently. This is made possible through the presence of fully-fledged mobile banking and internet banking services.
Other than convenience to members, Sacco is also famous for paying high dividends and rebates of up to 20% and 13% respectively. A factor that has contributed to its attractiveness and hence a large member base.
The Sacco accepts members across all categories including both employees and business people. It also has a variety of loans it offers to members such as Asset finance, salary loans, and Mortgages.
2. Mwalimu Sacco
Mwalimu Sacco is the largest Sacco in the country and is headquartered in Upperhill, Nairobi at Mwalimu Towers.
Started over 30 years ago, the Sacco membership targets teachers across the country and their dependents. It has over 18 branches with a presence in strategic towns such as Nairobi, Mombasa, Kisumu, and Kakamega.
Some of the loan products offered by Sacco include Business loans and retirement loans. The loans are based on your savings and membership.
3. Stima Sacco
Although the Sacco was originally started by members in the power sector, it has since opened up to members across all sectors including the diaspora.
To join Stima Sacco, you require a registration fee of 500 shillings, a share capital of 25,000 shillings, and monthly contributions of at least 1,000 shillings per month.
The Sacco currently has 14 branches is present on major towns such as Nairobi, Eldoret, Mombasa, Nakuru, and Kisumu.
In the last financial year, Sacco paid dividends at 15% and rebates at 11% respectively. This is competitive in the market making it among the top 10 best saccos in Kenya to join in 2024.
Some of the products offered by Stima Sacco include savings, Insurance, Loan, and Investment products.
4. Harambee Sacco
Formerly targeting employees in the government sectors, the Sacco opened up in 2020 allowing members from other sectors to join.
To become a member, you need to fill out the member application form and pay the 1,000 shillings registration fee. You should buy 30,000 shillings share capital and contribute at least 300 shillings per month.
Upon becoming a member, you are eligible to enjoy Sacco products and services including savings and loan products
5. Kenya Police Sacco
As the name suggests, the Sacco was started by the members of the police service. However, it has since opened up to accommodate other Kenyans such as the business community.
The Sacco has 8 branches spread across the country in major towns such as Meru, Nyeri, Nakuru, Kisii, Mombasa, and Nairobi.
Kenya Police Sacco has various products that you enjoy as a member including loans products such as normal loans, emergency and school fees loans. You can get a loan 4 times the amount of your savings.
6. Safaricom Sacco
Although this Sacco is relatively new in the market, it has already attracted over 18,000 members and continues to grow. In 2022, the saccos asset base hit 10 billion. A fete that helped it join the big league saccos.
To become a member, you will need to pay a 1,000 shillings membership fee, make 3,000 shillings monthly contributions, and buy at least 400 shares worth 40,000 shillings as share capital.
If you want to join as a Chama, the registration fee is 2,000 shillings, and a minimum contribution of 5,000 shillings per month.
7. Kenya bankers Sacco
Formed in 1975, the Sacco was aimed at offering services to members in the financial sector. Today, Kenya Bankers Sacco has 8 branches across the country with its head office located along Ngong Road in Nairobi.
The Sacco offers various types of savings and loan products such as Children, FOSA, and Education savings products. In the loan sector, Sacco has products such as Shamba loans, Biashara loans, and share capital loans for members.
8. Hazina Sacco
Started in 1971, the Sacco currently boasts more than 19,000 members and growing. Initially, it was started as a Ministry of planning staff Sacco. However, it opened its common bond and now takes in members across the country.
To join the Sacco, you need to be a Kenyan over 18 years old, fill in the membership form, and contribute a 1,000 joining fee. You should also make a minimum monthly contribution of 1,000 shillings and buy share capital with a minimum of 16,000 shillings.
The Sacco offers various digital solutions to make your banking easier and more convenient. These include mobile banking, internet banking, and direct deposit solutions.
Some of the products available from the Sacco include Karibu and Advance loans.
9. Unaitas Sacco
Unaitas Sacco was registered in 1993 and has continued to expand to date. The Sacco offers a variety of loan products such as agribusiness, Employment, and Business loans.
On the savings side, Sacco has various accounts that you can open. These include personal accounts, Chama accounts, Joint accounts, and fixed deposit accounts.
To open a membership account, you need to visit one of the 31 branches spread across the country. You should also be at least 18 years of age and have a valid KRA pin certificate. The main office Is located at Cardinal Otunga Plaza, Kaunda Street, Nairobi.
10. Mhasibu Sacco
Started in 1986 to provide services to members of the accounting profession, the Sacco has since opened its doors to other Kenyans. It currently boasts a membership that exceeds 20,000 and over 7.5 billion in asset base.
To become a member, you need to open an account. This process requires your identity card and KRA PINs. You should also pay a joining fee of 1000 shillings.
The Sacco has various savings products such as holiday schemes, fixed deposits, and Child schemes. On the loan side, there are plenty to choose from. These include Mobi loan, Top loan, and self-guarantee loan.
Here is a breakdown of the top 10 best saccos in Kenya to join in 2024.
- Tower Sacco
- Mwalimu Sacco
- Stima Sacco
- Harambee Sacco
- Kenya Police Sacco
- Safaricom Sacco
- Kenya Bankers Sacco
- Hazina Sacco
- Unaitas Sacco
- Mhasibu Sacco
