14/12/2022
EVER HEARD THE STORY OF THE TAXI DRIVER WHO ENDED UP OWNING AN ENTIRE FLEET OF TRANSPORT VEHICLES? OR THE GROCERY LADY WHO GREW FROM ONE SMALL KIOSK TO OWNING AN ENTIRE ESTATE OF RENTAL APARTMENTS?
Well, behind all those sweet stories are little-known financial institutions commonly referred to as SACCOs.
This is how SACCOs work – You become a member, set your saving goal and start saving.
Let’s say you start today and target to save Ksh.50,000 in the next 10 months. After you reach that target, your SACCO gives you a friendly loan that is as much as 3 to 4 times your savings.
So you get Ksh.200,000 which you can use to expand your business further. Easy, right?
If you are thinking of joining a Sacco, one of the first things you need to consider is a list of the best SACCOs to invest in Kenya.
There have been cases of many Kenyans losing their hard-earned money to dubious Saccos. Therefore, you need to be very careful before joining any Sacco.
SACCOs helps members pull money together by making monthly contributions. Members can then access loans at low interest rates and get dividends from the SACCO at the end of the financial year.
A friend of mine who has worked for Kenya Airways for 10 years was initially struggling to save money to buy a plot. After being initiated into Wanandege SACCO, he saved Ksh.200,000 for two years.
Later, was given a loan of Ksh.700,000. He used the loan to buy a plot in Kamulu and is now building a house. What was amazing is that the loan was attracting interest rate of 1% per month, which is so insignificant as compared to interest rates charged by local banks. Soon, he will be a proud owner of a home in Nairobi.
SACCOS also buy land and sell it cheaply to their members. This is one thing that makes many Kenyans proud. You might get a SACCO selling a plot in Kitengela to its members at Ksh.150,000 and if you move 10 meters from the location, you will be shocked to find an individual selling a plot similar to the one owned by the SACCO at Ksh.500,000.
In 2019, one of my friends joined a SACCO in Nairobi. He started buying shares worth Ksh.5,000 every month. Today, he has shares worth over Ksh.300,000 in the SACCO.
He is a happy man because each year he is assured of Christmas from the SACCO in terms of dividends. Unlike banks where shares trade at prices which ordinary Kenyan is unable to buy, shares from SACCOs are always affordable.
It’s very hard for Kenyan SACCOs to make losses. Once you have your money in a SACCO, you are assured that it’s safe and chances of making losses are minimal.
I have witnessed several banks closing down because of being declared insolvent, but never have I witnessed a SACCO in Kenya going through receivership or failing to meet members’ targets.
SACCOS like Ushuru, Stima and Harambee have grown so big that they are threatening the existence of banks in the country.
SACCOs are important because:
They encourage you to save - SACCOs require you to save consistently and this, in turn, enables you to cultivate the discipline of saving frequently.
They are a sure investment - SACCOs pay out dividends on the savings of their members. Compared to other investments, saving in a SACCO has a more guaranteed return.
Emergency loans - Some SACCOs offer developmental and school fees loans that can be processed within a day, depending on the borrower’s urgency.
You should join a SACCO because it will come in handy when you need to get a line of credit. Most importantly, when you do need this line of credit, you will have access to some of the lowest interest rates in the country.
The interest rates charged by SACCOs are usually not subject to change. In fact, a majority of SACCOs lend at 12% annually, which is below anything banks have charged even when base rates were at their lowest.
Do not wait for tomorrow, save now and try to save as much as you can in a SACCO. The benefits you will reap later in life are worth the effort it will take you today.
MFANGANO DEVELOPMENT FORUM SACCO
This is why you should consider Joining Mfangano Development Forum Sacco today.
Requirement:
1. Registration Fee Ksh. 1,000
2. Minimum monthly deposit contributions Ksh 500
3. Minimum Share capital ksh 5,000 ( Minimum of 50 shares at nominal per share of ksh 100)
Membership Benefits
1. Interest rebates on Deposits
2. Dividend return on Share Capital
3. Member of an home grown Sacco
4. Listening and Caring.
Talk to Us:
Email: [email protected]
