Best Saccos in Kenya: Registration Fees, Dividends, Factors to Consider Before Joining
What is a SACCO?
A SACCO, an abbreviation for Savings and Credit Cooperative, serves as a financial institution designed to collect funds and provide various credit solutions to its members.
SACCOs are established to assist members with akin interests in saving and accessing loans. Notably, SACCOs cater to various professions and groups, including teachers, matatu owners, farmers, bankers, business people, women, accountants, and doctors.
In Kenya, most SACCOs offer both Front Office Service Activity (FOSA) and Back Office Service Activity (BOSA) services.
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The distinction lies in FOSA offering members convenient options for savings, deposits, and cash transfers, whereas BOSA ensures savings are non-withdrawable but permits borrowing against them at competitive rates.
Why Consider Investment in a SACCO in Kenya?
Joining a SACCO presents several benefits, including:
Enhanced returns: Savings in SACCOs accumulate compound interest, with dividends disbursed annually, resulting in a considerably higher return on investment. Typically, most SACCOs distribute dividends exceeding 15% on share capital.
Cultivation of a saving ethos: SACCOs instill a culture of saving through compulsory monthly contributions. Additionally, automating savings simplifies the process, albeit with restricted withdrawal options.
Collective ownership and wealth accumulation: Participation in a SACCO grants ownership through shares, which symbolize wealth accumulation. The more shares held, the greater the wealth.
Access to credit facilities: SACCOs are renowned for providing credit facilities, allowing members to borrow with flexible repayment terms, albeit facing challenges if defaults occur.
Exposure to investment avenues: SACCOs offer diverse investment opportunities tailored to members’ needs. For instance, many invest in land and Real Estate Investment Trusts (REITs) in Kenya, while others permit individual ownership of such investments.
Longevity: Unlike informal savings groups like Chamas, SACCOs boast longevity, ensuring sustained savings and benefits unless faced with collapse.
Oversight by SASRA: The SACCO Societies Regulatory Authority (SASRA) plays a crucial role in vetting SACCOs, guiding members toward secure options. Engaging with a SASRA-certified SACCO minimizes the risk of financial loss or exploitation. Members can lodge complaints with SASRA if necessary.
Kenya boasts numerous Savings and Credit Cooperative Organizations (SACCOs) dedicated to pooling together individuals with similar financial goals. While many exist, not all adequately protect their members’ interests.
Stima SACCO
Reportedly, Stima SACCO emerges as one of the leading nationwide entity, boasting a substantial asset base of approximately Kshs. 53.78 billion. It extends an array of financial services including development loans, asset financing, and mortgages across various branches in Nairobi, Kisumu, Eldoret, Nakuru, Embu, and Mombasa.
Stima SACCO charges a registration fee of Ksh 500 and requires a minimum monthly contribution of Ksh 1,000. Members share a capital of Ksh 25,000 with a maximum loan multiple of 5. The SACCO offers a dividend of 14% on share capital and provides an 11% interest on member deposits.
Mwalimu National SACCO
Mwalimu National SACCO, serving teachers across Kenya, holds the title of the continent’s largest African SACCO. Exclusive to educators and certain affiliated personnel, it offers diverse services ranging from business loans to welfare programs, backed by an asset base of 64.06 billion.
Mwalimu SACCO charges a registration fee of Ksh 2,000 and requires a minimum monthly contribution of Ksh 2,000. Members share a capital of Ksh 30,000 with a maximum loan multiple of 6. The SACCO offers a dividend of 13% on share capital and provides a 9.3% interest on member deposits.
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Nyati SACCO
Nyati SACCO distinguishes itself by offering an extensive range of financial services, notably its status as the highest dividend-paying SACCO in Kenya, boasting a remarkable 21% dividend payout rate on its share capital.
Amica SACCO
Established in 1966 by coffee farmers in Muranga, Amica SACCO, now known as Amica Savings & Credit, welcomes members from all sectors. With an asset base of 6.45 billion, it provides various banking channels and loans at competitive rates, including the popular “Investa” scheme.
Nyati SACCO
Nyati SACCO charges a registration fee of Ksh 500 and requires a minimum monthly contribution of Ksh 1,200. Members share a capital of Ksh 9,000, with a maximum loan multiple of 3. The SACCO offers a dividend of 21% on share capital and provides an 11% interest on member deposits.
Afya SACCO
Afya SACCO, with an asset base of 20.94 billion, stands as one of Kenya’s largest deposit-taking SACCOs, embodying democratic principles and member-driven financial strategies.
Ports SACCO
Ports SACCO, a tier 1 licensed deposit-taking entity, prides itself on its diverse membership base and its reputation for high dividend payouts, currently at 20% on share capital.
Trans Nation SACCO
Trans Nation SACCO, known for its compliance with the Sacco Societies Regulatory Authority (SASRA), counts among the best performing and highest dividend-paying SACCOs, catering to over 37,000 members.
TransNation SACCO requires a registration fee of Ksh 500 and a minimum monthly contribution of Ksh 400. Members share a capital of Ksh 10,000 with a maximum loan multiple of 3. The SACCO offers a dividend of 18% on share capital and provides a 13.1% interest on member deposits.
Harambee SACCO
Harambee SACCO, with an asset base of 37.01 billion, primarily serves government employees and is open to members of the private sector, affirming its commitment to broad inclusivity.
Magadi SACCO
Magadi SACCO, established in 1977, welcomes members from all backgrounds and offers a wide array of products, boasting a 20% dividend payout rate on share capital.
The SACCO has a registration fee of Ksh 2,000 and a minimum monthly contribution is not specified. Members share a capital of Ksh 20,000 with a maximum loan multiple of 3. The SACCO offers a dividend of 20% on share capital and provides a 14% interest on member deposits.
Hazina SACCO
Hazina SACCO, with assets totaling Kshs 12.76 billion, extends membership to employees of national and county governments, parastatals, and private organizations, emphasizing attractive interest rates and dividend returns.
The SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 1,000. Members share a capital of Ksh 16,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 18% on share capital and provides a 10.6% interest on member deposits.
Sheria SACCO
Sheria SACCO, established in 1972, caters to various professionals and businesspersons, maintaining a significant dividend payout rate of 16%.
Members share a capital of Ksh 20,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 16% on share capital and provides a 9% interest on member deposits.
Sheria SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 2,000.
Kenya Police SACCO
Kenya Police SACCO, founded in 1973, provides affordable credit facilities to its members, including serving and retired police officers, civil servants, and employees from corporate entities, with an asset base of 48.98 billion and a loan portfolio of Kshs. 26 billion.
Kenya Police SACCO has a registration fee of Ksh 2,000 and requires a minimum monthly contribution of Ksh 1,000. Members share a capital of Ksh 20,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 17% on share capital and provides a 10.8% interest on member deposits.
Unaitas SACCO
Unaitas SACCO, licensed under the Sacco Societies Act, 2012, boasts an asset base of 20.40 billion, offering a range of saving and loan products designed to meet members’ diverse needs.
Imarisha SACCO
Imarisha SACCO, known for its exceptional customer service and technological innovations, operates across 14 units nationwide with an asset base of 19.82 billion.
Members share a capital of Ksh 30,000 with a maximum loan multiple of 5. The SACCO offers a dividend of 13.9% on share capital and provides an 11.2% interest on member deposits.
Imarisha SACCO charges a registration fee of Ksh 360 and requires a minimum monthly contribution of Ksh 1,000.
Tower SACCO
Tower SACCO, with over 250,000 members and an asset base of 19.57 billion, provides a comprehensive suite of financial products and services. The SACCO offers a dividend of 20% on share capital and provides a 13% interest on member deposits.
Tower SACCO requires a registration fee of Ksh 500 and a minimum monthly contribution of Ksh 500. Members share a capital of Ksh 10,000 with a maximum loan multiple of 3.
Ukulima SACCO
Ukulima SACCO, with an asset base of 14.66 billion, stands out for its impactful lending options and extensive branch network.
Invest & Grow SACCO (IG Sacco)
Invest & Grow SACCO (IG Sacco), boasting an asset base of 12.96 billion, is lauded for its management and high dividend payouts, currently at 17% on share capital.
Ollin SACCO
Ollin SACCO, headquartered in Kerugoya Town, offers affordable financial services and stands out with a dividend payout rate of 17.5%.
Bandari SACCO
Bandari SACCO, with an asset base of 12.01 billion and over 18,000 members, focuses on promoting thrift and financial strength among its members. The SACCO offers a dividend of 18% on share capital and provides an 11.5% interest on member deposits.
Bandari SACCO has a registration fee of Ksh 1,000 and a minimum monthly contribution of Ksh 1,500. Members share a capital of Ksh 10,500; however, the maximum loan multiple is not specified.
Mafanikio SACCO
Mafanikio SACCO, complying with SASRA regulations, prioritizes financial empowerment through quality services, maintaining an 18% dividend payout rate.
The SACCO’s registration fee, minimum monthly contribution, share on capital, and max loan multiple are not specified. However, the SACCO offers an 18% dividend on share capital and provides an 11% interest on member deposits.
Mombasa Port SACCO
Mombasa Port SACCO charges a registration fee of Ksh 500 and requires a minimum monthly contribution of Ksh 1,000. Members share a capital of Ksh 40,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 20% on share capital and provides a 12.5% interest on member deposits.
Open to a wide array of entities including individuals, businesses, cooperatives, Chamas, self-help groups, and companies, Mombasa Port SACCO provides flexible membership options.
Biashara SACCO
Biashara SACCO charges a registration fee of Ksh 2,000 and requires a minimum monthly contribution of Ksh 2,500. Members share a capital of Ksh 50,000 with a maximum loan multiple of 5. The SACCO offers a dividend of 18% on share capital and provides a 13% interest on member deposits.
Additionally, the SACCO charges development and maintenance fees.
Unison SACCO
Unison SACCO’s registration fee is not specified. It requires a minimum monthly contribution of Ksh 2,000. Members share a capital of Ksh 1,000 with a maximum loan multiple of 5. The SACCO offers a dividend of 16% on share capital and provides a 12.5% interest on member deposits.
Nation SACCO
Nation SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 2,000. Members share a capital of Ksh 10,000 with a maximum loan multiple of 2. The SACCO offers a dividend of 15% on share capital and provides a 9% interest on member deposits.
Kimisitu SACCO
Kimisitu SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 2,000. Members share a capital of Ksh 30,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 15% on share capital and provides an 8.5% interest on member deposits.
Founded in 1985, Kimisitu SACCO boasts over 10,000 active members and offers development loans based on deposits.
Imarika SACCO
Imarika SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 1,000. Members share a capital of Ksh 30,000 with a maximum loan multiple of 2. The SACCO offers a dividend of 14% on share capital and provides an 8% interest on member deposits.
Safaricom SACCO
Safaricom SACCO charges a registration fee of Ksh 1,000 and requires a minimum monthly contribution of Ksh 3,000. Members share a capital of Ksh 40,000 with a maximum loan multiple of 3. The SACCO offers a dividend of 13% on share capital and provides an 8.2% interest on member deposits.
Waumini SACCO
Waumini SACCO charges a registration fee of Ksh 500 and requires a minimum monthly contribution of Ksh 300. Members share a capital of Ksh 15,000 with a maximum loan multiple of 4. The SACCO offers a dividend of 19.25% on share capital.
How to Select the Best SACCOs in Kenya
In Kenya, the landscape of SACCOs is vast, encompassing both reputable institutions and those best avoided due to various concerns, including regulatory status and operational integrity.
When considering investing in a SACCO, several crucial factors merit attention:
SASRA Approval:
It is paramount to prioritize SACCOs approved by the SACCO Societies Regulatory Authority (SASRA). This endorsement ensures protection against potential exploitation and safeguards against investment losses. In the event of issues, SASRA serves as a recourse for grievance redressal, offering a layer of security for investors.
Moreover, SASRA’s oversight extends to identifying SACCOs that have ceased operations in Kenya, such as the Kiambu Hustlers SACCO, Nitunze, and Moi University SACCO, enabling informed decision-making regarding potential investments.
Membership Requirements:
Aligning with a SACCO whose membership shares similar interests enhances the overall experience. For instance, opting for a business-focused SACCO suits entrepreneurs, while agriculturalists may find a farmer-centric SACCO more beneficial. Additionally, assessing registration prerequisites, including joining fees and minimum contributions, is essential for prospective members.
Dividend Payouts:
A key incentive for SACCO participation lies in dividend payouts, typically calculated as a percentage of members’ savings. In Kenya, SACCOs commonly offer an average dividend rate of 10%, with higher rates translating to increased earnings potential for investors.
Share Capital:
Share capital represents the stake enabling SACCO members to claim equity ownership and receive annual dividends. While non-withdrawable, it holds significance during membership selection, necessitating careful consideration.
Product Accessibility:
SACCO appeal often hinges on the accessibility of products and services, encompassing credit facilities, loans, and savings options. Tailoring investments to specific needs, such as land acquisition, may lead investors to SACCOs like Kimisitu SACCO, Stima SACCO, Kenya Police SACCO, Afya SACCO, or KMA SACCO.
Customer Reviews and Referrals:
Given prevalent concerns regarding SACCO integrity and deregistration instances, leveraging customer feedback and referrals proves invaluable in discerning reputable institutions from less desirable alternatives.
SACCO Reputation:
Reputation serves as a pivotal indicator of a SACCO’s standing within the market. Prioritizing well-established SACCOs with proven track records enhances investor confidence and mitigates associated risks.
Technology Integration:
Embracing technological advancements, such as mobile and internet banking solutions, enhances convenience and accessibility for SACCO members. Features like ATMs further streamline transactional processes, warranting consideration during selection.
Payment Tenure:
SACCOs offer distinct advantages, including extended loan repayment periods compared to traditional lenders. Understanding each SACCO’s payment tenure policies is essential for informed borrowing decisions.
Customer Service:
Prompt and efficient customer support underscores a SACCO’s commitment to member satisfaction. Evaluating customer service quality through testimonials and reviews aids in identifying SACCOs prioritizing client needs.
Location:
Proximity to SACCO branches facilitates ease of access for members, particularly concerning in-person transactions like loan applications and withdrawals. Opting for a local SACCO aligns with convenience and accessibility preferences.
Exiting Policy:
Anticipating the eventual need to terminate SACCO membership underscores the importance of comprehending exit policies in advance. Understanding the implications for share capital upon opting out ensures informed decision-making throughout the investment journey.
Best Saccos in Kenya: Registration Fees, Dividends, Factors to Consider Before Joining
