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 have been the core drivers behind employment. They play an important role in the socio-economic development of society, supporting direct community development, and efforts through driving community social services, improving the general well being of the society.” Said Edith Tusuubira, Executive Director, Uganda Microfinance Regulatory Authority (UMRA).
“We want to emphasise digitalisation for SACCOs, this will improve transparency for the SACCOs, allowing confidence from members, By nature, SACCOs create an entry point for public services such as education. Digital means can play a pivotal role in ensuring the need for digital skills is bridged.” she continued.
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.