Co-operative Bank: Sacco Banking Changing the Lives of Kenyans

By Amina Faki

The Co-operative Bank of Kenya is one of the world-renowned banks with numerous services. Banking has been made even easier with the community outreach products that the bank offers to its consumers.

The bank doesn’t stop with the mobile, ATM and online banking; it has initiated services and products that touch the lives of every Kenyan individual in disregard of their social and financial status.

Sacco banking is a product that touches individual lives and that of the community at large. The Sacco banking is currently one of the most used forms of banking in the country. The following are some of the products and services that associate with Sacco banking;

Over Draft is provided for short term advances to members, to finance working capital needs for the SACCO, or for SACCO operations to bridge the gap in case of checking off remittance delays.

Member’s Jijenge Loan; for on-lending to members, for development. With this kind of product, the members of a Sacco are able to get low-interest loans used for development purposes.

Education Saving Scheme (ESS); this is a product tailored for Sacco’s (Not Housing Societies or FCS). Under this scheme, the Sacco borrows against their ESS deposits for purpose of meeting their members’ school fees needs. The Society can save in ESS Standard Collateral account or ESS plus collateral account and can either borrow ESS Standard loan or ESS plus loan

Working Capital Loan; this is a flexible facility which may be used for on-lending to members for short term, medium term or long term.
Also to finance purchase of land or construction or to meet other working capital needs

Reserve Deposit Account; this is an account that provides Co-operative Societies with avenue to comply with legislation to retain statutory reserve

Dividend Deposit account; this account provides Co-operative Societies with avenue to save for dividend payments

With a vast products and services Cooperative bank also offers alternative banking channels for Sacco banking;

Sacco link ATM Card; this is a Co-op Bank Debit Card that enables SACCO members to access the funds in their SACCO Accounts anytime through ATMs and Bank agents. We have integrated the Sacco backend database with a Co-op Bank switch to enable this to happen.
We use various communication media, depending on location and the financial strength of the Sacco

M-Co-op cash; With the SACCO Link card, Sacco members can also get linked to M-banking, which allows
them to access funds via mobile phones and do a variety of transactions including Buying airtime, Cash transfer from account to M-Pesa and vice versa, Utility payments, Balance inquiry and Mini statements

Sacco Pay Card; this is a pre-loaded Debit Card for small Sacco’s (of between 500-3,000 members) that do not have FOSAs. They may not have the operational capacity to manage a Sacco Link solution due to lack of appropriate technology, back-end database, or manpower.
It enables Sacco members to access a virtual account hosted in the Bank’s system

Sacco Personal Cheques; The Bank provides Sacco’s with branded personal cheque books which the SACCO can issue to Sacco members who have accounts at their FOSA

FOSA’s; more wholesome support goes beyond mere lending facilities and deposits. Kenyan’s use Sacco’s to succeed in their business, they need more wholesome support that goes beyond mere lending facilities and deposits. It is with this in mind that Coop Bank established a subsidiary company – Co-op Consultancy & Insurance Agency Limited (CCIA) to provide specialized financial advisory services to the co-operative societies.

Don’t get stuck on limited products and services bank with Cooperative Bank and get all your needs covered regardless of your social and financial status.