Why Joining A Sacco Is Your Best Bet: Here Are The Top 5 Saccos In Kenya

By Soko Directory Team / Published September 14, 2021 | 10:10 am


When you save with Saccos you can borrow loans 2 to 3 times as much as your savings. Collective investment schemes focus on investing in money market funds and do not offer loans.

In Kenya, Saccos play a key role in uplifting the lives of members. Millions of

What makes a Sacco a good form of savings or investment?

Savings with Saccos helps you develop financial discipline and you reduce spending to make compulsory monthly deposits.

You can borrow loans to start or grow your business after saving with a SACCO for a minimum of six months. Unlike other deposit-taking financial institutions, all members earn interest on the deposits made annually.

Invest with Saccos and earn good returns annually. As a member, you will earn dividends on shares and interests on deposits annually. Saccos also provide investment opportunities like Real Estate Investment to help members own homes.

Why are Saccos important?

As a member of a Sacco, you’re able to cultivate a savings culture. Instead of spending your income frivolously, you can save with a Sacco.

You can access financial support from Saccos. Your accumulated savings with a Sacco help access credit. You will get 2 to 3 times loans as much as your savings at low-interest rates

Saccos improve the economic status of members. Many Kenyans have grown their businesses and created more wealth by joining Saccos.

Return on Investment. Just like any other investment opportunity you expect good returns on investments. Saccos give dividends annually on shares and interests on deposits made.

Read More: Here Is Why Your Sacco Dividends Will Reduce Soon

What is the difference between Saccos and CIS?

Sacco’s pool funds from members and are run by a board of directors elected by members. They provide financial inclusion by mobilizing savings and giving credit to members. They are low-risk investment opportunities. They are regulated by SASRA.

The collective Investment Scheme involves asset fund managers who help investors invest in money market funds or other equities. Examples of money market funds include Treasury bills, commercial paper, banker’s acceptances, negotiable certificates of deposit, repurchase agreements, and short-term debts.

CIS pools funds from individuals and companies to make a collective investment on money market funds or other equities. Asset fund managers providing collective investment schemes include Cytonn Investments, Nabo Africa Money Market Fund, Zimelle Money Market Fund, Alphafrica Money Market Fund, Gen Cap Hela Imara Money Market Fund. They are regulated by Capital Markets Authority.

Read More: The Evolution Of SACCOs Into Investment Institutions


  1. When you save with Saccos you can borrow loans 2 to 3 times as much as your savings. Collective investment schemes focus on investing in money market funds and do not offer loans.
  2. Saccos finance investment opportunities and projects of members like real estate investment, own land, or home while CIS does not offer financial support to real estate investment opportunities by members. Unlike CIS, members can contribute funds to certain projects and earn returns on investments.
  3. Interest rates of Saccos are standard but on Money market funds the rates fluctuate due to inflation. Interest in money market funds is calculated daily due to inflation rates while in SACCOs is calculated annually.
  4. In Saccos you earn both dividends on your shares and interests on savings while in Money market funds you only earn interest on your investment.
  5. The main aim of Saccos is to save, borrow and invest while on the other hand, CIS focus on investments in money market funds and other equities like government bonds. In SACCOs, you can save and use your savings to leverage on loans. Members can take loans and invest in business opportunities to grow.

What you should look for before joining a SACCO?

  • Corporate Governance – A Sacco with good management has high performance in the market. If you hear complaints from members about management avoid saving and investing with that Sacco.
  • Multiple Investments made by the Sacco – Saccos pool funds from members through savings and invest in money market funds, real estate investments, or other profitable investment opportunities. They invest in low-risk investments that guarantee members’ returns (interests) on savings.
  • Reputation and past performances of the Sacco – Reputation is one of the important to consider when joining a Sacco. You may contact the regulatory body SASRA to ensure that the SACCO is duly registered. Do not fall into the trap of pyramid schemes defrauding hardworking Kenyans with their hard-earned money. Research on the experiences of members of the SACCO. Ensure it has a good reputation and performance in the market is high in terms of products/services and benefits.
  • Guarantors and Security. To access credit from Saccos you’re required to have guarantors. Before joining a Sacco it’s important to make sure you have two or three guarantors who are already members of that Sacco. Save with Saccos to leverage loans with savings made for the period. Savings act as collateral and you can borrow 3 times as much as your savings.
  • Dividends are paid to members annually. Research on the dividends issued to members in the past 5 years. Buy shares of a SACCO that pay dividends at more than 10% annually to beat the inflation rate and still make good returns.
  • Interest rates on loans. Save with a Sacco offering loans at low-interest rates. I prefer savings with Saccos charging interest rates of less than 12% per annum on reducing balance.
  • Big Membership – Join a Sacco with many members. Huge membership means people have confidence in the Sacco. With a huge members, a SACCO is able to mobilize more savings and they can use to leverage on investments to make good returns. This translates to better interest rates on savings.
  • Registration by regulatory body SASRA – Before joining a Sacco always check if it’s registered and licensed by SASRA. Do not fall into the trap of pyramid schemes and unlicensed entities defrauding Kenyans with their hard-earned money.

What are the best Saccos in Kenya?

Start saving and investing today. The following is a list including the Registration processes, dividends paid to members, interest rates on loans, and membership of the best performing Saccos in Kenya.

Read More: Kenyan SACCOs Losing Ksh 72 Million Daily to Hackers

  1. Hazina Sacco – To join this Sacco you will pay a Registration Fee of Ksh 1000, a monthly deposit of Ksh 1000, and buy Minimum share capital of Ksh 13,000. Earns Dividends of 19 percent annually. The interest rate for loans is 1 percent. Has more than 18000 active members.
  2. Stima Sacco – To join this Sacco you are required to pay a registration fee of Ksh 1000, a monthly Deposit of Ksh 1000, and buy minimum share capital of Ksh 25,000. Dividends of 14% are paid to members. Interest Rates for Loans is 12 percent to 14 percent. Has over 100,000 members.
  3. Safaricom Sacco – To join this Sacco you will pay a Registration fee of Ksh 1000, Monthly contributions of Ksh 3000, and Buy Share capital of Ksh 40,000. Earns Dividends of 12 percent Per-share annually. The interest rate for loans is 1 percent. Boasts over 12,000 members.
  4. Kenya Police Sacco – To join this Sacco pays a minimum of Ksh 500 and buys a Minimum share capital of Ksh 50,000. Earns dividends of 17% per share. Boasts more than 63,000 members and an asset base of Ksh 39 Billion.
  5. Unaitas Sacco. To join you can open a savings account with a minimum Deposit of Ksh 5,000. Earns Dividends of 8% per share. You will get long-term loans at an interest rate of 1% to 1.5%. Has more than 320,000 members.

Mortgage Loans from Saccos – Own your dream home in a short period

Kenya Mortgage Re-Financing Company provides lending to primary mortgage lenders like Banks and SACCOS to offer affordable housing to Kenyans. In this case, the following Saccos are key primary mortgage lenders as published on the KMRC website; Harambee Sacco, Stima Sacco, Safaricom Sacco, Bingwa Sacco, Ukulima Sacco, Kenya Police Sacco, Mwalimu Sacco, Imarika Sacco, Imarisha Sacco, Unaitas, Tower Sacco.

KMRC issues affordable housing loans to Primary Mortgage Lenders to re-finance mortgage loans capped at KES 4 million in Nairobi metropolitan area (Nairobi, Kiambu, Machakos & Kajiado) and KES 3 million elsewhere to individual borrowers whose monthly household income is not more than KES 150,000.

In December 2020, KMRC disbursed Ksh 2.75B to Primary Mortgage Lenders for affordable housing. This mortgage refinancing will help dreams of owning homes become a reality. KMRC was established three years ago to support the Affordable Housing Pillar of the Government’s Big Four Agenda.

Own your Dream Home in the next 5 years. Start saving and investing with a SACCO today.

If you want to own your dream home save with Saccos for 5 years and apply for mortgage loans. Saccos provide the Best Mortgage loans in Kenya with a longer repayment period & low interest rates. I wouldn’t recommend you to take mortgage loans from Banks.

When saving Ksh 5000 monthly with a Sacco your annual savings will be Ksh 60,000. In 5 years total savings will be Ksh 300,000. You can acquire mortgage loans from Saccos 5 times your savings which means Ksh 1.5M at a very low-interest rate.

  1. Safaricom Sacco – Save with Safaricom Sacco for one year and apply for a mortgage loan 5 times your Deposits. The Repayment period is up to 25 years and the interest rate is 8% P.A on a reducing balance. The minimum loan amount is Ksh 3M & the maximum is Ksh 8M. “Am so glad that Safaricom Sacco was amongst the first Sacco’s to offer this mortgage in partnership with KMRC. It came at a time when I was looking around for financing and so the credit officer took me through the process which I complied with and being that I had a ready plot this made it even easier and here I am a homeowner courtesy of Faraji home construction mortgage offered by Safaricom Sacco in partnership with KMRC it is very affordable at 8 percent,” said George, a Safaricom Sacco member.
  2. Harambee Sacco – It’s the first Sacco to offer mortgage loans at a subsidized interest of 7% under the home loans refinancing plan. Shareholders can access mortgage loans starting from Ksh 500K to Ksh 4M. The repayment period is up to 25 years.
  3. Police Sacco – Save and invest with Police Sacco. You can access a mortgage facility of a maximum of Ksh 4M at a low interest rate of 9% P.A. They finance members to construct homes or purchase houses. The Repayment period is up to 20 years.
  4. Stima Sacco Save Ksh 200,000 and buy minimum shares of Ksh 25,000. Stima Sacco members can access mortgage loans at affordable rates of 9% on a reducing balance. You can access a mortgage loan of up to Ksh 4M. The repayment period is up to 25 years.
  5. Mwalimu Sacco: It’s one of the primary lenders of affordable mortgage loans. Members can access minimum mortgage loans of Ksh 500K and a Maximum of Ksh 4M at an interest rate of 9% on reducing balance. The repayment period is up to 25 years.
  6. Ukulima Sacco is one of the primary mortgage lenders in partnership with KMRC. You can access a mortgage loan of up to Ksh 8M at a low-interest rate of 7% P.A. Repayment period is 25 years for members in formal employment & 15 years for members in the informal sector.

You may contact any of these primary mortgage lenders in Kenya. Start the journey to owning your dream home today.

By Waruhiu Franklin

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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