Where To Invest Money in Kenya 2022, Saccos?


Where to Invest Money in Kenya 2022, Saccos, Treasury Bills or Bonds? Learn more about these investment options in this amazing article.


Are you looking forward to joining a SACCO in 2022? Learn more about Saccos as an Investment option in Kenya in this amazing article.


Understanding Saccos Investment Option in Kenya


How do SACCOs work? Are SACCOs good investment opportunities in Kenya? Which are the best SACCOs to join?

A SACCO is an association that is registered and authorized to take money(deposits) and lend money(loans) to its members. The SACCO pools the savings and lends them out or invests in authorized instruments such as shares, treasury bills and bonds as authorized.

There are 175+ registered SACCOs where you can invest money in Kenya. These are regulated by the SACCO Societies Regulatory Authority (SASRA) They have a combined asset value of more than Ksh 393 billion.

Many SACCOs in Kenya have restricted membership to industry or sector of working. For example, Stima Sacco- for power generation & distribution sector employees and Magereza Sacco- formed by prison services employees respectively.

Recently some SACCOs have opened membership to other members of the public. You must first buy shares in a Sacco to become a member. Members can save their money in a Sacco. Every Sacco has a minimum share capital. A Sacco saving scheme is strictly regular. Monthly contributions must be maintained throughout the course of membership without default.

You must ascertain the size of your regular income to determine the amount to be deducted every month. In a Sacco, to save is to deposit and to access deposit is to borrow. You must take a loan to access the money.


Once you put your money in a Sacco, you can only access the money by taking out a loan or terminating your membership. Although members have the choice to determine the size of their monthly contributions, there is a mandatory monthly payment.

The loan you qualify for must be within the limit of your savings. A member must save for a period of not less than 6 months to be considered for credit. As a universal rule in many local SACCOs, the member is only eligible for up to three times his savings.

While banks insist on collateral, SACCOs only need members to guarantee the loan. The guarantor’s accumulated deposit should be equivalent to the amount of the loan. In case of default, the guarantor bears the debt. The Sacco will seize his deposits until you settle the debt.

Loan repayment is separate from your regular savings plan. Your regular contribution to the Sacco must be maintained even as you repay your loan. It is advisable to find an extra income for loan repayment as you continue to save.

WHICH SACCO SHOULD YOU JOIN? The best Sacco for you is the one whose products and services match with your needs.

Below are some of the things you should consider before joining any Sacco.

  • Is the Sacco registered?

Visit the SASRA website for the updated list of registered SACCOs in Kenya.


  • Safety of your money

You want to have insurance for your money. It is therefore crucial to find a reliable Sacco that’s registered, insured, and regulated.

  • Interest rates on loans.

Take a keen interest on the interest rate on loans. Are you comfortable with it? Interest rates on deposits. SACCOs pay annual dividends to their members. Compare different SACCOs for evaluation. Most SACCOs publish their rates on their website.

  • Technology

You won’t love a Sacco that will keep you in their offices all the time while others have all their operations on their mobile phones.

  • Loans payment period.

Go for the Sacco with the most flexible terms.


  • Financial statements   Find out how you will be getting your statements.
  •  Ask for referrals. Ask around to find out what SACCOs your friends have joined.
  • Customer Care Services

Ask around to find out which Sacco serves their customers best.


Why are Saccos Good Investment channels Where to Invest Money in Kenya?


1 Unlike banks, they have lower interest rates on loans & higher interest rates on savings.


2 No collateral required to take loans. Only guarantors.


3 Emergency funds are catered for. SACCOs can process emergency loans in hours.



4 SACCOs create a saving and contributory discipline


5 They have lower mortgage rates.



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Mr Frederick January 3, 2022 0 Comments