Best Saccos in Kenya

Savings and Credit Cooperative Organizations (SACCOs) have become the most rewarding banking system in the financial sector. Members contribution on shares and alpha deposits accounts has increased savings which have led to much borrowing. High rate of borrowing causes increased interest on money loaned out by the firm leading to high return on members investments.

Based on the Kenya investing sector, SACCOs are the top, since they offer up to 18% on the investments made by members. I will guide you through the article to help you know what SACCOs are, the types of SACCOs in Kenya, the best SACCOs in Kenya, and more about them.

What are SACCOs?

Savings and Credit Cooperative Organizations (SACCOs) refers to members owned financial institutions that provide savings and loan services to its members.

A SACCO is formed by members who have a common interest, for example, Farmers or Teachers can come up with their SACCOs so that the members can borrow from the SACCOs at low interest rates.

Types of SACCOs

Deposit-Taking SACCOs (DTS)

These type of SACCOs accept deposits from their members. They have Alpha-deposit accounts which are accounts that accept monthly contributions from the members of about 1000 Kenya Shillings and above.

Their money is loaned out to banks, members, and also to invest in SACCO projects.

Non-Deposit-Taking SACCOs (Non-DTS)

These SACCOs primarily provide savings and credit services but they do not accept deposits for withdrawal like banks. Once you deposit, there is no way you will withdraw the money back.

Members save their money and can borrow loans based on their savings.

Best Saccos in Kenya

I will take you through the best SACCOs in Kenya based on total asset value and their advancement in technology.

Mwalimu National SACCO

In terms of asset value, Mwalimu National SACCO is leading with a total of KSh 66.43 billion. All SACCOs with high asset value indicate the SACCO’s financial stability.

The SACCO focuses on Teachers on different levels, so longer they are registered under the Teachers Service Commission (TSC).

For you to join Mwalimu National SACCO, you must be a TSC teacher or a TSC professional from the following:

• Primary teacher
• High school teacher
• Lecturer
• TSC secretariat members

Stima DT SACCO

Stima DT SACCO has an asset base of Ksh 59.15 billion, making it the second largest SACCO in Kenya.

The SACCO is open to individuals within and beyond the energy sector.

Stima DT SACCO is the best SACCO based on the following:

• First SACCO to introduce mobile banking services, for example, M-Stima and M-Pawa
• First SACCO to offer cheque truncation services
• First conventional SACCO to launch a Shariah-compliant product line
• First conventional SACCO to issue cheque books
• Stima Sacco was the first deposit-taking Sacco to be licensed by SASRA and holds license number one
• First Sacco to launch Instant ATM service

Stima DT SACCO is the best of all other SACCOs because of its advancement in technology.

Based on the Approval made during the 48th Annual General Meeting, the minimum share capital one should have as a member is based on the following:

• Chama Prime Investor – Minimum share of 1, which equals KES. 500
• Chama Gold – Minimum shares of 50, which equals KES. 25,000
• Chama Diamond – Minimum shares of 100, which equals KES. 50,000

Kenya Police DT SACCO

Kenya National Police SACCO is the third largest SACCO in Kenya with a total asset value of Ksh 54.24 billion.

In the year 2024 during Ushirika Gala Awards 2024, Kenya national police SACCO was awarded as the best managed SACCO in Kenya.

Any person can join the SACCO regardless of their occupation.

Harambee DT SACCO

Harambee SACCO started as a merry-go-round organization which encouraged people to save money. This merry-go-round process started way back in 1969, six years after Kenya attained independence.

The term “Harambee”, was the Kenya’s first president Mzee Jomo Kenyatta’s favorite slogan which means, “pooling together.”

This merry-go-round organization later transformed into a Harambee SACCO, which was formed in 1970.

To date, Harambee SACCO is the fourth largest SACCO in Kenya with an asset base of Ksh 38.57 billion.

Towers SACCO

Imarisha SACCO

Hazina SACCO

Kenya Bankers SACCO

Safaricom SACCO

Mhasibu NWDT SACCO

Mhasibu SACCO was established in 1986 by the Institute of Certified Public Accountants of Kenya(ICPAK) to cater for the financial needs of the accounting professionals.

Over the years, Mhasibu SACCO expanded its membership to include professionals from other fields.

Membership is open to professionals, entrepreneurs, and organizations.

How to Choose the Best SACCO

Financial stability. To determine whether a SACCO you want to choose is stable or not, look at its total asset value. If the total asset value is high and has also been increasing over the past years, it means that the SACCO is financially stable.

Improvement in technology. Over the recent years, technology has improved to ensure members satisfaction. Financial institution that has improved technology is likely to do well in the years to come. In Kenya, Stima SACCO has achieved this, they have improved technology.

Ensure the SACCO is regulated by SASRA, a government regulatory body for SACCOs in Kenya. Sacco Societies Regulatory Authority(SASRA) provides an analysis of reports yearly on SACCOs’ performance and also provides reports yearly on legitimate SACCOs registered under them.

Why join a SACCO?

Higher Interest on Savings. SACCOs offer their members higher returns on their savings than banks and microfinance institutions.

Low-Interest Loans. Members can access loans with lower interest rates. SACCOs offer their members lower rates on loans as compared to banks and microfinance institutions.

Profit Sharing. Members receive dividends yearly based on the shares they have in a particular SACCO. The least amount of shares a member can hold in any SACCO is 25,000 Kenya Shillings.

Financial Security. SACCOs promote a culture of saving and financial discipline through monthly contributions and share deposits made by members.

Conclusion

Best SACCOs in Kenya are low risk investment compared to other investments in Kenya. Also these SACCOs offer high interest rates compared to those of banks, money market funds and Microfinance institutions.