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What is a SACCO?

SACCO stands for "Savings and Credit Co-operative;" that is, a democratic, unique member driven, self-help, not for profit financial co-operative. In some places, it is called a "credit union."

A SACCO is owned and governed by members who have the same common bond: working for the same employer, belonging to the same church, labour union, social fraternity or living/working in the same community. A Savings and Credit co-operative’s membership is open to all who belong to the group, regardless of race, religion, colour, creed, gender, or job status. These members agree to save their money together in the SACCO and to make loans to each other at reasonable rates of interest. Interest is charged on loans, to cover the interest cost on savings and the cost of administration.

There is no payment or profit to outside interest or internal owners. The members are the owners and the members decide how their money will be used for the benefit of each other. 

Savings and Credit Co-operatives are democratic organisations and decisions are made in a structured democratic way. Members elect a board to make overall management decisions. The number of board members are between nine and fifteen. Members also elect a supervisory committee to perform the function of an internal audit.

For more information about the philosophy and structure of a SACCO, click here.

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