Guide to the Best SACCOs to Join in Kenya

15 min readJan 23, 2024

Joining a SACCO (Savings and Credit Cooperative Organization) is one of the best financial decisions you can make in Kenya. SACCOs provide a means for people to come together and pool their savings, which are then used to give loans to members at favorable interest rates.

With thousands of SACCOs in Kenya, how do you identify the best SACCOs to join? In this comprehensive guide, we discuss the top SACCOs in Kenya and what makes them stand out. Whether you are looking to save, borrow or invest, this guide will help you find the right SACCO for you.

An Overview of SACCOs in Kenya

SACCOs are cooperative societies that are owned and managed by their members. They aim to promote thrift and savings culture as well as provide affordable credit to members.

The SACCO movement in Kenya started in the 1960s and has rapidly grown over the years. Currently, there are over 5,000 SACCOs with a membership of over 5 million Kenyans. The industry is regulated by the Sacco Societies Regulatory Authority (SASRA).

Some of the benefits of joining a SACCO include:

Access to savings and credit facilities at reasonable interest rates
Ownership through shares
Democratic control of the SACCO affairs
Dividend on shares and interest on deposits
Promotes self-help and mutual responsibility

SACCOs in Kenya can either be deposit-taking or non-deposit taking. Deposit-taking SACCOs are licensed and regulated by the Central Bank of Kenya while non-deposit taking ones are regulated by SASRA.

With so many SACCOs in Kenya to choose from, it can be daunting finding the right one for you. The key is to look at factors like financial performance, management, products/services, and membership base among others.

This article provides a review of the top 10 best SACCOs in Kenya based on such factors to help you make an informed decision.

The Top 10 Best SACCOs in Kenya

1. Mwalimu National SACCO

Mwalimu National is the largest SACCO in Africa with over 300,000 members and KES 200 billion in assets (as of December 2021). It draws its membership from teachers and staff working in the education sector in Kenya.

Some key facts about Mwalimu National SACCO:

Offers competitive loans including emergency, school fees, development, mortgage loans etc.
Has over 100 branches countrywide
Manages a very large pool of funds allowing for cheaper loans
Has premium banking services e.g. debit cards, mobile banking, internet banking etc.
Offers savings products like Shares, Target Savings and Fixed Deposits
Pays very competitive dividends to members

Mwalimu is among the best performing SACCOs and is highly regulated having a strong management in place. The large pool of funds allows it to offer cheaper interest rates on loans.

Joining requirements: Open to teachers, staff of educational institutions and family members. Minimum savings of KES 100,000 for ordinary shares.

2. Stima SACCO

Stima SACCO is a fast growing deposit-taking SACCO that is open to members from different sectors. It has over 180,000 members and assets worth KES 35 billion.

Some of the reasons why Stima is among the top SACCOs include:

Has a presence across major towns providing convenience
Offers competitive interest rates on loans as low as 1% per month
Has a diversified loan portfolio including personal, business, mortgage loans etc.
Investment options to grow your savings such as Fixed Deposits
Good customer service and cash handling
Has invested heavily in technology for efficient services

Stima Sacco has robust financial management systems and has consistently performed well year after year. TheirNLP diversity also reduces risks for members.

Joining requirements: Minimum savings of KES 20,000 and minimum shares of KES 1,000. Open to anyone.

3. Kenya Police SACCO

Kenya Police SACCO is one of the largest and best performing SACCOs in the country. It has over 80,000 members and KES 27 billion in outstanding loans (2021).

Here are some of the key features of Kenya Police SACCO:

It has the widest branch network in Kenya with over 100 branches
Offers instant mobile loans and mobile banking services
Has competitive loan rates starting as low as 1% per month
Open to police officers, civil servants, former employees and civilians
Funds are securely invested in low-risk government securities
Has a very strong capital base and excellent liquidity

The SACCO has consistently delivered double digit dividends (10% — 15%) due to its prudent management. The wide coverage and use of technology makes it efficient.

Joining requirements: Minimum savings of KES 10,000 and minimum shares of KES 5,000. Employees must contribute 2% of basic salary.

4. Harambee SACCO Kenya

Harambee SACCO has experienced massive growth over the years to become one of the top SACCOs. As of June 2021, it had over 120,000 members and KES 20 billion in assets.

Here are some of the key reasons to join Harambee SACCO:

Offers competitive packages on loans and deposits
Has strong liquidity and capital base thanks to members’ contributions
Management expenses are low hence better returns for members
Covers a wide range of employers including civil service, disciplined forces etc.
Investment options such as corporate bonds, government securities etc.
Has heavily invested in systems and processes to improve efficiency
Highly rated by rating agencies for strong financial position

Harambee has a very diverse portfolio given its wide coverage of employers. Technology integration has also improved service delivery.

Joining requirements: Minimum savings of KES 100 and minimum shares of KES 5,000. Open to public and private employees.

5. Unaitas SACCO

Unaitas Sacco is among the fastest growing deposit-taking SACCOs in Kenya. It has over 70,000 members and manages KES 13 billion in assets (as of 2021).

Some of the key benefits of joining Unaitas SACCO include:

Offers high dividends averaging 15% due to prudent investment of funds
Has a wide branch network spread across major towns for convenience
Has diversified loan products including business, agriculture, mortgage loans etc.
Competitive loan rates ranging from 1% — 1.1% per month
Invests in government securities to earn good returns for members
Has heavily invested in a robust IT system and training to improve efficiency

Unaitas is well managed which reflects in the good dividends. The investments in IT have significantly improved service delivery.

Joining requirements: Minimum savings of KES 100 and minimum shares of KES 5,000. Open to employees and general public.

6. Hazina SACCO

Hazina Sacco is one of the most established SACCOs, having been started in 1971. It draws most of its members from the civil service and has over 100,000 members.

Some of the reasons why Hazina is a top SACCO include:

Offers attractive interest rates on deposits up to 7% per year
Has robust systems and processes for strong governance
Manages a loan book of over KES 12 billion covering diverse sectors
Highly liquid with cash reserves invested in government securities
Covers a wide membership base including civil servants, private sector etc.
Offers premium financial services including cards, mobile banking etc.

Hazina has strong financial position thanks to the large pool of funds from members’ contributions. This allows it to offer cheap loans and high returns on deposits.

Joining requirements: Minimum savings of KES 500 and minimum shares of KES 5,000. Employees must contribute minimum 10% of basic pay.

7. Umuri SACCO

Umuri Sacco is a highly rated new generation SACCO that is aggressively growing its footprint. It has an active membership of over 15,000 and assets worth KES 2 billion.

Some of the key reasons why Umuri SACCO stands out include:

Uses technology to offer efficient services and loan processing
Has competitive interest rates on loans as low as 1% per month
Minimum savings requirement is only KES 100 making it affordable
Good Customer Service via their contact center and social media
Mobile App allows self-service including loan application
Flexible loan repayment period up to 48 months
Pays dividends up to 10% on share capital

Umuri has leveraged technology well through solutions like mobile apps and CRM. This makes them efficient and convenient to members.

Joining requirements: Minimum savings of KES 100 and minimum shares of KES 1,000. Open to individuals, chamas and institutions.

8. Afya SACCO

Afya SACCO is a giant in the health sector with over 120,000 members drawn from medical practitioners and health workers. It has over KES 9 billion in assets under management (as of 2021).

Some of the key features of Afya SACCO include:

Offers the lowest interest rates on loans at 0.67% per month
Has the widest branch network targeting health workers countrywide
Allows members to save and borrow up to 20 times their shares
Has invested heavily in liquid deposits and government securities
Pays very competitive dividends on shares
Has robust systems and processes supporting operations
Rated excellent in terms of liquidity and asset quality

Afya SACCO has leveraged technology well to improve efficiency in service delivery. The large pool of funds also allows it to lend cheaply to members.

Joining requirements: Minimum savings of KES 500 and minimum shares of KES 50,000. Open to medical practitioners and health workers.

9. Kenya Bankers SACCO

As the name suggests, Kenya Bankers SACCO draws its membership from employees in the banking and finance industry. It has over 15,000 members and KES 7 billion in assets.

Some of the key benefits of joining Kenya Bankers SACCO include:

Offers financial services tailored for bankers
Has attractive loan products including personal, mortgage, car loans etc.
Allows members to borrow up to 3 times their deposits
Pays attractive interest on deposits up to 7% per annum
Has a strong liquidity position and capital adequacy
Investment options to grow savings such as corporate bonds
Leverages technology to give efficient services

The SACCO has experienced managers given the member profile. This ensures services are tailored to meet unique needs of bankers.

Joining requirements: Open to employees in banking, finance and related industries. Minimum shares of KES 10,000.

10. Metropolitan SACCO

Metropolitan SACCO is a fast-growing deposit-taking SACCO with presence in major towns. It has over 15 branches and 30,000 members under its wing.

Here are some of the reasons why Metro SACCO is a good option:

Has diversified loan products including personal, chama, emergency loans etc.
Allows members to borrow up to 3 times their savings
Has invested in IT infrastructure for efficient operations
Pays interest on deposits up to 7% per annum
Competitive loan rates at 1.1% per month
FOREX services offered for members who travel
Has strong liquidity and capital adequacy ratios

The SACCO is aggressively expanding its branches and services while maintaining financial discipline. This has seen it stand out among mid-tier SACCOs.

Joining requirements: Minimum savings of KES 500 and minimum shares of KES 2,000. Open to public.

Factors to Consider When Choosing a SACCO in Kenya

With an overview of the top SACCOs in Kenya, let’s now look at some of the key factors you should consider when choosing a SACCO. This will help you do further analysis and select the best SACCO that aligns with your financial needs and goals.

Financial Performance

One of the top considerations when selecting a SACCO is its financial performance. Some key metrics to analyze include:

Capital adequacy — Measures the SACCO’s financial strength. Higher is better.
Asset quality — Indicates quality of loans issued and risk of default. Lower non-performing loans is better.
Liquidity — Determines if the SACCO can meet its short-term obligations. Higher liquidity ratio is better.
Earnings & profitability — Shows if the SACCO is generating enough income to grow. High returns on assets and equity is better.

These metrics will give you insights into how financially sound a SACCO is. The best SACCOs often have stronger financial ratios.

Management

The leadership and management behind a SACCO plays a big role in how well it performs. Some factors to assess include:

Governance — Are there robust structures, controls and processes to ensure transparency and accountability?
Regulation — Is the SACCO properly licensed and complying with regulations?
Reputation & track record — What is the experience and performance over the years? Well performing SACCOs often have stronger governance and management.

Products & Services

The range of products and services offered is also an important consideration when selecting a SACCO. Check the variety of:

Savings products — What types of savings accounts, deposits and investment options are available?
Loan products — What types of loans are offered including personal, emergency, business loans etc.? What are the loan terms?
Channels — What channels does the SACCO use to serve customers e.g. branches, mobile, cards, internet banking etc.?

Choose a SACCO with the right mix of products that suit your needs. The top SACCOs tend to have more diversified offerings.

Membership & Ownership

When you join a SACCO, you become a member owner. It’s important to consider:

Membership base — Who are the current members? Does the profile align with yours? Larger membership bases tend to be better.
Ease of joining — What are the requirements to join in terms of documents, payments, processes etc.? How convenient is it?
Ownership terms — How do you contribute to shares? What are the structures for dividends and bonuses? What are the AGM rules?

The SACCO should make it easy and transparent for you to become an owner. Understand the terms upfront.

Service Quality

You are looking for a SACCO where your money and needs are in safe hands. Service quality factors to evaluate include:

Convenience — How easily accessible are the services via channels like branches, ATMs, mobile etc.?
Efficiency — Are processes seamless? How long does it take to address customer needs and issues?
Staff conduct — Are the staff well trained and professional when serving customers?
Customer feedback — What are customers saying about the service quality? The top SACCOs invest in service quality.

By considering these key factors, you can find the most ideal SACCO in Kenya tailored to meet your financial needs. Conduct due diligence before committing.

Understanding the Different Types of SACCOs in Kenya

There are different types of SACCOs in Kenya offering varied services. Understanding the key categories will help pick the right SACCO for you. Let’s look at 3 main types:

1. Deposit Taking SACCOs

These are SACCOs licensed under the Cooperative Societies Act to mobilize deposits and savings from members. They are regulated by the Central Bank of Kenya and Sacco Societies Regulatory Authority (SASRA).

Some features of deposit-taking SACCOs:

Offer front office (FOSA) and back office banking services
Mobilize savings and deposits from members to give loans
Require higher minimum capital of KES 10 million
Offer services like ATM cards, internet banking, mobile banking etc.
Offer higher loan amounts given cash reserves e.g. up to 5 times deposits

Examples: Afya SACCO, Stima SACCO, Kenya Police SACCO

2. Non-Deposit Taking SACCOs

These only offer basic savings and credit services but don’t mobilize deposits from members. They are regulated by SASRA.

Key attributes of non-deposit taking SACCOs:

Only allowed to offer loans from members’ share contributions
Don’t offer back office banking services like ATMs, cards etc.
Require lower minimum capital of KES 500,000
Offer lower loan amounts usually 3 times of shares
Ideal for smaller savings and credit groups

Examples: Tuskys SACCO, Hazina SACCO, Ushirika SACCO

3. Front Office Service Activities (FOSA) SACCOs

These are midway between the deposit-taking and non-deposit taking SACCOS.

Some features of FOSA SACCOs include:

Licensed to offer limited front office services like ATMs, cards, mobile banking etc.
Don’t offer back office banking so can’t mobilize deposits
Require minimum capital of KES 5 million
Offer loans up to 3 times member shares and deposits
Allow cash deposits and withdrawals at dedicated branches

Examples: Maisha Bora SACCO, Century SACCO Society, Afribridge SACCO

Choose a SACCO type that aligns with your needs. FOSA and deposit-taking SACCOs offer more sophisticated services but have higher barriers to joining.

5 Tips to Choose the Right SACCO in Kenya

Based on the insights covered, here are 5 tips to help choose the right SACCO in Kenya:

1. Align with Your Goals

First decide why you want to join a SACCO. Are you looking to access emergency loans? Grow your savings? Obtain a mortgage? Your goals will determine the suitable SACCO. If looking for higher value loans, deposit-taking SACCOs are better suited. For accessible emergency loans, a non-deposit taking one with minimum entry requirements may be ideal.

2. Check Financial Performance

Review a SACCO’s financial statements and ratios before joining. You want one with strong capital adequacy, asset quality, liquidity and profitability. This ensures your money is in safe hands. Also check ratings from approved agencies like Fitch Ratings. Deposit-taking SACCOs in Kenya disclose more financial details publicly.

3. Understand Ownership Terms

The shares you purchase in a SACCO make you a member owner. Review the terms regarding minimum shares, dividends, redemption rules etc. Also, check the voting process ,you should have rights to participate in decision making at the Annual General Meeting. Read membership terms upfront.

4. Look for Convenience

Consider accessibility factors based on your needs. How easily can you deposit, withdraw or access loans? Things like proximity of branches, availability of ATMs, mobile/internet banking options matter. Convenience reduces the hassle of transacting.

5. Compare Interest Rates

Keenly look at interest rates offered for both savings and loans. This impacts your costs or returns directly. Deposit-taking SACCOs and large ones like Mwalimu offer very competitive rates. Always compare rates before deciding.

By applying these tips, you can find the ideal SACCO that fulfills your financial goals. Do research online and also talk to people already using the SACCO to make the right decision.

Commonly Asked Questions About SACCOs in Kenya

Below are answers to some frequently asked questions about SACCOs in Kenya:

What are the benefits of joining a SACCO in Kenya?

The key benefits of joining a SACCO in Kenya include:

Access to regular savings plans to accumulate lumpsums
Ability to get quick emergency loans at affordable rates
Opportunity to access larger asset financing loans e.g. mortgages
Earn dividends on your shares as an owner of the SACCO
Platform to network and learn from other co-operative members

How safe are SACCOs in Kenya?

SACCOs in Kenya are generally quite safe when regulated properly. Deposit-taking SACCOs are regulated by the Central Bank and required to meet prudent standards just like banks. This guarantees safety of deposits up to the maximum insured levels under the Kenya Deposit Insurance Corporation which currently stands at KES 500,000.

The majority of top SACCOs also have strong financials and liquidity. However, you should still conduct due diligence before joining any SACCO.

What are the requirements to join a SACCO in Kenya?

The common requirements to join most SACCOs in Kenya include:

Filling a membership application form
Attaining the minimum age of 18 years
Providing a copy of your national ID or passport
Purchasing the minimum shares (between KES 1,000–5,000 in most SACCOs)
Meeting any minimum savings balance if required e.g. some need KES 5,000
Providing supporting documents based on type of SACCO e.g. pay slip
Paying a one-time membership fee (ranges from KES 100–1,000)

Always check specific requirements with the SACCO you wish to join.

How do you borrow or take a loan from a SACCO?

To take a loan from a SACCO, you must first be an active member and have met set requirements on minimum savings and shares contribution. You then apply for the specific loan product and await approval.

The loan amount may range from 1 to 5 times your shares/savings depending on SACCO policy. Interest rates range from 1% — 1.2% per month on reducing balance. Loans are repaid through payroll deductions or standing orders from your personal bank account.

What happens if you default on a SACCO loan?

Defaulting on a SACCO loan has serious consequences including:

Your savings/deposits will be attached and used to recover the loan
Outstanding loan amounts continue attracting interest so your costs increase
You will be listed with Credit Reference Bureaus like CRB Africa that negatively affects your credit score
Legal proceedings may be taken including auctioning assets to recover the loan
Your membership will be deactivated restricting access to services

Avoid defaulting at all costs by making repayments on time. If facing challenges, reach out to your SACCO early to discuss options.

Wrapping Up

I hope this detailed guide has given you great insights on how to choose the best SACCO in Kenya. Some of the top options include Mwalimu SACCO, Afya SACCO, Kenya Police SACCO, Stima SACCO and Hazina SACCO among others.

Remember, conduct due diligence by checking financial performance, management, ownership terms, product offering, and service quality before joining a SACCO. This will ensure your money is in safe hands.

Joining the right SACCO can be one of the best financial decisions you make. It provides a means to grow your savings, access convenient credit, and get good returns as an owner. Evaluate your goals and use the tips outlined to pick the ideal SACCO in Kenya for you.