Frequently Asked Questions
WHAT IS A COOPERATIVE SOCIETY?A cooperative is an autonomous association of persons united voluntarily to meet their common economic and social needs through a jointly-owned and democratically-controlled enterprise/business.
WHAT ARE THE COOPERATIVE PRINCIPLES?
- Voluntary and Open Membership
- Democratic Member Control
- Member Economic Participation
- Autonomy and Independence
- Education, Training and Information
- Cooperation amongst Cooperatives
- Concern for Community
WHAT IS A SACCO?A Savings and Credit Cooperative Society (SACCO) is a member-owned financial cooperative whose primary objective is to mobilise savings and afford members access to loans (productive and provident) on competitive terms as a way of enhancing their socio-economic well being. It is formed by people having a common bond.
WHAT IS A COMMON BOND?
A common bond is a unifying factor (that which brings people together).
Two types of bonds generally exist as follows:
The bond exists where members are resident in a particular locality or neighbourhood. A community bond caters to all people within the community.
Occupational or associational bond
The bond provides for people of the same occupation or for those employed by a common employer or who belongs to the same profession.
*Open Bond SACCOs can be comprised of both Community and Occupational Bonds.
WHO CAN JOIN SACCO?Joining a SACCO is easy. Membership is open to all regardless of sex, race, religion or political affiliation. It is voluntary within the SACCO’s common bond. Each SACCO has a membership qualification process, common ones being that you are a member of a particular grouping or company, e.g. if you are a teacher or an employee of a particular organization, or if you belong to a certain community. Everyone from a Farmer to a CEO is able to join a SACCO!
HOW DIFFERENT IS A SACCO FROM OTHER BANKS OR MICROFINANCE INSTITUTIONS?SACCOs are member-owned and not profit-oriented. Their philosophy is “people helping people”.
WHAT ARE THE BENEFITS OF KEEPING MONEY IN A SACCO?
- Members have a voice in the running of the SACCO since they own the institution;
- Members receive dividends at the end of the financial year;
- Access to financial services is non-discriminatory and affordable
- Contribution to a positive community
HOW SAFE IS ONE'S MONEY IN A SACCO?The SACCO mechanism provides for the safety of members’ money i.e. controls and procedures, committees and reporting structures all provide for the safety of the members’ money.
WHERE CAN I FIND A SACCO NEAR ME?