is a SACCO?
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."
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.
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.