According to Federal Cooperative Agency (FCA) official report (2021)1, there are more than 92755 cooperatives in Ethiopia with 21,043,370 members (6,743,429 female and 14,299,941 male) and there are 21,328 primary SACCOS and they have 5,384,559 members (3,122,454 female and 2,262,105 male).
Can I join Stima Sacco as an individual
Stima Sacco is a member – owned business and membership is open to all resident and non – resident Kenyans anywhere in the world.
The Sacco admits eligible individuals, groups, or corporates for membership of the Society upon fulfilment of membership opening requirements.
Why SACCOs are becoming popular in Kenya
Savings and credit cooperative societies, commonly known as SACCOS, are becoming increasingly popular in Kenya.
They provide an alternative to banks for low-income earners who need financing. Taxi driver George Mokua said being a member of a SACCO helped him start his taxi business.
Why are SACCOs so relevant
SACCOS enable farmers to create economies of scale in bargaining with urban banks and other financial institutions; they provide access to sustainable financial services; and, they provide low-income families with safe place to save their income at their area or village and reasonably priced loan (USAID ,2006).
Can one withdraw money from a SACCO
Yes you can withdraw your deposits instantly but the Sacco will charge you a commission 10% of current deposit amount in lieu of withdrawal notice of 60 days.
Why SACCO savings are at risk
SACCOs also face technological risk due to rapid change of technology, credit risk, and lack of funds, competition and other risks that face organizations in the same industry.
The risks SACOs were exposed to, did not matter the number of years a SACCO has been operating, the membership, or the deposit base.
What are the benefits of shares in a SACCO
Shares are available to our members of the Sacco upon positive identification to the satisfaction of the Sacco.
Shares are not refundable and earn dividends paid from net surplus at the end of a financial year.
Deposits are refundable and can be collateral for a loan or guarantee.
What is the composition of the management of a SACCOs
Sacco Management. Times U Sacco Society is governed by nine elected directors- four Executive Directors and five Board of Directors who are complemented by a supervisory committee that consists of three members.
The operations of the Sacco are conducted by a competent group of staff members who are headed by the CEO.
Which is the oldest Sacco in Kenya
Established in 1974, Stima Sacco Society is one of the oldest Deposit Taking Saccos in Kenya, undertaking both withdrawable deposits and non withdrawable deposits.
How much dividends do Saccos pay
Invest and Grow (IG) Sacco set its dividend payout rate at 12 percent for non-withdrawable deposits and 17 percent on share capital.
How do shares work in a SACCO
This is the unit/measure representing a member’s portion of ownership of the society as a co-owner.
Shares are not withdrawable but are transferable to another Sacco member upon exit of membership.
Can one join two SACCOs in Kenya
Yes. As long as the said member shall belong to no more than one Sacco Society having similar objectives as mentioned above.
How do you measure performance of Saccos
Performance of SACCOS depends on their operational efficiency (Nyanjwa, 2008). Other indicators which are used to measure performance of SACCOS include: profitability, asset quality, growth, return on assets, return on investment, rate of cost to revenue and many others.
What are the functions of SACCOs?
- For Sustainability SACCO Industry:
- 1) Strengthen the National Associations
- 2) Mainstreaming Gender Issues
- 3) Generation Gaps
- 4) Innovation/ Efficiency
- 5) Building Financial Capacities
- 6) Enhance Governance framework
- 7) Policy-Rewrite our policies
Why SACCOs performance is poor
High loan cost is amongst the biggest challenges that SACCOS face in Africa, according to research conducted by Phylis Waithira Gachau in 2019.
Poor costing and decisions related to loan management and asset management add to the issues which severely impact their performance.
Why do members of the SACCO save
In most cases, the liabilities of the members of the society is limited to the extent of capital contributed by them.
Hence, they are relieved from the fright of attachment of their private stuff, in case the society suffers finance losses or goes bankrupt.
What happens when a SACCO collapses
In the event of a SACCO collapsing or winding up, will I lose my savings or be exempted from paying outstanding loans?
The SACCO Societies Act of 2008 established the Deposit Guarantee Fund which provides for the protection of members’ deposits up to an amount of Ksh 100,000 per member in the event of collapse.
Why do SACCOs fail
“We found that the main challenges facing SACCOs include defaulting on payment of loans by members, low volume of business and poor financial practices.”
Agaba explained that whereas cooperatives are managed by elected committees, the leaders chosen often lack the knowledge required to manage them.
Which body regulates SACCOs in Kenya
The Sacco Societies Regulatory Authority (SASRA) is a statutory state corporation established under the Sacco Societies Act (Cap 490B) of the Laws of Kenya (the Act) which came into full operation upon the gazettement of the Sacco Societies (Deposit-taking Sacco Business) Regulations, 2010 (the Regulations 2010) on
Why SACCOs are better than banks
It’s no lie, SACCO loans are easily accessible compared to bank loans. Banks will require a host of documents that not all might provide before your loan is approved.
SACCOS will only require your contribution record or pay-slip to get your loan approved.
Which Sacco has the highest dividend
Top on the list of most rewarding SACCOs is Nyati Sacco, which has declared a dividend on share capital at the rate of 21% and interest on members’ deposits at 11.3O%.
What are the challenges facing SACCOs in Tanzania?
- CENTRALIZED LOCATION
- THE SOLUTION
- DELAYED SERVICE DELIVERY
- SOLUTION
- POOR MARKETING APPROACH
- SOLUTION
- REPORTING CHALLENGES
- SOLUTION
What is the difference between SACCOs and microfinance
The terms vary from institution to institution. The difference between the two is Saccos you can join alone whilst with microfinance institutions you join as a group at the same time.
Your savings are clustered together as a group and all transactions are done group wise.
How does credit cooperative work
a financial organization owned and controlled by its members, who can borrow at low interest rates from an amount of money they have saved as a group: Credit co-operatives provide financial services to poor and low-income people in many countries.
What is Kuscco
KUSCCO is the umbrella body of savings and credit cooperatives (SACCOs) in Kenya. It was registered in 1973 to advocate for a level environment in which SACCOs can operate in.
Thus, KUSCCO is actively engaged in all advocacy issues affecting growth and development of SACCOs.
What are the six types of cooperative?
- Consumer Cooperatives
- Worker Cooperatives
- Producer Cooperatives
- Purchasing or Shared Services Cooperatives
- Multi-stakeholder Cooperatives
What are the challenges facing cooperatives in Kenya
The major challenges inherent in the cooperative movement in Kenya is the poor governance and limited transparency in the management of cooperatives; lack of capacity in management, market intelligence Page 5 Page 5 of 6 and market research; weak capital base; infrastructural weaknesses (International Monetary Fund
What is saving and credit cooperative
Savings and Credit Cooperatives (SACCOs) SACCOs are cooperative financial organizations owned and operated by and for its members. according to democratic principles for the purpose of encouraging savings and using pooled. funds to extend loans to members at reasonable rates of interest and providing financial services.
How much do you earn from Safaricom shares
How much do you earn from Safaricom shares? This brings the total dividend for the year to KShs 55.69Bn (2021: KShs 54.89Bn), which represents KShs 1.39 per share in respect of the year ended 31 March 2022 (2021: KShs 1.37 per share).
What are the 3 functional types of cooperatives
Some of the major types of cooperative societies are as follows: (1) Credit Cooperative Societies (2) Consumers Societies (3) Producers Societies.
Credit society was the first type of cooperatives. Its objective was to provide credit to the members of the society.
Citations
http://andrewbibby.com/pdf/Tanzania.pdf
http://ijecm.co.uk/wp-content/uploads/2016/01/4122.pdf
https://thecooperator.news/this-is-why-sacco-loans-are-more-preferable-than-bank-loans/
