What to know before joining a SACCO in Kenya

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before joining a SACCO

What to know before joining a SACCO (Savings and Credit Cooperative Organization) in Kenya, depends on several important factors that should considered to ensure that you make an informed decision. SACCOs are financial institutions that provide savings and credit services to their members, and they can be a great way to save money, access credit, and invest.

Here are some things to know before joining a SACCO in Kenya:

1. Regulatory compliance:

What to know before joining a SACCO in Kenya - sasra compliance

Ensure that the SACCO is registered and regulated by the relevant authorities, such as the SASRA (SACCO Societies Regulatory Authority) in Kenya. This ensures that the SACCO operates within the legal framework and follows the required guidelines for its operations.

2. Membership Requirements

Check the eligibility criteria for becoming a member of the SACCO. Some SACCOs have specific membership requirements, such as being employed in a particular sector or residing in a specific locality. At RG Sacco, we accept membership from the employed, self-employed, Jua kali artisans as well as those in business. Click on http://www.rg.co.ke to become a member.

3. Financial Stability:

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Assess the SACCO’s financial health and stability. Review their financial statements, loan portfolio, and membership growth over the years. A stable SACCO is more likely to provide reliable services and returns on your savings. RG Sacco was registered in 2017 and has been growing steadily financially.

4. Services Offered:

Understand the range of services the SACCO offers. Besides savings and credit facilities, some SACCOs provide other benefits like insurance and investment opportunities. At RG Sacco we also offer asset finance, project finance as well as mortgage (home ownership loans).

5. Interest Rates:

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Compare the interest rates on savings and loans offered before joining a Sacco in Kenya. At RG Sacco, we have lower interest rates on loans and higher interest rates on savings to make the sacco more favorable for members.

6. Fees and Charges:

Inquire about any membership fees, transaction charges, and other costs associated with using the SACCO’s services. Transparent fee structures are important to avoid hidden costs. At RG Sacco we don’t charge any monthly fees such as ledger fees.

7. Dividend Policy:

sacco Dividend

Learn about the SACCO’s dividend policy. Some SACCOs share profits with members through dividends, which can be an additional benefit of membership.

8. Governance and Management:

Research the SACCO’s leadership, governance structure, and management team. A well-managed SACCO with a transparent decision-making process is likely to be more reliable and member-focused.

9. Member Reviews and Reputation:

Seek feedback from current or past members of the SACCO. Online reviews or word-of-mouth recommendations can give you insights into the SACCO’s reputation and customer satisfaction levels.

10. Accessibility and Convenience:

Consider the SACCO’s location and accessibility, especially if you need to visit their offices frequently. Additionally, check if they offer convenient online banking services.

11. Insurance Cover:

sacco insurance cover

Some SACCOs provide insurance cover for their members, which can be beneficial in times of unexpected events. Inquire about the insurance benefits and coverage provided.

12. Social responsibility:

Some people prefer to join organizations that actively contribute to social and   community development. If this is important to you, research those that have involvement in community projects.

Therefore, by thoroughly researching and understanding these aspects of a SACCO, you can make an informed decision and choose the one that best fits your financial needs and goals. It’s always a good idea to seek advice from financial experts or individuals with experience in dealing with SACCOs before making your final decision.


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