SACCOs (Savings and Credit Cooperative Organizations) are member-owned financial institutions that pool resources to provide affordable credit and reliable saving opportunities. Unlike commercial banks, SACCOs are driven by the needs of their members, not profit. They are built on cooperative principles, where every member has a say in decisions, usually through voting rights at general meetings.
These cooperatives are crucial in promoting financial inclusion, especially among communities that may not have access to traditional banking. From rural farmers to urban workers, SACCOs serve diverse members by understanding their local needs and offering personalized financial solutions. By saving together and accessing credit collectively, members improve their living standards and economic security.
SACCOs have proven effective in poverty reduction, economic empowerment, and entrepreneurship support. Their success depends on trust, accountability, and active participation. As grassroots financial institutions, SACCOs foster community development by circulating wealth locally and encouraging a culture of financial responsibility.