Operational Aspects

Operating a SACCO is basically the same as operating your own bank, on a co-operative basis. The business is buying and selling money within a group of people who work in the same place, or as in some cases, members of the same community. It is not a Stokvel. But Stokvels could become members of your SACCO. It is not a burial society. But a burial society could become a member of your SACCO. It is not a private company, but it is a privately owned co-operative. It is not an insurance company, but you will enjoy the benefit of loans insurance.

There are no management fees or commission to pay to anyone or any interest outside the co-operative movement. As a member of the co-operative you are an owner and as such you retain all the profits of the organisation. You also decide what to charge for interest on loans and decide what to pay on savings. You decide what to do with the surplus. You are accountable only to yourselves, the members of your Savings and Credit Co-operative.

To run a SACCO a number of things will need to be organised, much of which depends on your group’s ambitions to grow the SACCO. The SACCO will need to choose a name, open a bank account, and decide where it will operate from, decide who will do the bookkeeping and promotion and develop the policies for your SACCO