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The Today Sacco

June 1 @ 8:00 am - 5:00 pm


Saccos are potent engines of entrepreneurial growth through the mobilization of capital and the creation of credit to members.

 A historical perspective

The world of Saccos has however experienced tremendous changes over the years. They started off as sector or employer-based saving and credit groups that raised their capital from members’ contributions. From this pool of funds, they created credit to the same members using a multiplier on the number of shares the borrower had contributed, secured by shares of guarantors who were also members. The main consideration for the credit was that the total shares of the borrower and the guarantors were not less than the loan created.

Over time, this business model became restrictive to growth and, in a number of instances, unviable. The sectors in which the saccos drew their members from shrunk or were beset with management challenges that saw coffee, tea, milk and other farming sector societies break up. In other cases, employer-based saccos saw their numbers shrink following staff layoffs. Still in other cases, the sector or employer base was not growing in numbers in tandem with the growth aspirations of the saccos.

Because of the aforementioned and other reasons, saccos started looking outside their traditional bases for members, capital, deposits, and income growth. To achieve this shift, the saccos had to first change their names to remove the sector or employer base tag. Nyeri Teachers Sacco became New Forties Sacco, Baringo Teachers Sacco changed to Boresha Sacco, and South Imenti Tea Growers SACCO rebranded to Yetu Sacco. Kilifi Teachers Sacco changed to Imarika Sacco while Kipsigis Teachers Sacco was renamed Imarisha Sacco and Embu Farmers Sacco changed to Nawiri Sacco. Kirinyaga District Farmers Sacco rebranded to Fortune Sacco. Within a very short time, all saccos had shifted their focus and their names from their traditional base to the open market.

The challenges

The shift from their traditional markets has exposed saccos to a number of challenges that hinder them from professionalizing their operations and hence taking full advantage of the new and rich market horizons they have entered into. The two main challenges are:

 Leadership and Corporate governance challenges

Board members are elected from the membership of the saccos. Competence and professionalism are not the key considerations during the elections.

  1. Unskilled staff

The saccos have entered into the cut-throat world of banking where fighting for deposits and borrowers is the order of the day. Yet most staff are a carry-over from the old Sacco where professional lending was not a consideration. This exposes the saccos to new credit risks that were not experienced in the traditional markets.

These two challenges impact on Sacco’s ability to raise capital, to create and manage a quality loan book and to professionalize their operations. This also impacts on career growth of the employees.

Kenya School of Credit Management (KSCM) intervention

Kenya School of Credit Management is an Institution of its kind in Kenya, training institutions on the latest tools to manage CREDIT. We are registered with the Ministry of Education and National Industrial Training Authority. Our Career Development Program is examined by KASNEB, one of the leading and most recognized examination bodies in Kenya.

 As the premier institution in credit training, KSCM has trained saccos across the country in addition to banks, and microfinance institutions. We are also popular in training other institutions that sell goods and services on credit.

Our areas of focus when training saccos include:

Our areas of focus when training saccos include:

Our areas of focus when training saccos include:

  1. Sacco Boards Members
  • Corporate governance
  • Leadership and strategic direction
  • Risk management
  1. Sacco Managers and Heads of departments
  • Risks management
  • Credit formation
  • Managing a quality loan book
  • Statutory guidelines
  1. Sacco Credit Staff
  • The modern approach to lensing business
  • Credit creation
  • Principles of lending
  • Debt Recovery
  • With our rich experience in credit training, spanning over 20 years, we are best placed to contribute in enhancing skills in saccos.

Patrick K. Kairu

Director of Studies




June 1
8:00 am - 5:00 pm

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