Harambee Sacco chief operating officer Renson Mwandoe in Mombasa on Tuesday /BRIAN OTIENO
Savings and Credit Cooperatives Organisations provide an opportunity for financial breakthrough that the Gen Z should embrace, industry leaders said on Tuesday.
They said Saccos offer opportunities to build financial independence and free people from the traps that unscrupulous financial institutions subject them to.
However, it is saddening that youth are not interested in Saccos yet they want to live lifestyles that require a substantial amount of expendable money.
“The young people are not very interested in joining Saccos not knowing that they offer a pathway to financial breakthrough, including accessing loans with low interest rates for starting small and medium enterprises (SMEs),” Harambee Sacco chief operating officer Renson Mwandoe said.
He spoke during a Harambee Sacco millionaires’ breakfast and Coast region high-savers roundtable in Mombasa.
Kenyans, Mwandoe said, need to embrace the saving culture for long-term economic empowerment and Saccos offer the best pathway for that.
“Saccos offer financial services and support for youth and the general public’s development. They aim to empower youth through savings, loans and mentorship, promoting entrepreneurship and economic growth. They play a crucial role in fostering financial inclusion and self-reliance among young Kenyans,” he said.
Most Saccos have now digitised their services, particularly targeting the youth who are increasingly tech savvy.
“Youth who have joined Saccos are benefitting as they are able to meet their financial obligations and equally invest in other business ventures,” the COO said.
Mwandoe, however, lamented the demand for higher dividends by members, even those who do not patronise the services.
Mombasa county director of cooperative societies Nelson Nyoro said the government is pleased with the good work Saccos are doing in ensuring Kenyans embrace the saving culture.
He allayed fears that Saccos are not safe and urged the public not to trade in fear of corruption or conmanship.
Nyoro said the government is vigilant in ensuring all the Saccos operating in Kenya are registered and follow stipulated guidelines.
Elina Mdawida, a member of Harambee Sacco, said she joined and started saving when she got employed, a move that has helped her attain financial freedom as she continues with her saving journey.
She said women at the grassroots are now saving through informal groups commonly known as chamas and once they get money from the merry-go-round, they channel it to the Saccos as savings.
Mdawida said her future as a retiree is bright since she can start a business from her savings when she retires that will cushion her in her old days.
“We thank Saccos as women since they offer affordable savings and loans to even those who may not have access to traditional banking. I personally enrolled my child and friend into Sacco and they were offered financial education and investment strategies when joining,” she said.
