Saccos have become a more specific investment vehicle in Kenya mainly because the Saccos interest rate for loaning is more affordable, return on deposits is higher, and dividend payouts are higher, making most Kenyans opt to put their money in them. This blog explores the six best saccos in Kenya for investments for those seeking to invest and attain financial freedom and independence.
Saccos generate an average of 8,000 to 10,000 housing units and contribute the equivalent of the Ksh 1.5 Trillion GDP to the country every year. On the other hand, they offer a high dividend return, with some Saccos paying up to 25%. Nevertheless, determining which Sacco to get your financial dreams is all about Sacco’s security, reputation, financial performance, membership base, interest rates, and products and services.
This is quite a load, but don’t you worry. Our comprehensive guide below provides the top 6 best saccos in Kenya for investments plus the best criteria to pick the best sacco for the maximum ROI.
Table of Contents
Factors to Consider when Choosing the Best Saccos in Kenya for Investments
When choosing the best investment Sacco in Kenya, consider these factors to ensure your money is safe and you get the maximum return on investment (ROI):
1. Safety and Security
Ensuring your investment is safe and secure should be your number one concern. Look for a Sacco characterized by a more robust risk management structure, disciplined internal controls, and good governance. Besides, ensure that the Sacco is under the control of the Sacco Societies Regulatory Authority (SASRA) and operating within the framework. Moreover, your chosen Sacco must have firm control mechanisms, secure IT systems, and a good reputation for safeguarding member’s funds over the years.
2. Management Reputation
Sacco’s reputation is critical. For example, you can not anticipate getting your returns from a Sacco run by a controversial person such as David Gakuyo, whose Ekeza Sacco scandal had Kenyans lose an estimated 1 Billion. You must research Sacco’s past and reputation and how they handle customer complaints and disputes. Online reviews can be of enormous help, too, and ask for recommendations from friends and family who have invested in the Sacco before.
To be safer, choose SACCOs, which are known to adhere to ethics, integrity, and transparency. Additionally, search for a Sacco with experienced, qualified, and accountable leadership with a clear idea for growth and a record of effective decision-making.
3. Products and Services
A good investment Sacco should have diverse investment options, such as fixed deposits, regular savings accounts, asset financing, and loan facilities. This variety allows you to diversify your investments and cater to your financial goals.
4. Membership Area
A Sacco’s membership area and enrollment criteria ascertain whether or not you can be a member of the Sacco. For example, some saccos can be open to the public. In contrast, others only target people from one specific group, such as employees of a particular workplace or members of the same profession. Furthermore, some are limited to residents of a specific geographical location, whereas some are open to members from across the borders of Kenya.
Consequently, pick SACCOs with an extensive membership base and areas matching your tastes and way of life.
5. Financial Performance and Stability
Analyze Sacco’s financial statements, liquidity ratios, and growth trends to assess its economic stability and performance. Look for Saccos with a solid asset base, consistent profitability, and a history of prudent risk management policies.
6. Interest and Dividend Rates
One of the main reasons for being a Sacco member is to earn attractive returns. You must look into Sacco’s interest rates on deposits and dividends on share contributions. Besides, you need to look at the dividend payment frequency of the Sacco to evaluate its income-generating capacity. High rates usually mean more profits, but ensure that the rates are not too high and align with Sacco’s performance.
Use our free savings and investment calculator tool to pick the most profitable sacco
A smart move to pick the best investment sacco is using EduPreneurr’s free Savings and Investment Calculator Tool. Through this feature, you can estimate how your savings can compound over the long term. You only have to input your initial balance, monthly savings of the Sacco, the interest rate, and the investment duration. Then, the calculator displays the final balance, total contribution, and interest you would earn.
Thus, this tool makes comparing different Saccos easier. You just enter the interest rate for each Sacco and check which one gives you the highest final closing balance. Thus, you will be able to choose the Sacco that has the highest returns on your investment. Try out this handy calculator to make a wise investment choice!
The six Best Saccos in Kenya for Investments
- Tower Sacco
- Stima Sacco
- Kenya Police Sacco
- Mwalimu National Sacco
- Imarisha Sacco
- Unaitas Sacco
1. Tower Sacco
Tower Sacco is among the best Saccos in Kenya for investments due to its financial overviews, including stable returns, attractive interest rates, and deposit dividends. Ensconced at the pinnacle in 1976 by primary school teachers, it has amassed over Ksh 20 billion in assets and memberships of over 250,000 people who pay a minimum of KES 500 monthly. Such expansion is supported by the credit union’s comprehensive system of 29 offices and 300 agents targeted to provide access and convenience throughout different city districts.
From the financial perspective, Tower Sacco has demonstrated robustness with an asset base of KES 23.23 billion reported at the end of December 31, 2023, and member deposits that have hit KES 18.83 billion. This is an essential determinant of Sacco’s survival, as it signifies its capacity to preserve members’ investments and continue its expansion. For the given period, Sacco’s revenue was KES 3.49 billion, representing a substantial 22% growth. Profits followed, an increase of 35% from 2022, which took it to KES 2.4 billion. This situation signifies the capacity of Tower Sacco to generate value for its members after making a 20% dividend payment and interest from deposits at 13%.
Tower Sacco distinguishes itself not only by its financial results but also by its contribution to its members’ security and community development. It uses string security measures and fintech solutions to improve member comfort and security. Tower Sacco’s commitment to social responsibility is strongly manifested in its Corporate Social Responsibility (CSR) programs, one of which focuses on providing financial support to educate children from poor households (33 such kids were supported in 2023).
2. Stima Sacco
Stima Sacco is one of Kenya’s oldest Saccos, founded in 1974. In addition, it is among Kenya’s leading investment options, boasting excellent financial performance and member attention.
In 2023, Stima Sacco expanded greatly in all spheres of its financial sectors. The Sacco sustained resource mobilization to strengthen its asset base through capitalization by 10% to KES 59.2 billion. This strong asset-backing capacity of Sacco enables it to keep extending its services to its members.
Stima Sacco’s net interest income increased by 30%, reaching KES 4.5 billion. Nonetheless, the excellent interest income sustainability here shows Sacco’s ability to raise revenue from lending while maintaining a respectable margin for the members.
The financial surplus grew by a staggering 44.9% to reach KES 1.4 billion in 2023, marking the best year for Stima Sacco of all time. Profit growth on such a massive scale signifies solid financial performance and intelligent decision-making.
Additionally, Stima Sacco demonstrated its commitment to members’ well-being by providing 11% interest on savings, which rivals other investment mechanisms, making depositors happy. Besides, the Sacco also paid a 15% dividend on share capital; therefore, they received a satisfactory income on share capital. Additionally, between 2022 and 2023, the credit portfolio of Stima Sacco grew by 9.3% to KES 45.1 billion in lending to members. This spike in loan transactions signifies Stima Sacco’s determination to respond to the financial targets of its members and the economic goals of its community.
Nevertheless, Stima Sacco’s solid financial performance, characterized by fast asset growth, net interest income, net surplus, lending portfolio, competitive interest rate, and attractive dips, makes it one of the best investment Saccos for Kenyans.
3. Kenya Police Sacco
One of Kenya’s oldest (founded in 1971) and third-best Saccos for investments is the Kenya Police Sacco, owing to its outstanding financial performance and royal commitment to serving its members.
Kenya Police Sacco performed impressively in the last financial year in terms of core economic indicators. Sacco’s total assets base increased by 10% from 2022’s value to KES 54. 2 billion, a sign of the efficiency of management and utilization of available resources. This solid asset base and the institution’s ongoing value delivery to the members confirms Sacco’s reliability.
The stellar performance of the Kenya National Police Sacco was its profitability in the financial year ended December 31 2023, and registering a net surplus of KES 2.47 billion, a key achievement. This remarkable performance eventuates from Sacco’s well-managed financial accounts and informed decision-making, consequently bringing higher returns for the cooperative members. The loan portfolio of Kenya Police Sacco stands at KES 46 billion, showcasing its commitment to meeting the financial demands of its over 72,000 members.
Moreover, the Sacco has a good reputation for caring for its members. Kenya National Police Sacco has a competitive deposit rate of 11% and a dividend rate of 17% for the year that ended on December 31 2023, to the tune of KES 599 million.
4. Mwalimu National Sacco
Mwalimu National Sacco takes the front stage as one of the best investment Saccos in Kenya due to its formidable financial performance. It recorded a commendable asset base of KES 64.06 billion in the year ended December 31 2023, which stood out as the largest among all Saccos in Kenya. Having such a huge asset base, which holds solid for Sacco, can keep making it possible for its members, who are over 123,000 in number, to experience the best value for their money.
Mwalimu Sacco’s penetrative further realizes its financial strength through its profitability, where Sacco reported KES 7.74 billion in the past financial year. This is a clear testament to Sacco’s highly competent wealth management and strategic decision-making abilities, resulting in better returns for its members.
The loan portfolio of the Mwalimu National Sacco has also continued to grow substantially, with the total loan book amounting to KES 47.29 billion. This growth in lending activities proves the Mwalimu National Sacco commitment to availing different financial services to its members, who are majorly drawn from the education sector.
Besides its healthy financial strength, Mwalimu National Sacco has been recognized as one of the best dividend-paying Saccos in Kenya. It offered a competitive 11.2% dividend rate in 2023, broadening its appeal to investors in the cooperative sector. Additionally, Mwalimu Sacco conducts savings and share drive promotions. For instance, in early March 2024, Mwalimu National Sacco gifted one member, Tom Charigah, a 3-bedroom house worth KES 3.2 million for achieving a KES 500,000 share capital in an ongoing Savings Promotion Scheme. All these differentiate the Mwalimu National Sacco as a go-to for investors keen on a stable and profitable investment within Kenya’s Sacco industry.
5. Imarisha Sacco
Imarisha has demonstrated itself to be another quality investment avenue in Kenya, showing superior financial results and upholding its customer base against the odds.
Imarisha Sacco reported stunning financial performance during the last financial year, with earnings reaching KES 2.1 billion. This impressive showing is a testament to its strong financial management and business strategy, contributing to more competitive interest rates for the members.
Moreover, the value of Imarisha Sacco’s assets has also seen a marked rise of 10% from 2022 up to KES 21.7 Billion by December 31 2023. This solid asset base is a bedrock for Sacco’s ongoing quest to offer value to its members, whose number has shot to 140,000 members nationwide.
The Sacco’s loan portfolio grew by 12.7% from the last year and now stands at KES 17.4 billion. The expansion of lending activities by Imarisha Sacco is a testament to the organization’s commitment to satisfying the varied needs of its members from many sectors.
Imarisha Sacco’s dedication to the welfare of its members is further demonstrated by its competitive interest rates on savings and the issuance of attractive dividends, which is a longstanding tradition. In 2023, the Sacco paid dividends at a rate of 14.06%. This helps create a compelling value proposition, especially for investors who want a stable and profitable investment in the Kenyan Saccos sector.
6. Unaitas Sacco
Unaitas Sacco is no stranger to Kenya’s co-operative scene. It is ranked as one of the best Saccos in Kenya for investment purposes. The Sacco made evidence of its financial health last year by posting profits of Ksh.3.27 billion. Furthermore, Unaitas Sacco’s asset base has been skyrocketing, recording KES 20.40 billion in assets in the financial year 2023. This Sacco can provide continued service delivery to its 300,000+ members nationwide from this sound base.
Sacco’s loan portfolio has also experienced remarkable growth in that the total loan book reached KES 11.02 billion. Nonetheless, this testifies to Unaitas Sacco’s zeal to fill the gap in the financial needs of its members from various sectors.
Unaitas Sacco’s stance on member welfare is further underscored by its market-beating interest rates on deposits and a history of handing back handsome dividends. Such attributes strengthen investors’ confidence in investing capital to earn a reliable and constant income within the cooperative sector.
Having had spectacular financial performance, a healthy capital base, a surging loan portfolio, and a membership focus, Unaitas Sacco, without doubt, is among the top-tier returns-generating options for Kenyans seeking to leverage on the Sacco opportunities in Kenya in particular.
Final Thoughts
The Kenyan sacco sector has become a viable and flourishing destination for individuals looking to build riches through savings and investments. Industry leaders like the Tower Sacco, Stima Sacco, Kenya Police Sacco, Mwalimu National Sacco, Imarisha Sacco, and Unaitas Sacco outshine the rest in their remarkable financial performance, stability, high dividend rates, and attractive interest rates on savings.
To choose the best investment Sacco between them, use our free Savings and Investment Calculator Tool to assist you in making informed investment decisions. This impressive calculator provides you with the projected final balance, total contribution, total interest amounts from your initial balance amount, monthly donation amount, Sacco’s interest rate, and the investment duration.
In other words, this free calculator tool makes analyzing your investment growth potential easier, which gives you insight into the best Sacco that will maximize your returns. Thus, to choose the best investment Sacco in Kenya, you must align your objective goals with your preferred Sacco savings and investment product interest rates. This powerful tool empowers you to make data-driven decisions, aligning your financial goals with the most suitable investment opportunities within the vibrant sacco sector.
Don’t let uncertainty hold you back from maximizing your investment. Use our free savings and Investment Calculator now and unlock a world of financial possibilities tailored to your unique goals and aspirations.
Read also: 7 Best Saccos in Kenya for Loans
