Business and FinanceBusiness and Finance
Wed, March 5, 2025

How to Determine Financial Stability of SACCOs in Kenya: Factors to Consider Before Joining


Published on 2025-03-05 01:40:50 - Tuko
  Print publication without navigation

  • When considering joining a SACCO in Kenya, assess its financial stability to ensure your investment is secure. Key factors to evaluate include its capital base.

The article from Tuko.co.ke discusses how to determine the financial stability of Sacco's (Savings and Credit Cooperative Societies) in Kenya before deciding to join one. It outlines several key factors to consider: Regulatory Compliance - ensuring the Sacco is registered with SASRA (Sacco Societies Regulatory Authority); Financial Performance - looking at the Sacco's financial statements for profitability, liquidity, and solvency; Membership Growth - a growing membership can indicate trust and stability; Loan Default Rates - lower rates suggest better financial health; Interest Rates - competitive rates can reflect the Sacco's financial strength; Dividend Payouts - consistent and high dividends are a good sign; Transparency - how open the Sacco is about its operations and finances; Technology and Innovation - adoption of modern banking technologies; Customer Service - quality of service can reflect internal management; and Reputation - feedback from current members and public perception. The article emphasizes the importance of due diligence to ensure one's savings and investments are secure.

Read the Full Tuko Article at:
[ https://www.tuko.co.ke/business-economy/580916-how-determine-financial-stability-saccos-kenya-factors-joining/ ]