• SACCOs have lower interest rates and these rarely change.
  • Most SACCOs in Kenya have been lending at 12% per annum, which is lower than the banks have offered even when market rates have been at the lowest.
  • Banks constantly revise their lending rates while SACCOs will rarely do this.
  • As a member of the SACCO, you earn interest on your savings which are part of what you have borrowed lowering your borrowing costs further.

While repaying a SACCO loan, a member is expected to still maintain the same level of monthly savings as they did before. This builds a saving discipline, and helps one accumulate a substantial savings base