Savings and Credit Cooperatives Organizations (SACCOs) leaders have urged Generation Z to join cooperative societies to build financial independence and free themselves from the debt web under unscrupulous financial institutions.
Speaking during a Harambee SACCO member’s event in Mombasa the Chief Operation Officer Renson Mwandoe said that young people are not very interested in joining SACCOs not knowing that they offered a pathway to financial breakthroughs, including access to loans with low interest rates for starting Small and Medium Enterprises (SMEs).
Mwandoe said SACCOs offered an important pathway to financial independence and a chance to venture into entrepreneurship as young people embraced the culture of saving and group investment.
He noted that there was a need for Kenyans to embrace saving culture for long-term economic empowerment saying aging was a very gradual process with the future being uncertain.
“SACCOs have come in to 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,” Mwandoe said.
He added that they are trying to entice the young people to ensure they don’t get entangled to the debt web by unscrupulous lenders.
However, he said the youth that have already joined SACCOs, are benefitting as they are able to meet their financial obligations and equally invest in other economic activities.
At the same time, he outlined the big challenge that is ailing the SACCO sector being the demand for higher dividends by members, adding that some members do not patronize the services yet they want huge dividends rate.
Director Cooperative Societies Mombasa, Nelson Nyoro, said that the government was pleased with the good work the SACCOs were doing in ensuring Kenyans embrace a saving culture.
Nyoro said that SACCOs were safe and members should not trade in fear of corruption or conmanship as the government was vigilant in ensuring all the SACCOs operating in Kenya were registered and followed stipulated guidelines.
Elina Mdawida, who is 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.
Mdawida said women at grassroots were now saving through informal groups known as “chamas” and once they got money from the merry go-round they channel it to the SACCOS as savings.
She noted that her future as a retiree was 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.
By Chari Suche
