A guide to critical Sacco matters and why Stima Sacco is a worthy choice

By Nation Reporter

You are a young lad or lass, and you’ve heard the word Sacco, right? Okay, not the 'Sacco' you see emblazoned on matatus (commuter vans) as part of their names. I mean the savings and credit cooperatives (Saccos) where people save money and get loans and dividends, and, voila! life improves.

Have you seen someone making a massive investment using a Sacco loan or dividend and entertained thoughts that this might be the so-called Illuminati power at play? Well, it’s not that. Let's discuss three things you should know about proper Saccos.

1. You join by paying a registration fee, share capital, and then you make regular remittances as savings.

Registration fees: Saccos get their strength by implementing the power of many. The more the members, the stronger it gets and the better for everyone in it. The registration fee for Stima Sacco, for instance, is just Ksh500.

Share capital: For you to be a member entitled to dividends every year, you need to pay the share capital. What is that? Okay… let’s look at it as a jointly owned house. Let’s assume 10 people have joined hands to build the house. And let’s say each of those 10 brought one pole to be the pillar of the house. Each of those poles will be part of the house forever. It is inconceivable that one of the 10 owners will one day say they want their pole back. That won’t be possible because it is part of the core structure of the house.

In the case of Saccos, the share capital is like those pillars. It is money invested into the organisation and it is not refundable, though it can be transferred to a person’s next of kin – much like your child can take your space in a house you helped build. 

At Stima Sacco, the share capital is Ksh25,000 for individuals. It is a similar amount for those opening joint accounts. Companies that join the Sacco are required to pay Ksh50,000 in share capital.

Once this is paid, and with your membership kept active, you get to enjoy dividends at the end of the year. You will be the next person to paint the town red whenever dividends are out.

Monthly contributions: Monthly contributions are the backbone of the Sacco structure. The amount you save is your passport to a loan because it combines with other people’s savings to make a strong organisation. It is also the amount that helps you guarantee another member and enables others to be your guarantors when you need a loan.

For Stima Sacco, the minimum contribution per month is Ksh1,000 for individuals; same case with those with joint accounts. Corporate members need a minimum of Ksh5,000 a month. Mind you, these deposits are non-withdrawable, but they entitle you to a loan up to four times what you have saved.

2. Why a Sacco is good for anyone – from ‘hustlers’ to the high-flying

Unlike banks, which operate with a profit in mind, Saccos don’t aim at profits but are mandated to provide financial services to members. Any surplus made is shared among members depending on their contributions, and that means the more you put into the Sacco, the more you receive when the time comes to share the surplus made. This makes such an arrangement a win-win situation.

3. How to join Stima Sacco

Any Kenyan citizen, regardless of where they live and work, is welcome to Stima Sacco. By the way, Stima Sacco was in 2021 ranked the best dividend-paying Sacco in Kenya. It was not by fluke, but because of the Sacco’s solid systems and commitment to give members value for their money. Stima Sacco has been around since 1974, and it has perfected its systems over time.

To join, you will be required to provide your national ID or valid passport and a KRA Pin. You will fill a form in which you will indicate your next of kin, the amount you will be saving per month, whether someone referred you to the Sacco, among others.

At registration and any time during your membership, you can sign up for M-Pawa, the service that allows you access to a number of Stima Sacco services by dialling *489# on your mobile phone. Through that, you can withdraw funds to your M-Pesa, buy airtime using your Sacco balance, pay for a number of bills, transfer funds, to mention but a few.

In a nutshell, you are empowered all round with Stima Sacco. Visit their website to learn more.