Features & Sacco Leadership

How SACCOs create employment in Kenya

How SACCOs Create Employment: Importance of SACCOs in the Kenyan Economy

As Kenya grapples with an overall unemployment rate of 12.7 percent, the plight of the youth, constituting 35 percent of the population, remains particularly dire, with an alarming 67 percent unemployment rate among 15 to 34-year-olds.

In the face of this daunting challenge, SACCOs (Savings and Credit Cooperative Societies) emerge as a beacon of hope, playing a pivotal role in creating employment opportunities and fostering economic empowerment across the nation.

How SACCOs Create Employment

One of the primary ways SACCOs contribute to employment generation is through direct wage employment.

Working cooperative societies within the SACCO framework provide meaningful employment to individuals, offering not just a source of income but also a platform for cultivating a savings culture.

This savings behavior serves as collateral security, enabling employees to access larger loans for personal and entrepreneurial ventures, thereby promoting further investment and economic growth.

Moreover, SACCOs serve as catalysts for self-employment, empowering members to pursue entrepreneurial endeavors through quick and affordable business loans.

These financial facilities facilitate the establishment of new businesses, the recovery of businesses following setbacks like losses or natural disasters, and the provision of short and long-term credit solutions to address various needs.

By not only providing financial support but also creating marketing opportunities and negotiating favorable rates, SACCOs enable members to thrive in the competitive business landscape.

Further, SACCOs extend their impact beyond their membership base, indirectly influencing employment opportunities for non-members through the ventures they support.

By nurturing and backing various business ventures, SACCOs stimulate economic activity across industries, thereby generating employment opportunities for a wide array of individuals.

For instance, businesses involved in packaging, stationery, warehousing, and other sectors play integral roles in supporting SACCO operations and member businesses, consequently contributing to job creation on a broader scale.

SACCOs serve as engines of employment creation, offering a multidimensional approach that encompasses direct employment, self-employment opportunities, and support for business ventures.

Andrew Walyaula
Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Andrew Walyaula

About Author

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Leave a Reply

You may also like

Factors to consider before taking a loan in Kenya: The risks of being a guarantor: what you need to know: SACCO Loan Requirements
Features & Sacco Leadership

Factors to consider before taking a loan in Kenya

The surge in borrowing activities across Kenya highlights a growing inclination towards loans among its populace. With an array of
What is the importance of credit policy in Saccos: Benefits of Sacco membership for small business owners: How to increase Sacco membership: Why Sacco loans are cheaper: Factors contributing to member exits from SACCOs: How to exit from a SACCO
Features & Sacco Leadership

Why Sacco loans are cheaper and more accessible

Kenyan individuals and households are increasingly turning to Saving and Credit Cooperative Organisations (Saccos) and microfinance banks for loans, rather
error: Content is protected !!
×