Requirements for Sacco group account in Kenya

The Sacco Group Account is a tailored financial solution designed to facilitate the organization and management of regular monthly contributions for development, welfare, and investment groups. Members of registered self-help or development groups can open this account to pool funds and earn interest on their collective savings. Here are the requirements and benefits associated with the Sacco Group Account.
Requirements for Sacco Group Account
- Minimum Balance: A minimum balance of Ksh 500 is required to open the account.
- Interest Earning: Accounts with a minimum balance of Ksh 10,000 begin to accrue interest.
- Fixed Deposit Option: For accounts in fixed deposit, the interest rate is negotiable based on the amount and duration of the deposit.
- Access to Credit Facilities: Group members who hold accounts have access to credit facilities.
- Photographs and IDs: Two passport-sized colored photographs of officials or signatories, or photographs taken at the Financial Services Association (FOSA) during account opening, along with copies of signatories’ national identity cards are required.
- Registration Certificate and Constitution: A Registration Certificate from the Social Services department and the group’s constitution must be provided.
- Meeting Minutes: Minutes of the meeting approving the opening of the account by the group are necessary.
- No Monthly Charges: There are no monthly charges associated with the Sacco Group Account.
- Free Standing Orders: Sacco members can set up free standing orders to the account for convenient savings.
Benefits of Sacco Group Account
- Financial Organization: Enables groups to organize and manage regular contributions efficiently.
- Interest Earnings: Members can earn interest on their collective savings.
- Access to Credit: Provides access to credit facilities for group members.
- No Monthly Charges: No monthly account maintenance charges apply.
- Convenient Transactions: Free standing orders make it easy for members to contribute regularly.