Role of SACCOs in youth empowerment

In the quest for national development and the mitigation of youth unemployment, Kenya has turned to SACCOs as a vital tool for youth empowerment. Despite being endowed with abundant resources and human capital, the country continues to grapple with high levels of youth unemployment and underemployment. Recognizing the urgency of the issue, Kenya’s Vision 2030 development plan has identified youth empowerment as a cornerstone for sustainable development.
Role of SACCOs in Youth Empowerment
SACCOs, which have been instrumental in mobilizing savings and providing credit to members for over 50 years, are now being increasingly recognized as avenues for youth empowerment. While there are over 4,000 SACCOs in Kenya with a membership exceeding 14 million, youth participation remains relatively low, often overshadowed by older members.
However, recent shifts in the economic landscape and growing acknowledgment of the potential of youth in driving economic growth have sparked a trend of increased youth involvement in SACCOs.
Initiatives like the Youth Enterprise Development Fund have played a crucial role in boosting youth participation by providing financial resources to start businesses and join SACCOs.
Youth empowerment through SACCOs involves equipping young people with the resources, knowledge, and skills needed to become self-reliant and productive members of society.
This empowerment enables them to establish businesses, create employment opportunities, and contribute to the economic growth of their communities.
Despite the promising prospects, several challenges hinder youth participation in SACCOs. These challenges include a lack of awareness among youth about the benefits of SACCOs, financial constraints preventing membership, mistrust due to reports of mismanagement, and inadequate financial literacy.
To address these challenges and promote youth participation in SACCOs, targeted solutions are essential. These include increasing awareness through marketing campaigns and digital platforms, providing financial support tailored to young people, enhancing transparency and accountability in SACCO operations, and improving financial literacy among youth.