Save members of troubled saccos financial loss

The rationale behind formation of Savings and Credit Co-operatives (Saccos) is economic empowerment. People with little resources individually pool them to commence undertakings or make savings that are beneficial in the long run, especially when members have access to loan facilities.

Saccos for small-scale farmers, for instance, have helped them to market their produce locally and internationally at competitive prices. To a large extent, they shield farmers from exploitative middlemen. That, however, is in an ideal sense. There are many cases of sacco managements taking advantage of regulatory lapses to fleece unsuspecting members.