May 07, 2024   by

Young people in SACCOs are decreasing in membership numbers as more SACCOs grow and expand. SACCOs in Kenya have grown over the several decades, with many providing the community with different financial solutions. Unfortunately, many young people see SACCOs as only available for the older generation and choose financial help elsewhere. Also, young people may become discouraged from investing in SACCOs since they lack proper financial guidance. Therefore, SACCOs must look for ways to include the youth, who make up the largest part of the population.

young people in a SACCO

Improving the SACCO’s Appeal to the Youth.

Each SACCO has different goals and achievements, including different methods in which they invest their contributions. Also, each SACCO has different sets of rules that govern its members and align with the SACCO mission. Thus, it is important to consider how well the SACCO will adapt to accommodate the youth and grow in numbers. SACCO moderators can use some of the following methods to increase the number of young people in SACCOs:

1. Increase Financial Literacy for Young People in SACCOs.

One of the main hindrances regarding SACCO numbers is the lack of proper financial information among the youth. Normally, young people lack proper saving skills since they lack proper guidance and knowledge in their finances. Having financial literacy will open up more doors for young people to invest and manage their money. SACCOs can engage the youth by offering them a sense of community and belonging. SACCO administrators must acknowledge that there are different age groups within their SACCO.

Therefore, the SACCO must adapt and package necessary financial information that specifically targets the youth. For example, SACCOs can hold conventions to invite the youth, both members and non-members to offer necessary financial skills. SACCOs can also seek to lower membership fees for young people to increase youth empowerment. Thus, the SACCO will show interest in accommodating the youth and fostering the growth of young people in SACCOs.

2. Improve the Transparency and Accountability of SACCOs to Young People.

Many young people are afraid of making the wrong financial decisions which may hurt their savings. Thus, SACCOs must remain transparent and offer the right information to its members, including the youth in SACCOs. The SACCO must present its members with information on its investments and how it shares dividends with all members. SACCO administrators must register their SACCO to show that the government regulates it.

The SACCO Societies Regulatory Authority (SASRA) usually registers and monitors SACCOs in Kenya. SASRA checks whether the SACCO is following the correct guidelines to avoid SACCOs administrators from mismanaging funds. SACCO members can check whether SASRA monitors and regulates their SAACO before joining the SACCO they choose. That way, young people will no longer be skeptical about their SACCO since they feel more secure and protected. The SACCO will boost its membership by gaining popularity among the youth when it offers necessary information to its members.

3. Providing Great Financial Services for Young People in SACCOs.

youth investing in SACCOs

SACCOs are not only amazing alternatives to investing and saving among the youth but they also offer other financial services. Young people in SACCOs have an alternative route to borrowing money which they can use to invest in personal ventures. Banking applications require the member to offer their pay slip and show proof of pay before requesting for a loan. However, SACCOs require that the member save for a few months before they can borrow from the SACCO. That way, the young people will save more of their money before they can start borrowing.

Although there are several financial alternatives such as banking apps, SACCOs offer competitive rates. Therefore, more young people will opt to save and borrow from SACCOs rather than using traditional options. SACCOs can offer affordable credit to young people and increase their access to better financial solutions. This is a win-win situation for the SACCOs and the young people.

4. Implementing Digital Platform Strategies for the Youth.

digital platforms for the youth in SACCOs

Technology is a fast-paced environment in which SACCOs can grow and capture the attention of many young people. Thus, SACCOs must aim to incorporate appropriate digital technologies for optimum results in growing their numbers. Advertising the SACCO’s services through digital platforms increases the chances of acquiring younger members. The SACCO can showcase its many qualities and attributes which the young people can view and interact with on social media. Many young people use social media frequently, making it important for SACCOs to incorporate such platforms.

Major SAACOs in Kenya are now moving their operations to more secure and safe digital platforms. Digitization of SACCOs offers better services that SACCOs cannot achieve manually. One of the best platforms is a SACCO group management software which oversees and monitors all SACCO operations in real-time. SACCO administrators can also put up key risk management protocols while using the software to mitigate risks that may occur. Thus, the SACCO shows its new members, especially young people, that their investments are safe in the SACCO.

For example, the SACCO administrators can reach more members without meeting them physically. SACCO administrators can also manage the members’ contributions, loan repayments, and dividends in one platform. Therefore, all SACCO members can make transactions anywhere, at any time in a few seconds. Using digital platforms will offer more financial inclusion, especially for the youth. Young people are more tech savvy, making it easier to maneuver online digital platforms.

Another great advantage of using SACCO group management software is increasing data security. Data safety is crucial in maintaining a SACCO since members look for SACCOs that properly secure their data. Data breaches will gravely harm the SACCO and can lead to loss when its data falls into the wrong hands. Thus, young people will move towards a SACCO that shows responsibility and accountability for their data.

5. Engaging in Corporate Social Responsibility Programs.

corporate social responsibility programs

Corporate Social Responsibility (CSR) programs are programs that SACCOs can participate in and engage the community. Therefore, the SACCO will build integrity and trust with community members by engaging in empowerment activities. SACCOs usually aim most programs towards the youth and encourage them to save and invest with the SACCO. Thus, SACCOs will show an uptake of new youth members as they continue interacting with the community.

Some of the main activities under the CSR program include youth empowerment, financial literacy, and environmental management. The SACCO shows that it has the community’s interest at heart, ensuring that the community benefits from the SACCO.


Young people in SACCOs play a huge role in increasing the turnover contributions of all SACOs countrywide. However, the newer generation seems to lack faith in SACCOs, mainly due to the lack of financial literacy. SACCOs are now taking a huge role into adapting further and accommodate better features to include the youth. Using SACCOs allows young people to cultivate a positive savings culture, opening up more financial opportunities, such as borrowing credit.

One of the best ways to include the young people in SACCOs is by digitizing the SACCO. SACCOs should advertise themselves through social media sites to increase media presence among the youth. Also, using SACCO management software allows SACCO moderators to manage the members SACCO operations in real time. That way, young people will have the confidence to join, save, and invest in SACCOs.

Categorised in:

This post was written by Joy Wanjiru

Please Subscribe and get Notified when new articles are posted