Interest Rates Charged By Kenyan Saccos


Saccos are becoming the choice of many Kenyans because they provide cheap loans on top of enabling individuals to own them in form of shares and also investments in real estate. Interest charged on loans is by far lower than what banks charge.

To begin with, I would encourage anyone intending to take loans to consider having shares in a SACCO and later apply for a loan. This will ensure you get up to 4 times your savings with low interest rates.

Our research show that more than 90 percent of SACCOs in Kenya charge less than 13 % interest rates, but most SACCOs charge a flat rate of 12 % per annum,meaning that you will comfortably pay 1 % per month, which is reasonable. While it is this easier with SACCOs, banks charge over 18 % interest rate per annum.

There are banks which charge up to 24 % interest rate per annum.

In my own judgment, it’s better to take a loan from SACCOs than banks in Kenya

Some of the best SACCOs to join in Kenya include Ushuru, Mwalimu, KUSSCO,Harambee ,Mhasibu,Hazina and Stima.






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