Youth SACCO Takes a Leap

"no security is required to borrow loans, members guarantee themselves, members are the owners of the organisation, and therefore enjoy the dividends"

Youths have woken up from being young and dependent, from high expectation, from building on political promises, from poor saving culture, and formed Kericho Youth Sacco. Before now youths –people of high potential, driven by curiosity and confronted by the future –used the conventional banks to save, borrow loans and finance theirs tenders.

A Jua kali enterprise funded by Kericho Youth Sacco

This is the story of youth groups who did not have objectives before 2008, when leaders had made them believe they are the leaders of tomorrow, which is a possibility. After coming together they got a sponsor who helped them only when they had started saving: a shilling for a shilling.

After 2008 violence, Youths wanted to put their energy into something worthy, income generating activity that would make them self-reliant. During skirmishes, most of the horrible things were committed by youths. The youth forums brought them to realize their potential.

Kericho youth Sacco, which got its capital from USAID, is a microfinance organization whose membership, is open to anyone –the modifier “youth” does not limit the adults from joining. It, first, begun with kericho county with the plan to extend it operation. “Small and medium enterprises are our customers,” said Kibet, Sacco treasurer. “It can be owned by youths, or partnership of youths and adults. All are encouraged to register their members.

In phase one, capacity building, it registered 1500 groups. And so far, a bout 400 members –groups and individuals –have joined. The sponsor, who was interested in the ambitious –whose energy could be turned into anything –, begun giving grants which build the base for saving in the Sacco.

Their fund is revolving. Therefore its rates are as low as 12% interest per annum, perhaps on a reducing balance. On average, the interest is below 12%. To join, one pays ksh 300 for registration and ksh 1000 for shares. One is eligible to borrow loans after saving for six months.

The youth Sacco has merits: no security is required to borrow loans, members guarantee themselves, members are the owners of the organisation, and therefore enjoy the dividends. Kericho youth sacco offer products such as Je Utahama lini?, kilimo, savings and credit, and finance of tenders.

Sacco's Kilimo services have helped starters earn money

After the government procurement preference, many youths are worried how to finance tenders that would be worth millions. In any case, a member of the youth Sacco would get the first priority. The burden has lessened.

It is run by members –every member’s voice is heard. The governing board is elected. In every three years, the county youths elect a delegate from the wards that would elect the county board. Its operation is under the ministry of devolution, formerly ministry of cooperatives, and it is audited by the government.