The battle for consumer trust is heating up, putting long-established lenders against a rapidly evolving cooperative movement. In an era where inflation bites, lending tightens, and digital expectations soar, more Kenyans are asking: Who really has our best financial interests at heart, SACCOs or other lenders?
The answer isn’t as straightforward as it once was. For decades, mainstream lenders dominated the formal financial space with sophisticated systems, corporate branding, and robust product portfolios. But today, savings and credit co-operatives are making a compelling case by combining community-driven values with increasingly modern financial services. The result is a seismic shift in perception and trust.
The trust equation
Trust in a financial institution is more than just confidence in safety of funds. It’s about transparency, responsiveness, fairness in pricing, and a sense of shared prosperity. Saccos, built on cooperative values and member ownership, are increasingly seen as more transparent and approachable than some mainstream lenders. Members don’t just save or borrow, they co-own the institution. This creates a different type of relationship—one grounded in mutual accountability.
According to a 2023 FinAccess survey, nearly 28% of adult Kenyans consider Saccos their primary financial service providers, up from 20% in 2019. Trust, according to the report, was the leading reason for the shift.
The power of dividends and fair Lending
One of the most powerful differentiators? Dividends and interest on deposits. While most lenders offer little to no returns on current or savings accounts, many Saccos pay dividends of 10%–15% on share capital and interest on deposits upwards of 12%.
Add to this the lower interest rates on loans, usually calculated on a reducing balance, and Saccos begin to look far more attractive, especially to civil servants, farmers, entrepreneurs, and salaried workers.
“The beauty of a Sacco is that you are both a customer and an owner,” says Peter Kamau, a small-business owner and longtime member of a teacher-based Sacco. “When you borrow, you’re borrowing from your own ecosystem. When the SACCO performs well, we all win.”
Digital innovation levels the playing field
The mainstream lenders long held the edge when it came to tech adoption. However, Saccos have caught up fast. Leading Saccos have integrated mobile banking apps, USSD platforms, automated customer feedback systems, and even real-time loan disbursement through mobile wallets.
Take Amica Sacco for instance. Over 90% of its transactions are now done digitally, and its internal leadership is rated by members after every interaction. Meanwhile, some financial institutions still struggle with bureaucracy, high transaction fees, and one-size-fits-all services.
Challenges remain
To be fair, some Saccos still face hurdles, limited geographic penetration, slower uptake of advanced tech infrastructure compared to other lenders, as well as occasional corporate governance challenges.
Depending on their positioning on the other hand, a good number of mainstream lenders are able to attract corporate clientele and high-net-worth individuals due to their scale, regulatory oversight, and broader product offerings like forex trading, asset management, and trade finance.
The youth question
A crucial battleground is the youth market. SACCOs are now positioning themselves as partners for long-term wealth creation, entrepreneurship, and financial education. From youth-tailored savings products to digital microloans, SACCOs are embedding themselves into the lives of young Kenyans seeking both convenience and empowerment.
So, who is really winning?
If the question is who commands more loyalty and trust among Kenya’s citizens from all walks of life, then Saccos are clearly on the rise.
In fact, in counties like Murang’a, Kakamega, and Meru, Saccos are the first point of financial contact. In urban centres, hybrid models are emerging – tech-savvy Saccos offering cutting edge products and services rivaling the mainstream lenders.
As inflation continues to bite, and the informal sector expands, Saccos will likely deepen their market share by staying true to their roots while embracing modern tools.
Indeed, Saccos are redefining how the market perceives financial institutions. In a country that values community, fairness, and resilience, Saccos aren’t just earning trust, they’re reshaping it.
