Young people have been encouraged to join SACCOs early to secure their financial future through a culture of saving and responsible borrowing.
Harambee SACCO’s Chief Operating Officer, Renson Mwaliko Mwandoe, emphasized the importance of early membership, noting that many young people are hesitant to join.
“Looking at the demographics, we see that young people are not very enthusiastic about joining SACCOs. I think it’s time for some reflection. Most of us wouldn’t have gone to school if our parents weren’t members of SACCOs,” said Mwandoe.
He was speaking on Tuesday during the Harambee SACCO Coast Region High-Savers Chairman’s Breakfast event in Mombasa.
“You save because there is always a tomorrow. Save today for tomorrow. Deny yourself a bit of enjoyment today for the sake of a better future,” he added.
Mwandoe noted that SACCO membership helps instill a savings culture, especially in communities where such habits are lacking.
“Even when you get a salary increment, don’t rush to change your lifestyle. Live the same way, and invest the extra income by increasing your shares in the SACCO. Over time, you’ll be surprised at how much you’ve saved. Since SACCOs issue loans based on multiples of your savings, you’ll be eligible for substantial loans for investment,” he explained.
Meanwhile, Harambee DT SACCO has automated all its services to attract younger members. According to Mwandoe, this digital shift enables members to access loans of up to Ksh. 3 million via mobile phone.
“Automation is a key strategy. Another is the ‘Karibu Loan’. We offer a sh.120,000 advance, sh.100,000 goes into your deposit, then we can lend you three times that. So, if you’ve just started working, say two months ago, you can qualify for a sh.300,000 loan to furnish your home. After repaying it within a year, you’re eligible for a top-up,” he said.
“This is how we are trying to entice the youth and keep them from falling into the debt traps of commercial banks,” he added.
The breakfast event also honored the SACCO’s highest savers.
Anthony Mutuku Samuel, a member since 1986, is among the top savers.
“I joined the SACCO when I first joined the police force. Every salary increment I received went straight to my SACCO savings. If I had started earlier, I would have even more saved by now,” he shared.
Elina Mdawida, a member since 1995, said the SACCO has helped her undertake several personal projects.
“I’ve introduced my children and friends to the SACCO. It has helped me, when you see me buying land, plots, or even building houses, it’s all thanks to the SACCO,” she said.
Both Mutuku and Mdawida echoed Mwandoe’s call for the youth to join SACCOs, saying the institutions offer access to loans with fair and stable interest rates.
“Many of us, even when we earn good salaries, spend it all. We’re becoming Americanized, spending everything, and even borrowing more. So when your salary comes in, it all goes to paying debts, and you end up in a cycle of online loans,” Mwandoe warned.