Kenyans living abroad have registered 10 savings and credit co-operative societies (Saccos), Industrialization Cabinet Secretary Adan Mohammed has said.
Speaking during the official launch and rebranding of Taqwa Sacco, the CS noted that the 10 Sacco’s would not only promote a culture of saving but also more than double diaspora remittances.
“So far, we have registered two Sacco’s in the USA, two in Qatar one in Germany, Swaziland, Nigeria, France, South Africa and Canada respectively,” said Adan.
“The Ministry continues to promote registration of Sacco’s for Kenyans in the diaspora aimed at tapping into the huge potential from this group of Kenyans, and to channel the savings for social economic development in an organized manner despite establishing a footprint of the Kenyan co-operative movement in the global international business arena,” he added.
Taqwa Sacco’s move to open its doors to the public is likely to affect banking institutions given that the Sacco which is the first Sharia Compliant organization of its kind in Kenya, will offer all services offered by local lenders in addition to zero interest rates on loans given to members.
“Our 0% interest rate on our loans will help us triple the number of our members and we are not restricted to the Muslim religion alone. All Kenyans have a right to access cheaper and affordable credit and we will be offering credit across all races, religion, and tribes in Kenya,” said Taqwa FOSA Sacco Chairperson, Ahmed Yusuf.
Started in 1998, the Sacco has over 4,000 members and its deposits stood at Sh372 million at the end of 2016.
Data from the Ministry of Industry, Trade, and Co-operatives shows that co-operative movement boast of more than 22,000 registered co-operative societies, commanding a total membership of over 14 million Kenyans.
The Sacco sub-sector alone has mobilized domestic savings in excess of Sh600 billion and asset base of over Sh800 billion.
The Kenyan co-operative movement has been rated first in Africa and seventh globally. In 2012, the Sacco subsector was rated by the World Organization of Credit Unions as the world’s fastest growing sub-sector.
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