3 Ways to Invest your SACCO Dividends

How to make smart investments as a SACCO member.

The word SACCO, which is an abbreviation for Saving and Credit Cooperative, is nothing new to most of us.

SACCOs are user-owned financial institutions that offer both savings and credit services to their members.

Members of these financial institutions can be both net savers and net borrowers.

One of the main differences between traditional banks and SACCOs is ownership. Banks are generally owned by investors who may or may not be account holders.  However, in a SACCO, you become a partial owner of the organization the moment you open an account there.

SACCOs also offer personal loans and have relatively cheaper interest rates.

SACCOs only earn profits whenever members borrow and pay interest on loans. It is from the profits earned that the dividends are paid out.

A good example of how SACCOs are fruitful is in the tea growing areas of central Kenya, but most of the time the dividends earned from it are used for consumption rather than investment, something that should change.

Better ways for SACCO members to utilize their earned dividends and or loans they take out of these SACCOs are as follows;


Purchasing Apartments to Rent Out

Purchasing Apartments to Rent
Purchasing Apartments to Rent

Apartments are a good long-term investment to ensure you earn guaranteed passive income monthly as a landlord/landlady.

This in turn ensures you have multiple sources of income as well as guaranteed financial security.

In addition to this, under the new sectional properties act 2021, house unit owners are to be guaranteed a title deed.

A very good example of an institution already implementing this in its current apartments is Naiverah Holdings Limited.

They offer affordable housing and ensure you acquire titles on the same.

This is great news because that title deed can be used as collateral in banks to acquire loans for other investment properties in the future so basically, you haven’t locked up all your money by investing in buying an apartment. 


Purchasing Small Income-Generating Assets 

Income Generating Assets
Income Generating Assets

In this segment the options are endless. Members can do a small market analysis of their environs and see what type of investment can both serve the people around them and also more importantly earn them money.

Depending on the community it purposed to target, small assets like motorbikes, chuff cutters, water pump generators, car washes, small scale animal farming, local hotels, retail shops, and even posho mills can all generate income separately from what one might earn in their daily jobs if employed since they can all be outsourced.

This helps generate passive income, create wealth and even create jobs in our community


Purchasing Land

Oasis-Naivasha plot for sale
Oasis Naivasha plot for sale

This has since time immemorial been one of the most common ways of investing.

Affordable Land will always be in constant demand due to continuous growth in population as time goes by.

Population growth dictates finding new settling grounds to avoid over-settlement on a specific piece of land.

This in turn generates the demand for land, which in turn spikes the prices of land over time thus increasing it’s value.

This implies that the longer you hold onto a piece of land, the greater the value it accumulates, especially if it is located in a fast developing area.


It is better to invest than consume.

The biggest risk of all is not taking one.

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