Abstract:
In the past few decades many Saving and Credit Co-operative Societies (SACCO) in Kenya thrived due
to several innovations including but not limited to lowering of their loans interest rates, and providing
members with economical banking services. With the increase in the number of organizations willing
to emulate the same products to members for example lending money within shorter periods with
minimal interest rates due to easy recoverability of the same for example Safaricom - Fuliza and M-
Shwari loans, MCO-OP salary loans, Equitel-loans, KCB Mobiloan services, SACCOS are facing very
stiff competition from these institutions and if this trend is unchecked, it might lead to the demise of the
Co-operative Societies. Therefore there is urgent need for SACCOS to reinvent themselves in order to
remain relevant. This study surveys a few innovative ideas that may be adopted and/ or pursued in
order to safeguard against the depletion of SACCOS. Among them is the good response of members
towards a higher education loan and savings by products, contemporary skills training loan for produce
SACCOS such as Agriculture and manufacturing and members dependants by products. Furtherance to
indicate that the adoption of the pursued ideas would lend credence to the uniqueness of SACCOS as
being the institutions that develop the welfare of their members since these ideas if properly
implemented would generally improve members’ wellbeing.
