SACCO

Savings and Credit Cooperative Organization. A member-owned financial cooperative that provides savings and loan services. Very popular across Africa, especially in Kenya. Example: A group of 200 teachers in Nyeri form a SACCO and each contributes KES 5,000 monthly. After a year, the pooled funds allow members to borrow up to KES 300,000 at just 1% monthly interest — far cheaper than commercial bank rates of 14-18% per annum.