Sacco Times

Keeping you informed

How Saccos contribute to the country’s GDP

2 min read
Since 2010, Kenya’s GDP been significantly growing, thanks to Agriculture, which is the second largest contributor, after the service sector.

Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific period of time.

The Country’s GDP as at 2019, stood at Kshs.8900 billion, placing the country at the 62nd largest economy in the world.

Since 2010, Kenya’s GDP been significantly growing, thanks to Agriculture, which is the second largest contributor, after the service sector.

The Agriculture and Service sectors main pillar in Kenya, is the Savings and Credit Cooperative Society movement.

The Sacco movement in Kenya, since its inception in the 1960s, has contributed tremendously to the economy, with Farmers, Teachers, Traders among other economy players utilizing loan products offered at an affordable and competitive interest rate.

Farmers have been able to borrow loans from Saccos to acquire firm products, thus improving on their produce.

Small and Medium Enterprises also take advantage of the Sacco products by drawing loans to strengthen their business, thus increasing the country’s tax return.

A good example is the Milimani Savings and Credit Cooperative Society, which contribute to the country’s GDP basket by financing of SMEs.

“We have successfully done this through our financing approaches for individuals, groups, Chamas, and churches through our products and services,” says the marketing manager.

Saccos offer quick, affordable loans to the country’s business, agricultural and service community at a competitive interest rate, which they use to grow economically, thus improving the living standard –which in turn grows the country’s GDP.

0Shares