Frequently Asked Questions

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Below is a list of Frequently Asked Questions about SACCOs and their Operations

What is a SACCO?

A SACCO is an acronym for Savings and Credit Cooperative Organizations. It is owned, governed and managed by its members who have the same common bond: they may be working for the same employer, belonging to the same church, labour union, social fraternity or living/working in the same community.

A Savings and Credit Cooperative’s membership is open to all who belong to the group, regardless of race, religion, colour, creed, and gender or job status. A SACCO is unique, democratic, member driven and self-help cooperative organization. In a SACCO, members agree to save their money together and offer loans to each other at reasonable rates of interest. Interest is charged on loans, to cover the interest cost on savings and the cost of administration.

SACCO members are the owners and they decide how their money will be used for the benefit of each other. Savings and Credit Cooperatives are democratic organizations and decisions are democratically made. Members elect a board that in turn employs staff to carry out the day-to-day activities of the SACCO.

The number of board members is between nine and fifteen. Members also elect a supervisory committee to perform the function of an internal audit. SACCOs are legal bodies registered under the Uganda Cooperative Statute of 1991 and Cooperative Societies Regulations of 1992.

SACCOs are economic institutions doing business in order to grow, survive and become sustainable.

The minimum number of members required to register a SACCO under the current law is 30 people. However for purposes of accessing external support, a minimum of 300 members may be the basis for selection.

Why form a SACCO?

What you need before forming a SACCO?

Why Join a SACCO?

What do SACCOS offer to Members?