Small Loans with Big Impact

“It is not so difficult to be self-empowered,” argues Angela Kung’u, the Loans Officer of DOVE Springs SACCO*. She explained that women are among those being encouraged to join saving-and-credit groups. Angela noted that a Savings and Credit Cooperative (SACCO) helps people develop a ‘saving culture’ and save on monthly basis. Saving enables people, and especially women, to raise their living standards and that of their families.

According to Angela, SACCOs are beneficial in that they bring services closer to the people. Average income earners are able to acquire assets for their homes or establish self-supporting businesses, and pay the loans slowly with a very minimal interest rate.


The SACCO office at Nairobi

Submission of monthly deposits and loan repayment is done through a cell-phone-driven banking system known as Paybill. “The new technology makes it easy for people to save from any region within the country,” Angela explains.

Joab Onditi, Marketing Officer, noted that the SACCO has an economic impact on its members through loans that they have acquired. “We urge members to continue saving and take loans for their economic welfare,” he advised.

Joab noted that the loans offered by the SACCO have the very low interest rates compared to banks and other financial institutions. He also added that it is easier and faster to acquire a loan, usually processed within few days, compared with the long process in banks.

Many of the loans are relatively small, but have a huge impact in changing the economic landscape for small businesses and families alike.

*DOVE SPRINGS SACCO is a project of Springs of Africa.

By: Kenneth Irungu


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