Ngong:Youth in Kajiado North are being encouraged to join savings and credit cooperative societies (Saccos) to foster a culture of saving and gain access to affordable loans. This initiative seeks to provide an alternative to high-interest digital lenders and informal lenders.
According to Kenya News Agency, Kasaine Ole Senkok, the Monitoring and Evaluation Officer for the National Agricultural Value Chain Development Project (NAVCDP), emphasized the low participation of young people in Saccos during a seminar at Umoja Social Hall in Ngong. He noted that despite youth under 40 years constituting a large portion of Kajiado’s population, their involvement in these cooperatives remains minimal, exposing them to costly credit options.
Senkok urged the youth to consider Saccos as they offer affordable, locally accessible credit under government regulation. He highlighted that joining these cooperatives could protect young people from the excessive interest rates of digital lenders and the severe debt-recovery measures of informal lenders. He also called on SACCO officials to refine their recruitment strategies to attract more young participants, crucial for the sustainability of these societies.
Anne Njoroge, Chairperson of Ngong Multifarmers SACCO, acknowledged these challenges and announced plans for a vigorous membership recruitment campaign, which will start by reactivating dormant memberships. The cooperative aims to recruit at least 1,000 new members by December, urging residents to adopt saving as a means to improve financial stability.
SACCO member Mary Karanja pointed to the need for ongoing public awareness about Saccos, as misunderstandings about initial grants led some to believe they were receiving free money from the World Bank. This misconception caused some members to become inactive. Senkok addressed this issue, emphasizing that government-supported programmes are not handouts but opportunities for building sustainable livelihoods.
Njoroge explained that the SACCO provides loans for agricultural value chains and short-term credit for small businesses with a low-interest rate of one percent per month. This allows members to finance their ventures more affordably than other options.
Ngong Multifarmers SACCO is one of 25 such cooperatives in Kajiado County, each supported by the NAVCDP, a partnership between the Government and the World Bank aiming to transition smallholder farmers from subsistence to commercial agriculture.
Senkok believes that strengthening Saccos and increasing youth participation can broaden financial access and create investment opportunities in agriculture and small enterprises for young people. He encouraged the youth to engage with financial programmes that promote disciplined saving and sustainable income generation.
