In the past six months, Kenyans have demonstrated their growing confidence in the savings and credit co-operative organisations (Saccos) by depositing a tidy Sh36 billion.

It is a vote of confidence in these organisations as a reliable source of affordable loans and investment funds.

Saccos give better interest rates and also boost members’ earnings with annual dividends. The loans are issued at an interest rate of 12 per cent. The average lending rate for commercial banks is currently 15.29 per cent.

The latest government data shows that by the end of June, Kenyans had saved Sh787 billion in deposit-taking (DT) Saccos, up from Sh750.6 billion last year.

This 4.8 per cent growth rate underlines the growing confidence in the co-operative movement for investment and as a source of credit.

While the State Department for Co-operatives had projected that Sacco deposits would reach Sh723 billion by June this year, the target was surpassed by Sh64 billion.

The Sacco Societies Regulatory Authority (Sasra) says the 357 co-operatives had Sh750.6 billion in deposits by last December and had issued Sh842.8 billion loans.

They earned a total of Sh128.6 billion from lending last year, while income from investments was Sh15.8 billion.

The growth in deposits has been recorded despite the government owing Saccos Sh2.35 billion deducted from workers’ pay but not remitted. The co-operative societies recruited 420,900 new members last year alone, bringing the total membership to Sh7.3 million.

People’s savings must be protected at all times to encourage them to deposit more and make available funds to borrow for emergencies, basic needs such as school fees and health services and for investment.

Officials who loot Sacco funds must be pursued, arraigned, and the stolen funds recovered. The management of Saccos should be enhanced to avert losses.

There is a need to safeguard the savings by keeping the cheats and hackers at bay.

The rules and regulations governing Saccos must be tightened and strictly enforced to protect the members’ savings and enhance investment for their well-being.