Co-operative credit: the Kenyan SACCOs in a historical and development perspective

SACCOs in Kenya are currently a leading source of the co-operative credit for socio-economic development. The phenomenal fast growth of the SACCOs in the last two decades to become a major co-operative type, particularly in Kenya is essentially due to the provision of credit for a wide range of purposes and on relatively very easy terms. The credit has furthermore suited different categories of borrowers including disadvantaged groups, especially women. This discussion is aimed at establishing the facts and trends regarding Kenyan SACCOs. The idea is first to close the increasing knowledge gap on SACCOs as a co-operative institution; secondly, to highlight the emerging key role of SACCOs in development especially in terms of financial intermediation. The paper after putting credit into a development context therefore analyses the historical origins of co-operative credit focusing on the evolution and nature of Kenyan SACCOs.