In this episode recorded on 06.02.2025, we host the Stima Sacco CEO, Gamaliel Hassan, to learn how SACCOs operate, their benefits, and how to leverage them for financial growth. Subscribe to get notified when we make a new post. Key Quotes “More than 40% - 45 % of the money that we earn as a profit, is paid back to our membership.” “Even as you look at what is being given to you as a return, the first question you should always ask yourself is ’The place I've put my money, is the money safe?’ Return is secondary. You have given a principal amount to somebody, can that principal sum be guaranteed that if you need it, you're going to have it? So number one, ‘Is the money safe?’ Number two, ‘If I want my money back, am I going to get it?‘ Number three, ‘Is the money accessible?’ And then lastly, let's talk about the aspect of return, and this goes without saying, if the return is too good, normally think twice. If somebody is offering you a return of 30%, ask them, what are you trading in to give you such a return.” “Guarantee is not an obligation. You're not obligated to guarantee anyone. Only guarantee the people that you know very well, you know where to find them, probably their families, something about them, their character. Because guarantorship is about character.” “When you join the SACCO, there are two very important disclosures. Disclosure number one, your shares are not refundable but they are transferable. So if you have shares in a SACCO, correctly as stated, those shares, you cannot come and say, refund me the shares. Those shares will always be part and parcel of the share capital of that SACCO, and that is by law and by regulation. However, those shares can be transferred…The second disclosure is on the deposits that I've talked about, the monthly deposits. Those monthly deposits are indeed withdrawable. You can be able to withdraw them. However, there's a catch around it. By law, you can withdraw them by giving a 60-day notice. So you give 60 days’ notice and say, I'm withdrawing, and within 60 days you must get your money back.” “The best thing you can give somebody is the ability to make income. You don't want to be giving handouts to people. You want to show somebody how to make money. The best thing is to showcase to people how money can work for you, and the share capital is a classic example of that.“ Show Notes 00:00:00 Introduction 00:02:11 Understanding Saccos and their Operations 00:11:50 Joining a Sacco 00:16:18 Stima Sacco Products and Benefits 00:27:49 Interest Rebates, Dividends, and Loans 00:44:55 Guarantees and Loan Repayment 00:51:47 Exiting a Sacco 00:58:22 Stima Sacco Financials 01:04:52 Diaspora Members 01:06:00 NPLs and Financial Discipline 01:17:27 Closing Remarks Get full access to The Mwango Weekly at mwangocapital.substack.com/subscribe
