Types of Savings

GROOTS Sacco Society has two types of saving accounts for its members i.e. Shamba Account (to be reviewed), Savings, and share capital.

Shamba Account is a new product from the SACCO Members to save for a period of time. It’s in the first phase of operation and the members save an agreed amount for the Shamba “kiti”. The account will be used for women who want to save up for purchasing land for themselves. The amount saved after the lapse of the first quarter will be presented for assessment of a loan from the SACCO and land purchased will be subdivided among the members in the first phase.

Savings are refundable deposits that are contributed by Sacco members on a monthly basis. For instance, the minimum savings for GROOTS Sacco members is ksh1000. One therefore qualifies for 4 times the loan amount of their savings.

Share capital is the equity or core capital of the Sacco and represents each member’s ownership of the Society in terms of shares. That is the sum of money the Shareholders pay to the Sacco. Every member of GROOTS Sacco shall hold at least 250 shares of Kshs 20 each- the minimum share capital of Kshs. 5,000.