SACCOs can help young people and freelancers manage irregular income and build financial stability, according to finance expert Hillary Kadenge in an interview with Mwelekeo TV.
He explained that many youth struggle with saving because their earnings are not consistent, but SACCOs provide a structured and practical way to grow money over time.
Kadenge noted that freelancing is becoming more common in Kenya, with over one million people earning a living through gigs, online work, or small businesses.
This number continues to rise as more graduates turn away from formal employment due to limited opportunities.
Freelancers often enjoy flexibility and independence, but they also face uncertainty when it comes to income. Some months bring high earnings, while others can be slow, making it difficult to plan finances or build savings.
He pointed out that SACCOs, also known as Savings and Credit Cooperative Organizations, are well suited to this kind of lifestyle.
Unlike banks, SACCOs are owned and controlled by members. People contribute savings regularly and can borrow money at relatively lower interest rates.
Kadenge emphasized that the idea that SACCOs are only for older people in stable jobs is outdated. Young people can join existing SACCOs or even form their own groups that match their financial realities.
One of the main benefits of SACCOs is that they encourage discipline. Freelancers may be tempted to spend most of their income during good months, but SACCOs promote consistent saving, even in small amounts.
Some SACCOs now offer flexible options such as micro-savings, where members can deposit small sums, and goal-based savings that help people plan for things like rent, equipment, or business expansion.
These options make it easier for young people to stay committed to saving despite income changes.
Technology has also made SACCOs more accessible. Many now use mobile platforms, allowing members to save, apply for loans, and check their balances using their phones.
Integration with mobile money services like M-Pesa has reduced the need to visit physical offices, making the process faster and more convenient.
This digital shift is helping SACCOs appeal more to young people who prefer simple and quick financial solutions.
Kadenge also highlighted the importance of mindset. He said freelancers need to treat their work as a serious source of income and plan for the future. By saving through SACCOs, they can build emergency funds, access affordable loans, and invest in assets that improve their lives.
Informal savings groups, such as the one he manages, can grow into formal SACCOs, offering more security and better financial opportunities.
He added that SACCOs can design products that target youth, including startup loans, education savings, and flexible credit options.
Joining early helps young people learn financial discipline and responsible borrowing. This not only benefits individuals but also strengthens the SACCO sector as more young members join.
Despite the benefits, some SACCOs still face challenges such as rigid rules and slow processes. Kadenge encouraged SACCOs to adapt by embracing digital tools and involving young people in leadership.
For freelancers and youth, his message was: start small, stay consistent, and use SACCOs as a tool to build a stable financial future.
SACCOs offer more than just a place to save money. They provide a system that helps turn unpredictable earnings into long-term security.
For many young Kenyans working in the gig economy, they can be a reliable partner in building a better financial future.
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