Both banks and SACCOs lend to individuals, but they work differently.
| Bank | SACCO | |
|---|---|---|
| Regulator | Central Bank of Kenya | SASRA (for deposit-taking and specified SACCOs) |
| Who can borrow | Any customer who qualifies | Members only, usually after a minimum membership period |
| Loan limit | Based on income and the bank’s policy | Usually a multiple of your deposits |
| Security | Salary check-off, collateral or none for some products | Deposits and guarantors, sometimes collateral |
| Returns on savings | Interest on deposits | Interest on deposits and dividends on share capital |
| Credit reporting | Shares data with CRBs | SASRA-regulated SACCOs share data with CRBs since 2020 |
How to compare the cost
Compare the total amount you will repay, not just the rate. Check whether the rate is flat or reducing balance and add all fees. Use our bank loan calculators and SACCO loan calculators with the same amount and term.
Check a SACCO is licensed on our SASRA licensed SACCOs list.
Frequently asked questions
Are SACCO loans cheaper than bank loans?
It depends on the SACCO, bank and product. Compare the total cost using both calculators.
Who regulates SACCOs?
SASRA regulates deposit-taking SACCOs; CBK regulates banks.
More: Bank loan calculators · SACCO loan calculators · Loan affordability calculator · Guides
Sources
- CBK – Directory of Licensed Commercial Banks (July 2026) (checked 13 October 2026)
- SASRA – List of licensed SACCOs FY2026 (3 Feb 2026) (checked 13 October 2026)
- CBK press release – CRB Regulations 2020 (checked 13 October 2026)
