SACCOs Promoting Gender Equality: Women’s Economic Empowerment

Women empowerment as a result of embracing SACCOs to promote gender equality

What is the role of SACCOs in promoting gender equality?

SACCOs have been at the forefront of promoting gender equality. Basically, they provide financial services such as savings, credit, and insurance to their members. Members own and manage SACCOs, which operate on a not-for-profit basis. Their aim is to establish and promote thrift, provide credit, and improve the socio-economic conditions of their members. SACCOs are particularly relevant in developing countries where traditional banking services may not be available or accessible to many people, particularly women.

Women in many developing countries face significant challenges when it comes to accessing financial services. Formal banking institutions often limit their access and exclude them from financial decision-making. This lack of access to financial services puts women at a disadvantage when it comes to starting and growing businesses, managing household finances, and planning for the future. SACCOs which are even now digitizing their processes offer a potential solution to these challenges.

Therefore, as they focus on women’s empowerment, SACCOs really aid in promoting gender equality. We acknowledge that women’s economic empowerment is critical to achieving both sustainable development and reducing poverty. By ensuring the economic empowerment of women, it means that women have the ability to access and control resources, earn income and participate in economic decision-making. This, in turn, impacts positively on their overall well-being and that of their families and communities. 

SACCOs have been instrumental and at the forefront of promoting gender equality and women’s economic empowerment. This has successfully been achieved in the following ways:

Access to financial services.

Particularly in developing countries, women often lack access to formal financial services.  Therefore, it has been an important initiative by SACCOs to help bridge the gap. SACCOs have been able to provide a safe and convenient place for women to save their money and access credit when they need it. The SACCO loans are typically small but they can make a big difference for women who are starting or growing their businesses. Women who are SACCO members can access credit on more favorable terms than they would from traditional lenders. This is because their interest rates are lower and there are also more favorable terms than the traditional lenders offer.

Image illustrating financial services as one of the provisions by SACCOs to promote financial situation

As a result of this, women are able to invest in income-generating activities, such as small businesses or farming, which can improve their economic status and that of their families.

Women who are members of a SACCO can access credit on more favorable terms than they would from traditional lenders. SACCO loans often have lower interest rates and more flexible repayment terms. This makes them more accessible to women who may have irregular income streams. Also, for those who may not have the collateral to secure a loan.

Promoting women’s leadership and decision-making.

The SACCO setup involves member ownership and management. In this regard, SACCOs have been successful in promoting women’s leadership and decision-making. This is majorly because they are democratic organizations, whose decisions are made through a voting process. Therefore, women have the opportunity to participate in the decision-making process and have a say in how the SACCO is run. 

Image showing women leadership as part of SACCOs mission to promote gender equality

If women are part of the board of directors or committee members, they can gain valuable leadership experience and skills.

Promoting financial literacy song women. 

The provision of financial education to members is part of key SACCO goals and initiatives. In this regard, SACCOs are committed to offering financial education programs that teach women how to save, invest and manage their money effectively. 

Offering these lessons has had a positive impact on their overall financial literacy. This in turn improves their ability to make informed financial decisions.

Promoting social empowerment among women.

SACCOs are community-based organizations that provide women with a platform to interact with other women. As a result of the interaction, the women are able to share experiences and learn from each other. This is in most instances quite beneficial for the community. 

The interaction creates a sense of community and support, which is important in promoting social empowerment and reducing social isolation.

Promoting women’s access to markets.

SACCOs provide women with information on market opportunities. In addition to that, women are also able to get information on access to credit which can be crucial in investing in income-generating activities. 

In instances where women are able to take advantage of the market opportunities information, they are able to expand their businesses and can easily improve their economic status.

Promoting women’s access to land and property.

In most developing countries, especially in rural areas, society often underserves women and denies them property ownership. However, joining SACCOs and actively participating in them encourages women to possess property. This is also very beneficial to them in the case where they need to access loans that require collateral. Most of the SACCO loans are granted based on the member’s savings. However, for some, there is a need for collateral in the form of land or property. In the cases where members own the land and property, they can use it to access loans which can be very beneficial in credit access. By being able to access credit, it is also quite easy to invest in income-generating activities or even purchase land or property.

Promoting access to healthcare

SACCOs have been known to take care of their members in important aspects including healthcare. They are seen to offer health insurance to their members. This can particularly be beneficial to women who are members of SACCOs. The women can cover themselves well with insurance and also take care of their families. This ensures healthy families and eventually healthy communities.


Despite their successes, SACCOs still face significant challenges when it comes to promoting gender equality and women’s economic empowerment. Limited access to resources is one of the biggest challenges. Many SACCOs in developing countries have limited resources, which means that they may not be able to provide the level of financial services and support that women need. This can be especially challenging in rural areas

In conclusion, SACCOs have played a significant role in promoting gender equality and women’s economic empowerment in developing countries. They have provided women with access to financial services, promoted women’s leadership and decision-making, promoted financial literacy and social empowerment, and promoted women’s access to markets, land, property, and quality healthcare. Therefore, women are able to participate in financial decision-making and have a voice in the economic development of their communities.

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