deadpoet wrote:Wazuans, which is the better alternative if someone was to choose one? For example, why would one choose stima sacoo over stima investment cooperative?
What would be the pros and cons of either?
It's not a like for like comparison. A SACCO mainly is used for loans and saving. You save for a number of months, you are granted a loan based on your savings, typically 3 times your savings, and normally this loan is guaranteed by fellow members. At the end of the year, you earn dividends and interests on your savings in the SACCO.
An investment cooperative on the other hand is an extension of a SACCO in terms of governance, such as one man, one vote etc but then, is a place where you give them money, they buy plots (or carry out other investments activities) with it, sell it to members or non members alike, make some money and share with you some dividends at the end of the year. Typically the return on investment cooperative is higher than that of a SACCO because in a SACCO you benefit by having cheaper loans, normally at 12% p.a.
We normally track this sector on our blog whose
link is hereBe ignorant and ask a few questions - Peter Drucker