Mwelekeo TV recently highlighted a discussion where Hillary Kadenge addressed how young people in Kenya are earning money in new ways and why SACCOs still matter, making it clear from the start that financial systems must adjust to match this reality.
Many youths today are no longer relying on one employer or a fixed monthly salary. Instead, they are freelancers, content creators, online traders, and small business owners managing multiple income streams.
This shift has created both freedom and uncertainty. Unlike the past where income was predictable, many young people now deal with irregular earnings.
One month can bring in good money, while the next may be slow or delayed. This kind of income pattern makes it difficult to fit into traditional banking systems that often expect consistency.
Kadenge explained that this is where SACCOs can still play an important role, even for a younger generation that may see them as outdated.SACCOs have been part of Kenya’s financial system for a long time.
They were mostly built around people with stable jobs like teachers and civil servants.
These members could save regularly and qualify easily for loans. However, the reality today is different.
Many young people do not have payslips, yet they still need reliable ways to save and access credit. Kadenge pointed out that SACCOs, being member-driven, have the ability to adapt faster than traditional banks.
One of the key ideas discussed was that young people should not just wait for systems to change, but also take initiative.
They can join existing SACCOs or form new ones that reflect their type of work. For example, freelancers in similar fields can come together and create flexible saving plans that match how they earn.
Some SACCOs are already moving in this direction by accepting alternative proof of income such as mobile money records or client agreements instead of formal payslips.
Saving remains a key habit regardless of income type. Kadenge emphasized that even small and consistent savings can make a difference over time.
In a SACCO, members earn interest on their savings and also have a say in decision-making. This creates a sense of ownership that is different from using a normal bank account. Members can influence loan terms, suggest new financial products, and shape how the SACCO operates.
Borrowing is another area where SACCOs offer advantages. Compared to many digital lending apps, SACCO loans tend to have lower interest rates and better terms.
This is useful for young people who need funds for tools like laptops, cameras, or even training courses.
Since SACCOs operate as a community, there is also a level of accountability that encourages responsible borrowing and repayment.
The discussion also touched on investment opportunities. Many young people want to grow their money but lack clear starting points. SACCOs can open doors by pooling resources and investing in projects such as real estate or member businesses.
This allows individuals to access opportunities that would be difficult to achieve alone.
Challenges still exist. Some youths view SACCOs as slow or not in line with modern trends.
Fast digital loans may seem more attractive despite their higher costs. Kadenge stressed the need for more awareness so young people can understand the long-term benefits of SACCO membership.
Technology is helping bridge this gap. Many SACCOs now offer mobile platforms that allow members to save, apply for loans, and track their accounts easily. This makes them more convenient and appealing to a generation that prefers digital solutions.
SACCOs, if adapted well, can provide a practical solution. They offer a mix of flexibility, community support, and long-term growth. For many young Kenyans, this could be a step towards turning unpredictable income into a more secure future.
