Saccos need to put strategic plans in place. SWOT analysis is a great tool in aiding in the process of making one. This is just an example and I bet Saccos and other types co-operatives face or have different strengths, weaknesses, opportunities, and threats.

1. SWOT ANALYSIS OF
A SACCO SOCIETY
BY STEPHEN KIRITU MWANGI
A CO-OPERATOR

2. S-STRENGTH
-Loyal membership
-Ready market for product and services offered
-Favorable interest rates
-Credit facilities are accessible and conditions not stringent
-Management is accessible and approachable
Member recruitment and marketing
-Board and member confidence
-Strong , transparent and Informed leadership
-Established team and team work
-Competent , committed and hardworking staff
-Experienced management and skilled staff
-Good reputation, positive image and brand

3. W-WEAKNESSES
-Most members are net borrowers and not savers
-Savings are not realized out of personal decision but as a
result of the minimum set by the general meeting
-Leadership through democratic practice and often leaders
would want to be loyal to the electorate
-Leaders lack entrepreneurship/business skills
-Disregard of policies (i.e. credit policy) by management
-Pressure and demand from members because of promise
during the election period
-Increasing poverty levels and inflation forcing members to
seek cheap financial support-perpetual borrowers
-Members not able to do self-appraisal of projected
investments

4. O-OPPORTUNITIES
-Unsatisfied demand from the members/customers
-Amendments to the Co-operative Societies Act, Rules and
By-Laws i.e. open up membership, diversity in other products
(Front Office Services)
-A sound representation in the Apex bodies (corporate image,
synergies)
-Open agency banking
-Advancement and Growth in Technology e.g. mobile banking
(MPESA, ZAP)
-Aggressive marketing and publicity campaign of products and
services
-Potential to attract more membership because of its financial
stability and good customer service

5. O-OPPORTUNITIES CON’T
-Salary processing for members
-Regulated business environment
-A wider and unexploited and untapped market regions
-Introduction of new loan products
-Innovativeness in product branding
-Poor performance of other SACCOs in the region
-Opening of branches and service centres to bring services
closer to members
-Close relations with the employer
-Embracing of partnership with other organization and stake
holders
-Education and training of members

6. T-THREATS
-Competition from micro-finance institutions and banks
-Change of policies and legal framework
-Increasing poverty levels and inflation
-HIV/AIDS pandemic
-Retrenchments and redundancies affect the capital base
and membership
-Technological changes in the financial and business sector
-Ageing membership
-High rate of member withdrawal
-Lack of awareness ,ignorance and poor patronage among
some members
-Transfer of SACCO members from their work place

7. THANK
YOU