SACCOs in Kenya: The Benefits of Borrowing

Saccos in Kenya

Besides the best saving plans they offer, registered SACCOs in Kenya offer plenty of borrowing opportunities too. In this article, we’re going to cover all the benefits of borrowing from SACCOs in Kenya and how to get the most from your money with Mombo!

What are SACCOs?

In case you didn’t already know, SACCO stands for savings and credit cooperative organization. So, you can already tell that they’re all about best savings plans, savings accounts and finance. But in this article, we’re going to focus on the credit side of SACCOs in Kenya.

SACCO societies are organizations of savers, investors and finance professionals, so you often have a lot of opportunities to make the most of your money. From higher interest rates on your savings, to lower fees compared to what the traditional banks charge.

The Benefits of FOSA and BOSA

There are 2 types of SACCOs in Kenya, both with unique benefits.

FOSA stands for Front Office Services Activity. It basically means that they offer similar products to the traditional banks in Kenya, and you can access your savings over the counter. You can withdraw from your SACCO account when you like, but there may be small fees and reduced interest rates as a result. These aren’t the best saving plan if you want to get the most interest from your savings. FOSAs are regulated by SASRA (SACCO Societies Regulatory Authority) while BOSAs are not.

Benefits of a FOSA SACCO:

  • You can withdraw money when you like, as you would a bank savings account.
  • As a member of the SACCO you may have access to their loans too.
  • Clearinghouse process also allows you to process your salary and cheques through the FOSA.

BOSA stands for Back Office Services Activity. That sounds shady, and although they aren’t regulated by SASRA, there are very reputable, trusted and regulated SACCOs in Kenya that are BOSAs. The money you put into the BOSA can’t be touched until you leave the SACCO altogether – this usually allows for higher interest rates on your savings and comes with other benefits, as you’re locking your money in. Take Mombo SACCO for example and read more about why we’re so great below.

Benefits of a BOSA SACCO:

  • Higher interest rates compared to banks and FOSA SACCOs on your savings.
  • Money tied into the BOSA can be used to get you a higher loan – 5x your savings in the case of Mombo!

Solely focused on your savings and loans – a BOSA SACCO is dedicated to managing these finances alone.

The Benefits of Borrowing from a SACCO

Here are the key benefits of borrowing from a registered SACCO in Kenya. Can your bank offer you these features?

  • Better credit facilities and more flexibility than the banks.
  • A much smaller chance you’ll be declined a loan from a SACCO you’re part of, compared to traditional lenders!
  • You may be entitled to dividends as a key member, depending on the SACCO.
  • It’s much easier to save large amounts of money without the temptation to spend it – especially with a BOSA.

Extra benefits from Mombo:

  • A completely digital process – from signing up to applying for loans to repaying them.
  • Access and monitor your SACCO activities from anywhere via smartphone.
  • Access to Mombo iCapital for larger loans and investments.
  • Dedicated 24/7 customer support via our innovative Mombo app.
  • Life insurance guarantee – if you pass away while holding savings with Mombo, your loved ones will receive twice the amount you saved.

    Discover Mombo SACCO

Mombo SACCO is a BOSA, meaning we are registered, licensed and regulated by the commissioner of cooperatives under the ministry of industry, trade and cooperatives. As far as we know, we are the leading SACCO in Kenya in terms of FinTech and forward thinking! Not only is our entire application process digital but we’ve gone to lengths to make sure it’s user-friendly and easy to understand.

When it comes to borrowing from Mombo SACCO, you can access up to 5 times your savings, at an affordable repayment rate. And if you need more for a shorter period of time, you can also access Mombo iCapital from the app.

Discover more about Mombo SACCO, one of the leading SACCOs in Kenya here.

Should I Pay Off My Debts or Start Saving?

Pay Off Debt or Save?

Whether you’re always struggling to pay off those small cash loans, or just despairing at the thought of spending hours hunting for the best online savings account, you really need to find a better financial balance.

Instead of going to open a savings account with the biggest or nearest bank, carefully consider how to better manage your borrowings, loans and savings by reading this article!

How Debt Cycles Get Out of Hand

Not only do debt cycles cost you a lot of money and stress, but they also stop you from saving money for the future.

Typically, there are 3 ways that a debt will grow from small cash loans.

  • Interest Rates. A debt will grow naturally over time because a lender will charge you interest on the amount of money that remains outstanding. Banks can charge you interest as high as 15% in some cases – money you could be saving is spent on high interest rates instead.
  • Borrowing to Repay Existing Debt. If your savings are all tied up in a strict savings account (read more about the limits to these below) you might find yourself borrowing more from a different lender just to repay your original debt. Moving debt around like this can ruin your credit score.
  • Fixed Fees. Some lenders will charge you fees if you don’t pay back the loan on time, adding even more to your debt.

As you can see, having debts can often mean that there’s no room to open a savings account or even be accepted for future small cash loans. This is unbalanced and something we at Mombo want to change.

Saving Money

Saving money sounds like a wise financial move, but sometimes the wrong savings plan can be as bad as debt! Take education plans for example:

There are specific bank savings accounts and investment schemes where you open a savings account and pay in a set amount each month for your child’s education. These are generally for around 10 years, but sometimes can be for much longer. Each month you pay in a set amount that you won’t get back until your child needs it for education – this is very limiting and often the interest rate you receive is poor.

What if you were to pass away before you finish paying for your child’s education? What if you or your child are in a serious accident and need that money to pay for healthcare? You may need to result to small cash loans despite having saved money for years.

When you open a savings account with a SACCO however, you can withdraw the money when you need it with little hassle. You can even borrow against those savings for long tenors.

Picking the best online savings account means being wise about how you tie down your money.

Finding A Balance

At Mombo, our vision is to provide customers with full control over their financial situation. Having a balance of finances allows you to be in a better situation.

Furthermore, we believe that you shouldn’t have to be dipping into savings before you’ve saved up for the real reason: a wedding or education fees, for example.

Everyone should have the freedom to borrow, pay off loans and save at the same time. Small cash loans are great for small emergencies while having savings should allow you to borrow for longer periods of time – having a balance of savings and loans allows you to do more with your money.

How Mombo Can Help

When you open a savings account with Mombo SACCO, you can borrow up to 5 times your savings for up to 48 months. Your savings stay where they are, and you get the funds you need in the meantime. When you open a savings account with a bank, you’re often required to provide collateral and charge per annum – sometimes as much as 15%. Mombo SACCO offer you credit based on your savings – and you repay at a cheaper interest rate than banks.

And then there’s Mombo iCapital for borrowing larger amounts and investments. You can borrow up to 50% of your net salary for 6 months, rather than rely on small cash loans. Save with Mombo SACCO for access to big loans and use Mombo iCapital for emergency loans: a great way to avoid the debt cycle and manage all your finances in one place!

All of this is available via the Mombo app, so why not check that out instead of hunting for the best online savings account?

How to Save Fast and Automatically With a High-interest Savings Account?


Let us admit: not all of us are savings gurus. We visualize the goal, figure out the amount of money needed, and make a resolution to set aside some cash for it every month… But then, our determination gradually dies down, we lose consistency and soon find ourselves far behind our saving goal. You know the story.

Does it mean you are doomed to yield your goals to your inconsistency every time? No! All you need is to get your savings automated. Opening a savings account will keep you on track until you reach your goal. But the good news is that you can get there even faster if you choose a high-interest savings account. Follow us to find out how you benefit from automating your saving habit and a higher interest rate.

Why is automating savings so important?

Making savings for a long-awaited event, emergencies or, say, a retirement is a wise strategy. It helps us to always be ahead of the game. But when we are looking to cover the distance from point A (zero money) to point B, it’s crucial to decide what speed we are going to move at. A high and steady speed wins the race.

Your saving challenge is like a race. Are you moving at a steady speed or make deposits randomly, when you “feel like making a deposit”? A volatile mood is not the only hindrance on our way. Our everyday needs can eat up most of our earnings. So if you don’t secure a certain amount of money right after the payday, you have near-zero chances to cut through those needs and make a decent deposit later.

If you belong to those who easily fall into the trap of inconsistency, automating savings is your best saving plan.

Benefits of automated savings

  • Official means mandatory. When you automate your monthly deposits, you “officially” refer them to your monthly expenses. This commitment greatly reduces your temptation to skip the payment.

Still unconvinced? How about

  • Peace of mind. Once you step into a monthly contribution program, you no longer ask yourself questions like “How much do I have to deposit this month?” or “When do I reach my final goal?” Because you know the answers.
  • Lots of time saved. Once automated, “making a deposit” can be struck off your to-do list. You can focus on other tasks.
  • More money saved. Making a deposit from your paycheck, not your leftovers, guarantees that more money hits your savings account every month.
  • Reaching goals faster. When you decide to automate your savings through a savings account in Kenya, you can always go for the one with a higher interest rate. This means your money is not just being accumulated but also growing.

While developing your best saving plan, it’s important to define the pace that will be comfortable for you and your family. It’s up to you to decide how aggressive you want to be on your way to your savings goal.

There are several ways how your savings can be automated

  • You can stay with your current bank and set up a deposit or a savings account there. Be aware of the bank fees (maintenance fees and minimum balance fees) and ensure the interest rate isn’t too low.
  • Leverage your employer’s deposit (if any): this way, a pre-defined fraction of your salary goes directly to your deposit.
  • Open a savings account at one of your local savings and credit cooperatives (SACCOs). The benefits here include higher-interest rates and a superior fee-free service.

How to open a savings account with a high-interest rate?

The rule of a thumb says that you find higher-interest rates online. So if you are looking for a real speed-up for your savings plan, consider opening an online-only account. MOMBO SACCO offers the most competitive interest rate of 6% on your monthly deposits of minimum KES 3,000. No maintenance fee is applied, so you can be sure no shilling is lost from your savings. Enrollment is simple using the MOMBO App or through the website.

Automating your finances, start with modest feasible monthly deposits. Later on, you can increase your monthly commitment once you are doing well. Usually, 10% of your paycheck is a comfortable and efficient pace of saving.

Big Wedding or a New House? Here Is How High interest Savings Account Helps You Have Both!

High interest Savings Account

Starting a new family in an own, new house sounds like a dream. However, many couples are far from this dream financially. The wedding theoretically comes before a new house. But it often eats up tons of money, and newly-weds start to save for a house from scratch. Such scenario makes these two important events quite separate in time. Does it mean there’s no chance for a dream to come true? Of course not! If you both dare to be so wise and calculating, you can have both a wedding and a house and fast! We’ll tell you how to save up for two events simultaneously with a high interest savings account.

Are you ready for the adventure? Great! But first, you’ll need to stop and do some heart-searching to check if you both are on the same page.

Analyse your Dreams and Means

You both have to be honest about your goals and financial means with each other. It’s one of the pillars of harmony in the family. So start practising it early. Have a sincere talk about your goals and priorities. Which event do you want first? What kind of property fits you both? Do you want to have a honeymoon and how lavish you want to be on your first trip as a family? Discussing it now prevents you from unpleasant arguments down the road.

Even if you decide to save up for both a wedding and a house, it’s important to agree on your top priorities. Sometimes life makes its amendments to your saving plans. If circumstances change and you have to pause one of two saving activities, which one would it be?

Some Ideas How You Can Save on a Wedding

Both a wedding and a house can be as expensive as you want them to be. It’s up to you to decide what your upper limit would be. There will always be a temptation to overspend. But you don’t want to get into a big debt and start a new life completely broken. Here is how to reduce the wedding cost.

  • Make a wedding list. Include things or activities you want to have on that big day. Then strike out unimportant things you added just to impress others. Isn’t it better to use this money for your new house instead of blowing the budget? Don’t look at other people, but think what will work best for you two.
  • Shortlist guests. Invite only the closest relatives and friends. Don’t be afraid to insult others as long as you honestly explain why you keep your wedding smaller.
  • Ask friends and relatives for help. Such things as a wedding cake, photography and video can be handled much cheaper by somebody you know well.
  • Postpone your honeymoon. There is no crime in having it later, after you become house owners. The vacation will be even sweeter after that.

How to Open a Savings Account for a Wedding and a House?

Start with defining your budgets for both. The time you need to save up for these 2 events can differ a lot depending on the saving account you choose. The point is in the interest rate. You need a high interest savings account to reach your goals faster. Next, if you opt for a no-fee savings account, you also avoid maintenance fees. It means everything you save up goes towards your future family pocket. With Mombo App, you can open a savings account in Kenya that will be both high interest and no-fee. You get 6% annual yield on your monthly instalments (minimum 3,000 KES). But the biggest benefit is that after 3 months you can take a loan worth 5-fold your savings. What does it mean? You can have the wedding and buy a new house 5 times faster! Then you just pay off comfortably at lowest possible 12% interest rate.

Tip 1: We recommend opening two separate accounts. One for a wedding and another for a new house. This way you can take loans separately and decide how fast you want one or another event to happen.

Tip 2: Another idea how to speed up your saving for a house. Consider creating a fund to which your relatives and friends can contribute money instead of bringing a wedding gift. Use money from this fund to grow your “house” savings account.

What’s Your Travel of a Lifetime? Open a Savings Account to Make It Come True

Everyone has a place they dream of appearing in one day. Or maybe you belong to those nomads who buy a one-way ticket and roam the world farther and farther… until they come back home from another side of the globe. You may imagine yourself hitting Australian waves with your surfboard. Or starring at Mona Lisa in Louvre. But you are still far, far away from your dream… without a budget. Travels cost a pretty penny, and you need a realistic saving plan to fulfil your travel of a lifetime. (Something more realistic than winning the lottery or inheriting a fortune from an uncle you didn’t even know existed.) We’ll show you how to open a savings account that helps you save up for your dream adventure 5 times faster. But first,

Where to take money to save up for a trip?

Tip number one: become an ascetic. We don’t mean giving up pleasures of civilization totally and living in a tent. In our situation, it means understanding the real value of things and buying sensibly.

Every single day, we fork out lots of money on things marketers impose on us. For example, you are going to buy one more pair of fancy flip-flops or jeans… Measure how much it costs in terms of travel. Maybe you are just going to blow a day trip budget of your future journey.

Everyone has their own cash suckers. Car, nights out, smoking, impulse buys, dining out, services like washing, taxis and so on. We don’t suggest you must cut them out totally… But limiting your pleasures can save you lots of cash. Do your own washing and walk or cycle instead of driving. Take meals and snacks from home or take a roommate to reduce your rent and bills. You can continue the list.

The blogger Rebecca Foster (who is a marketer herself) suggests giving up a pricey “coffee habit”. In a monthly perspective, it may cost us a plane ticket.

You don’t have to stint yourself forever. Think of these limitations as like you just postpone them until you get to your destination. Your efforts will pay back powerfully when you will be savouring your cup of coffee at the gourmet coffee house in, say, Vienna. Or enjoy a crazy night out in Thailand. Or bring a pair of exclusive flip-flops from, say, Hong Kong.

Of course, such measures won’t make the whole trip budget. You will need a sound saving plan and probably even financing to reach your travel budget. But it’s still an opportunity to save up for more entertainments out there.

Tell others about your dream

Saving up for a trip will be easier if your family and friends know about your goal. Real friends will understand why you refuse to have a night out in an expensive club and maybe even compromise choosing a cheaper option. Or perhaps your parents or friends will consider giving you money for your next birthday instead of presents.

Open a savings account with a loan feature

Savings accounts aren’t all the same. The interest rate differs from bank to bank and so do other features. Your most winning option would be to open a savings account that features no maintenance fees and offers a high-interest rate. Also, check out an opportunity to borrow against savings while searching for your best online savings account. You can find all these features in MOMBO’s savings account in Kenya.

How to open a savings account with MOMBO?

Download the MOMBO App from your OS store and become a member in minutes. After enrolling, you start growing your monthly deposits at the 6% annual percentage yield. We ensure you never lose a penny on maintenance fees and other hidden discharges. After three months of saving, you can request a loan worth 5-fold your accumulated savings. With the MOMBO’s high-interest savings account, you don’t have to wait until you gather the whole amount needed for your trip. You can set off once your savings reach one-fifth of your travel budget.

Want to Buy Your Dream Car 5 Times Faster? Check out Our Best Saving Plan

Best Saving Plan

For most of the young people in today’s busy world, a car isn’t a whim but rather a necessity. Just to settle more things during the day and give your family a comfort of travel it deserves. Whether you are looking for a new or a used car, prohibitive prices may really discourage. But the good news is that a car doesn’t have to literary cost you “an arm and a leg”. We are here to suggest the best saving plan that has already got many Kenyans behind the wheels of their own cars… And 5 times faster! No drastic measures like selling your organs, no scams. Just pure math.

So, first, check out our car buying tips:

Pick a model of a car you dream of buying

This step will help you to figure out the amount of money you’ll need to save up. Will it be a new or a used car? High-performance one or a fuel-saving option? Decide on a make, model and a year, the type of transmission and other details. Don’t be guided by the official stats only. If you want to find a safe and reliable car that fits your needs, make sure you check out customer and professional reviews. Listen to what real people say about this make and model and about how it cost them in 3 or 5 years after the purchase. Remember that while saving for a vehicle, it’s crucial to save on the vehicle as well!

Got the picture? Of course, you can change your mind later… But this first “visualizing” experience has a great power to get you through the whole process of saving.

Decide on the payment method

Many people skip this step thinking it’s unimportant. But if you are going to make the purchase through financing, it is mega important. A couple of percent difference in the interest rate can obscenely increase the price of your car in the long run. So if you cannot buy the car in full and have to rely on a loan, start shopping for the lowest possible interest rate now. Do your research and compare rates at different dealerships or consider searching for low-interest loans online.

Define a budget and the pace

Now that you already know the type of the vehicle you need, you can decide on how much you can spend on it without feeling guilty. Now ask yourself how much money you can set apart from your every paycheck. Then, do your math and find out how many months separate you from your dream car. Or the opposite, if you need a car in a specified time frame, calculate how aggressive you have to be in your monthly savings.

Save on a consistent basis with a savings account in Kenya

The math can sound really simple, but saving up the required amount month after month isn’t simple at all. We, people, are lazy creatures that easily get distracted and demotivated. That is why we need a system that would keep us faithful to our goals and make savings happen automatically. The best trick to guarantee such consistency is to open a savings account and get your savings deposited on it on a monthly basis.

If you want to get the best boost for your savings, opt for a high-interest savings account with a low-interest loan feature. Check out Mombo saving account that enables you to grow your monthly instalments (minimum KES 3,000) at the annual interest rate of 6% and then take a fivefold loan just after 3 months of membership. So once your savings reach one-fifth of the car price, you can buy a car right away and continue to pay off the loan at the lowest possible 12% interest rate. No dealership or bank ever offered such favourable terms.

Become a car owner 5 times faster!

A 25-year-old lady who just graduated college asked us if we could finance her purchase of a car if she saved with us. She enrolled in MOMBO and started saving in July 2015. By March 2017, she had saved KES 150,000. We financed her to get a car worth KES 750,000. She is still paying comfortably and is even considering disposing it and upgrading to a better car.

Saving up for a car can be tricky and painfully long unless… Unless you leverage the 5-fold loan feature that gets you behind the wheel of your own car 5 times faster!

Savings and Credit Cooperatives vs Banks: Where Is Your Money Better Off?

savings and credit cooperatives vs banks

Want to save up money or get a loan in Kenya? Basically, your only options are banks and Savings and Credit Cooperatives (aka SACCOs). The latter is a sort of a credit union. They both offer features such as saving and loans, but the experience is very different.

Banks have been there for ages. Savings and credit cooperatives are relatively new on the market of finance. But old doesn’t always mean good. We’ll tell you the basic differences between banks and SACCOS in Kenya to help you find the best place for your money.

The main difference lies in ownership

Surprised? Banks and Saccos have different forms of ownership. Believe, it’s a big deal because it greatly defines how your money feels there. People who stand behind banks are the investor(s). They put their money in the venture and logically expect very high returns. They make a profit at your expense. This explains draconian interest rates on bank loans.

A SACCO exists “not for profit”, but for the support and satisfaction of people who hold its shares. Registered SACCOs in Kenya give their members access to better deals in form of a higher interest rate on savings and lower – on loans.


The greatest thing about banks is that their loans are always available. Although you might need collateral to borrow larger amounts. Other pleasant features are a dense net of ATMs and mobile banking with a transfer feature.

Things to keep in mind when dealing with a bank

  • Notorious high-interest rates that can go higher during the loan’s lifespan.
  • Interest rates on savings are very low.
  • Except for interest rates, banks make money on various fees they withdraw from your account. Be ready to pay insurance fees, minimal amount fees, accrued interest fees, processing fees, account maintenance fees and so on. With some banks, you even have to pay for paying your loan off early. They call this ridiculous fee “early repayment charge”.
  • Finding a no-fee savings account can be hard. You can look for one at online-only banks.

Due to the rate capping, banks rates in Kenya now are at a maximum of 15%. Banks give out loans very reluctantly as they find unsecured lending very risky. This option is saved for mobile banking loans, which aren’t interest capped. Such situation forces many individuals and SMEs to run for other expensive money lenders.

If you still decide to get backed up with a bank, ensure you choose a reliable institution. Beware of banks that heavily rely on customer’s deposits.


Savings and credit cooperative societies exist to serve their members, not to build up profit. In Kenya, SACCOs emerged a few decades ago to fill the gap of financial services in small towns. Now they are threatening major commercial banks with their higher member satisfaction rate.

Advantages of SACCOs over banks

  • Your savings attract a high-interest rate. At MOMBO SACCO, your annual percentage yield is 6%. It means that you get 6% of your savings as interest every year. You can either withdraw them twice a year or leave them on your savings account.
  • Members can get loans at a steady interest rate as low as 12%. You can have a peace of mind that the rate won’t grow with the lapse of time. For comparison, local banks almost never offer loans at a total cost of credit lower than 20%. Usually, their offer is double the SACCO’s rate.
  • At MOMBO SACCO, you can get a loan that is 5 times bigger than your savings.
  • Your high interest rate on savings compensates the interest rate you pay on a loan. To make this happen at a bank, you need to hold a very big amount of its shares.
  • While repaying a loan, you keep building up your savings account. With the draconian rates of banks, it is psychologically impossible.
  • You can borrow money even after you give up employment. A bank would require collateral (assets) in such case.
  • As a member, you can control your Sacco by attending meetings and electing officials accountable to you.
  • Unlike banks, SACCOs in Kenya trade their shares at affordable prices. For example, the MOMBO’s share costs only KES 100. Your risk is minimal because your liability as a member is equal to the amount of your shares.
  • Unlike other SACCOS, MOMBO SACCO uniquely offers 2 streams of revenue. Except for 6% interest on savings, a member gets dividends on shares as well.

To find the best place for your money, ensure you do your research and compare terms at both registered SACCOs in Kenya and banks. Open a savings account with the society that values your input. The money you earned with a dedicated work is worth a dedicated treatment.

Here’s How To Handle Getting Fired

how to handle getting fired

Over the last couple of years, the people who have been turned away from their jobs as the Kenyan economy suffers has risen exponentially.

From banks, to hospitals, to media companies and manufacturers, job losses have become the norm as companies resort to the only way to remain profitable, cutting costs and moving digital.

This has proven such a big disruption on the otherwise comfortable lives of the blue collar workers who are used to a salary each month.

Dismissal throws workers into the deep end and they struggle to cope with family and status since currently most household are being supported by a sole breadwinner. It can usually mean breaking up of family , frustration and finally depression and alcoholism or even suicides.

It is no wonder that companies are now offering to give free counselling to the workers it has laid off in a bid to help them absorb the shock.

However, you can survive this trauma with the right mind and as they say, victory loves preparation.

According to the Retirement Benefits Authority, only one in seven people are ready for retirement meaning that probably you and your circle of friends are living precariously.

In fact, true to the Njaanuary tales, Kenyans usually burn through their incomes before the end to each month. The Kenya Deposit Insurance Corporation, found out that only 3.2 per cent of Kenyans have more than Sh100,000 in their accounts.

“As at November 2017, the KDIC coverage level was at Sh268.1 Billion with 46.6 million accounts fully covered. This translates to 96.8 per cent of total number of accounts covered,” CS treasury Henry Rotich said in the recent budget proposals.

So when the news comes that you no longer have access to the glass skyscraper that has been your second home for years, with no savings you will need to think fast.

Don’t Burn Bridges

A flurry of emotions may be the first thing that flows into your head as the decision comes with surprise after much suspense and rumours as to who will face the axe. It’s not uncommon to feel anger toward the company and certain employees.

Try not to talk when angry and never bad-mouth a former employee or employer especially online which never forgets. That small sense of satisfaction from dissing a former company will ultimately be outweighed if it costs you a future job.

It may also help to maintain bonds with your former colleagues who could easily be your referees and may even help drop some openings. The employees who are nowadays clustered in WhatsApp groups will come in handy in giving support, financial advise and giving you hope although it can sometimes sound awkward.

After being fired, aim for next, not best as you try to figure out which direction to go to. A lot of the people get stuck trying to go off on some vision quest when they lose their job. Forget that. Get your next job.

Being stuck up to a career that pays as good as your last one or trying to stay in the same career can be associated with ego, you need to strip that and assume this is your first day out of college going into internship. Anything will do.

However while you are between jobs, you have time to clear your mind and plan your rebound. While you may feel that your future is uncertain, it’s important to realize that getting fired is not the end of your career.

Your lifestyle will also have to change, you must adjust it to your new realities or the bills will come up fast and drown you.

You can start mentally preparing for such a situation as Stoics suggested we take time off to practice worst-case scenarios. We should, for example, mark out a week, a year where we eat only stale bread and sleep on the kitchen floor with only one blanket, so we stop being so squeamish about being sacked or imprisoned.

But most importantly save up at least a month extra salary so that you can always have some sort of flexibility. Ideally you should save up three months of your salary at any given point, take up employment insurance and if this sums up with your exit package, then you can last over a year on an adjusted budget while you get back on your feet.

The most important thing to remember is that everyone is dispensable. Never get too comfortable on your job and always have a contingency plan.

Plus invest in your early years of employment so that you may have a fall back business which you can take full throttle or at least an idea of how to run a business, lest you risk burning all your savings and exit package on quick fix quail businesses.

Saving 101: A Little Saving Goes a Long Way


Haba na haba hujaza kibaba is a Swahili saying which loosely translates to little by little fills the measure. With Nairobi being ranked as the fourth most expensive city in Africa, Kenyans are always on the lookout for bargains and ways to stretch the shilling. Below are some tips to keep your spending in check and ensure you are saving up your coins.


1.Banking tips

A report by Financial Sector Deepening (FSD) in 2017 estimated the lowest cost to owning a bank account in Kenya to be around Kshs 6,436 per year . This is the average cost for withdrawals, transfers and account maintenance fees. How do you make sure that these costs do not go higher?

  • Plan withdrawals– Banks charge different withdrawal fees while some accounts come with a fixed number of free withdrawals per month. Make sure to find out also from your bank the charges of withdrawing from your bank’s ATM vs. another banks ATM. The difference could be much as from Kshs 30 to Kshs 200.
  • Separate your paycheck– (savings vs. current accounts). You can withdraw from a current account anytime whereas a savings account accrues interest and has limited withdrawals. You can approach your Human Resources Officer to divide your paycheck into these two accounts or have a standing order with your bank where at a specific time of the month, money is transferred from your current to savings account.
  • Low interest loans– The growth of the fintech industry in Kenya has led to the growth of many array of loans one can have access to. There are traditional banking institutions, Sacco’s, mobile money loans apps such as Branch, Tala and Mombo. A quick Google search will present you with tons of quick and unsecured loan options. Be sure to check the reviews of such apps/sites as well as their interest rates as the devil lies in the details.


2. Shopping tips

  • Wholesale shopping– Opting for this option saves you money per unit price of items.
  • Deals/discount sites– Be on the lookout for holiday sales such as Black Friday which has caught on especially with e-commerce players such as Jumia. There are also many sales in clothing and electronic stores during the Easter and Christmas period. Buying advance tickets to events on sites such as TicketSasa will always cost you less in comparison to buying them at the gate. Restaurants also run BOGOF( buy one get one free) offers on different days of the week such as Pizza Inn on Fridays.
  • Reward cards/Coupons– Be sure to take advantage of the loyalty cards offered by the various stores especially supermarkets where you accumulate points after every purchase. You are then able to redeem such points in store which goes a long way in achieving your saving goals. Most online retailers also provide coupon codes on their social media or on newsletter for their subscribers.
  • Do It Yourself (DIY)- You can save a lot of money but requires a lot of time input. The internet has infinite ideas on DIY that can be easily executed after a visit to your local hardware store for materials or also using easily available materials in your homes.


3. Expense tracking and budgeting tips

It is paramount to know your spending habits in order to have a clear picture on where you can cut your spending. There are many apps available that can help one track budgeted expenses vs. actual spending plus investments if any.  You can also create a personal expense tracking spreadsheet that can contain spending categories with set limits which gives you visual output whenever you go over budget. Most paid apps export also export their reports to Excel.


4. Alternative income tips

Are you pushed to the wall and have barely zero savings despite the above tips? You should consider diversifying your income streams. Have you invested in any stocks or bonds?  Do you know any no fee investment funds in Kenya such as one offered by  Mombo App?  Do you have any skills that you could use to do freelance projects? The earnings from such gigs could go into your high interest savings account which will slowly but surely increase the money at your disposal.





Bank Fees Eat Up Your Savings? Open a No-Fee Savings Account!

no-fee savings account

Deep in our heads, we understand that savings account must be about saving… But what are those annoying discharges that drain our savings accounts on a monthly basis? They are maintenance fees… You must have felt their thievish manners while trying to set some cash aside for an important event or a long-desired vacation.

But you know what? You don’t actually have to pay for the privilege to save. An online no-fee savings account can cope with your savings goals no worse than a premium bank account. And even yield MORE money due to higher interest rates. We’ll tell how to make your money work harder for you with an absolutely free online savings account in Kenya.

Why is online savings account better?

Both brick-and-mortar and online banking institutions offer fee-free savings accounts. However, online-only savings accounts usually have much higher rates. So if you want a high APY (annual percentage yield) and don’t want maintenance fees, online accounts are your best bet.

You may consider looking for a fee-free high-interest savings account at your local SACCOs. They are not-for-profit financial institutions that offer prominent service and highest interest rates for their members.

Online savings accounts have another exciting advantage. You can manage and control them online using a mobile app. The MOMBO App enables you to enrol and start saving in a few finger taps.

But the list of benefits doesn’t stop here. With MOMBO SACCO savings account, you get access to a loan equal to a 5-fold amount of your savings. This makes this account an all-purpose wallet to support any of your life events. Expected and unexpected.

Benefits of a no-fee savings account by MOMBO SACCO

  • Firstly, no maintenance fees. You can have a peace of mind. You won’t ever experience any unpleasant discharges from your savings account.
  • Convenient access to your savings data from your smartphone, laptop or tablet via MOMBO App.
  • It pays you 6% interest. You can withdraw your accrued yield twice a year, in January and July.
  • The borrowing feature becomes available after 3 months of membership. You can borrow as much as 5 times your savings at the 12% rate.
  • For a loan, you don’t need a collateral (property or money used as a guarantee) for approval. Members guarantee each other with their savings.
  • For a member, qualifying for a loan is a simple and quick procedure. It takes as long as 10 minutes for short-term (6 months) emergency loans. Long-term (4 years) loans get approved in one week.

How to open a savings account at MOMBO Sacco?

  • This cooperative is only for Kenyan salaried employees, entrepreneurs, civil servants or farmers. You can enrol in MOMBO Sacco by making a request through the MOMBO App.
  • To become a member, you’ll need to pass several checks to prove you are credit worthy. Usually, it takes from a couple of hours to 3 working days to get your membership approved. Membership includes buying shares for the amount of KES 10,000.
  • After approval, you can start making deposits (minimum KES 3,000 a month) to your savings account.

Consistent monthly payments are a great way to automate your saving process and also ensure you save more than just leftovers.

Before you open an account, decide which features are crucial to you. A high-interest, loans, no fees, or a mobile app for an easy access to your account? Make sure you choose the best online savings account with the maximum set of benefits and without hidden fees. To open the fee-free savings account, please, download the MOMBO App or enrol right on this website.