Starting a Matatu Savings and Credit Cooperative Organization (SACCO) in Kenya is a viable business opportunity that can be both profitable and impactful.

Matatus are the backbone of Kenya’s public transportation is system, and forming a SACCO can help organize and manage these services more efficiently.

This guide will walk you through the steps required to establish a successful Matatu SACCO, from understanding the legal requirements to managing operations.

Understanding What a Matatu SACCO Is.

A Matatu SACCO is a cooperative society that brings together owners and operators of matatus (public service vehicles) to provide organized transport services and financial support to its members.

The SACCO model is beneficial as it provides a platform for pooling resources, accessing credit facilities, and ensuring compliance with regulatory requirements. Members of the SACCO collectively own the cooperative, share profits, and benefit from services such as vehicle financing, maintenance, insurance, and route management.

Legal Requirements and Registration.

The first step in establishing a Matatu SACCO is to ensure that you comply with all legal and regulatory requirements. In Kenya, SACCOs are regulated by the SACCO Societies Regulatory Authority (SASRA), which sets the guidelines for the formation and operation of SACCOs. To register your SACCO, you need to follow these steps:

Preliminary Meetings: Gather potential members to discuss the idea of forming a SACCO. You will need at least 10 members to start the process. During these meetings, draft a constitution that outlines the rules, regulations, and governance structure of your SACCO.