Mist have active membership. Management and gavernace. Registrated with ministry of trade. The Sacco must be licenced by UNRA. Must have ground rules policy. Strategic business plan policy. If the members are owned they should hold regular meetings. Pitfalls to avoid. If you're operating outside the law. Members must own the Sacco, Poor leadership, manager who is micro managed. Insider lending, end up daulfing and pass requests to write off the loan. Poor liquidity planning (available cash) management. Politics in Sacco . Management must be strict. Reduce external borrowing.