What is Guarantor (SACCO)?
In a SACCO, a guarantor is a fellow member who commits their own deposits as security for another member's loan, typically for the portion that exceeds the borrower's own deposits. If the borrower defaults, the SACCO can look to the guarantor's committed deposits. Guaranteeing also generally reduces the guarantor's own borrowing capacity for as long as the guarantee stands.
A real Kenyan example
A member borrowing above their own deposits asks three colleagues to guarantee the excess. Each of those colleagues has a portion of their deposits committed and less headroom to borrow themselves until the loan is repaid.
Why it matters
Guaranteeing is routinely treated as a courtesy and is in fact a financial commitment with two consequences: exposure to someone else's default, and a reduction in your own capacity. Both are worth understanding before signing, and before asking.