FAQ

Membership queries

  1. What are the membership requirements?
  2. How do I become a member?
  3. Who is a member?


Membership Admission

  1. Completion of Membership form.
  2. Provide a copy of National Identity Card
  3. Membership Application Fee of Kshs.500/=


Deposit Queries

  1. What is the minimum contribution? The minimum contribution is Kshs 1,000.00 per month.
  2. What is the difference between deposits and shares?
    • Deposits are withdrawable members’ savings while shares or share capital is the permanent member contribution towards the Sacco’s capital and forms part of the Sacco’s equity. Shares cannot be withdrawn even on exit from the Sacco but can be transferred to another willing member.
    • Each member must have a minimum of Kshs 2,000.00 in the share capital account unlike deposits, which have no minimum amount.
    • Deposits earn Interest while Share capital earns Dividends
    • Deposits can be used as loan security while share capital cannot be used as loan security.


Loan Queries

  1. When do I qualify to take a loan? You qualify to take a loan after six months of consistent contribution to the Sacco.
  2. What is the maximum Loan I am entitled to? You are entitled to a maximum loan equal to three times your total savings (Deposits)
  3. Can I have more than one loan at the same time? Yes. You can have several concurrent loans so long as they do not exceed your maximum loan entitlement three times the number of your deposits and you have the ability to pay all of them.( 66% rule.
  4. What do I require to take a loan? To take a loan, you need to have a dully-filled loan application form supported by:
    • Payslip for employed members
    • Photocopy of National ID – for Class B.
    • Certified bank statement for the last six months - Class B
    • Business registration certificate - Class B
  5. What is the maximum Loan repayment period? The maximum loan repayment period is 36 months.
  6. What are the reasons for rejecting my loan? A loan can be rejected on the following grounds:
    • In case of inconsistency in Deposits contributions
    • Inadequate guarantors.
    • Insufficient income leading to the total deductions beingover 66%.
    • If the form is not duly completed.
  7. Can I reduce my loan period instalment due to cash flow constraints? You cannot adjust or reduce loan instalment unless you had previously overpaid your instalment. Emergency loans are processed within two working days if all requirements are met.


Refinance Loan

A refinance loan is an additional loan to an already existing normal loan. This loan is issued where a member is unable to finalize a project with the loan earlier taken and needs a top up to finish the project.

  1. The new refinancing loan repayment period is determined by the previous loan repayment period.
  2. Repayment of this loan should end at the same time with the loan earlier taken.
  3. The loan should be granted within a member’s entitlement
  4. The interest charged is 1% per month on reducing balance.


Loan Repurchase

  1. This loan gives members access to a new bigger loan on fresh terms and the maximum repayment period is 36 months.
  2. Repurchase loan is applicable to members who wish to apply for a loan while still servicing a previous loan.
  3. A commission of 10% is charged on the outstanding Balance.


Withdrawal Queries

  1. What is the procedure of withdrawing from the Sacco? You need to apply for withdrawal from the society by filling a formal withdrawal form giving the Sacco sixty days notice in lieu with the Sacco’s Bylaws.
  2. Can I partially withdraw my deposits? No member is allowed to partially withdraw part off his or her deposits.
  3. Can I withdraw my deposits when I have guaranteed another member? A member cannot withdraw part of deposits that have been pledged towards another members’ loan unless that member has cleared that loan or has submitted a substitute guarantor to replace you.