Membership Application

Sacco By-Laws

Membership Withdrawal

A member can withdraw from the Society under the following conditions:-


The board or the general membership may expel a member who:-

  • Is convicted in a court of law for a criminal offence involving dishonesty against the Society’s property(ies).
  • Acts in any way prejudicial to the interest of the Society.

Voluntary withdrawal

  • A member may at any time withdraw from the Society by giving a written notice at least 60 days provided that deposits shall not be withdrawn in part but in whole.
  • No member shall be allowed to withdraw from the Society’s membership unless all the outstanding loans are paid in full or loan balances can be fully offset by the shares.
  • Such a member will also have to satisfy the Society that all loans guaranteed have been paid in full or alternative guarantors provided.

Defaulting in loan repayment.

If a member defaults in loan repayment, the Society has an option to offset the outstanding loan(s) against deposits and close the account. If the loan is more than the deposits the differences is recovered from guarantors.


Upon death membership ceases.

Note: Notification of a member’s death should be made within a period of six months.


  • The guarantee must secure all the loans applied for. The total deposits of the borrower and those of the guarantor(s) must be equal to or more than the applied loan. All guarantors must be active members of the Society.
  • A member must not guarantee more than his/her net deposits.
  • The board members, the supervisory committee and Secretariat cannot act as guarantors for loans borrowed from the Society.
  • The obligations of the previous guarantors ceases when loans guaranteed have been fully paid or upon change of guarantors but subject to new guarantors being accepted by the Society’s Management.
  • Incase of default in loan repayment, guarantors are severally and jointly responsible for the defaulted amount. Deposits at the time of guaranteeing and future deposits shall be used to offset defaulted loans and interest.
  • Land title deed or logbook can also be used as collateral and the property must be charged during the loan repayment period.