The funds of the society shall consist of:

  1. Membership entrance fee of kshs of 500
  2.  An unlimited number of shares to the value of 20 each.
  3. Deposits or loans from members or non-members
  4. Such reserve funds as required by the acts and rules, capital formation funds, and such other funds as may be kept by the
  5. Any surplus resulting from operations of the society;
  6. Any donations, grants and gifts from any other bodies, organizations and individuals.
  7. Deposits protection
  8. Funds obtained from other lawful miscellaneous
  • The funds of the society shall only be applied to the promotion of the stated objects and purposes of the society as set forth in these by-laws and as determined and approved by the general meeting and by the commissioner.



  • With the approval of the managing committee, a member may at any time transfer his/her shares/deposits to another member but not to any other person. Such transfer must be in writing and at nominal value provided that shares/deposits shall be transferred in whole and not in
  • The members minimum deposit contribution per month shall be 500. However, the SACCOs general meeting has the mandate to vary the minimum monthly contribution
  • The nominal value of each share shall be Kshs. 20 and each member shall hold at least 50 unwithdrawable shares in the society but no member shall hold more than one fifth of the total shares of the society. Non-member shall not hold share but shall hold deposits.
  • a) All transfers of shares/deposits must be registered with the secretary, and no transfer shall be valid unless so registered. The committee may require payment of Kshs 1000 or as it may decide from time to time for each such

b) The society may not buy back any shares due to a member who want to transfer or resign the membership but may do so if it has shares transfer funds.

  • a) The society shall keep separate accounts for member’s shares and

b) The liability of each member shall be limited to the nominal value of the number of shares held by him/her.



27       a) loans may be obtained from members and non-members, subject to the maximum amount and terms approved by the general meeting and the commissioner.

b)For the necessary securing of any loans accepted by the society under paragraph (a) of this by-law, the society may grant a charge over the assets of the society.

The authority to grant a charge shall be made through a special resolution of general meeting.

c)The rate of interest on the deposits, or loans shall be determined by the management



The society may invest or deposit its funds only:-

  1. In and upon investments and securities as for the time being authorized for the investment of trust funds;
  2. In a capital formation fund which shall be only applied in project approved by members in a general meeting and the commissioner.
  3. In the shares and deposits of any other co-operative
  4. With any banking license under the banking
  5. In the stock of any statutory body established in Kenya or in any limited liability company incorporated in Kenya or in any other manner approved by a resolution at a general meeting of the said
  • Money paid in or out on account of shares, deposits loans, interest fees or fine shall be evidenced by a receipt and an entry in the statement of account or any other forms of receipt or statement approved by the management committee. Every person receiving or paying out any money on behalf of the society shall be identified on the receipt.
  •  Should the receipt or the statement of account given to the members by the society be lost/destroyed, immediate notice of such fact shall be given by the member to the treasurer/manager who may be authorized by the management committee to issue a duplicate receipt or statement. The committee may require the member to sign an indemnity to protect the society against any lose to the issuance of such duplicate. The committee may also require payment to the society of a reasonable amount to cover the cost of issuing the duplicate receipt or statement.



The society shall maintain a statutory reserve fund which shall be invested in the manner specified in by-law 28 above.


The financial year of the society shall run from 1st January to 31st


Subject to the Act, the Rules and by-laws, and approval by the general meeting, the surplus resulting from the operations of the society during any financial year shall be disposed as follows:-

  • 20% shall be credited to the statutory reserve fund
  • The balance may be disposed of as decided by the general meeting for:
  1. 1.Paying divided on shares at a rate to be decided from time to
  1. 2.Paying an interest refund to members on record at a close of the financial
  • Being carried forward to an education fund, shares refund account or to any other funds of the society as may be approved by the general meeting from time to
  1. 1.Paying a gratuity or honorarium/bonuses to elected management/supervisory committee members and employees of the society.
  1. 2.In any other way approved by the general
  1. 3.In case there is a deficit it should be brought forward to the following year.