Shares and Deposits
Each member shall purchase at least one share of Ksh.1, 420 each. Shares shall not be refundable or assigned as collateral for a loan, but a member may transfer his shares to other members on leaving membership of the Society.
Shares earn dividends paid from net surplus after required transfers to reserves at the end of a financial year in accordance with the dividend policy of the Society.
These deposits are used as collateral against borrowings from the Society and shall only be refunded when a member withdraws from membership and provided the member has fully repaid all his debts and is free from guarantee.
Non-withdrawable deposits shall be contributed on monthly basis or at such prescribed periods Interest on deposits shall be paid at a rate that shall be determined by the board at the end of the year after the external auditor has completed the books of accounts.
Fosa Deposits- The deposits are used as a collateral against borrowing of Inua Loan (Five times the Deposits). To build these deposits, 5% of Net take home loan is deducted, Interest on deposits shall be paid at a rate that shall be determined by the board at the end of the year after the external auditor has completed the books of accounts.
The Society shall operate withdrawable savings which shall be savings accounts. These deposits accounts shall be prescribed under terms and conditions of opening, operating and closing of accounts, interest rate calculations and payments. In additions the SACCO shall make the following information available to members:-
- The minimum amount required to open an account and the minimum balance;
- The minimum interest bearing balance;
- The interest rate and fees applicable;
- The penalty for early withdrawal or withdrawal above set limits, if any; and
- The maturity of a fixed deposit account
- Ledger fees are not charged
For joints and group accounts, disclosures made to any one of the members shall be deemed to be made to all members.