Objects of the SACCO Society
The objects for which the Society is established are to: –
- Promote thrift among its members by affording them an opportunity for accumulating their Savings.
- Create a source of funds at a fair and reasonable rate of interest.
- Provide an opportunity for each of its members to improve the members’ respective economic and social conditions.
- Provide members with credit for purposes of providence or production or both.
- Offer to the members complementary Savings and Credit services and other financial products and services as may be required by the members
- Ensure safety and soundness of the members’ funds through a Risk Management Programme or appropriate insurance coverage.
- Ensure the progress of its members by educating them continuously on the proper use of financial services.
- Perform the function and exercise the power designated for Savings and Credit Co-operative Societies under the applicable law for the benefit of the members.
For the attainment of the above objects, the Society may do all acts and things that are permissible under the Co-operative Societies Act, the Rules, the SACCO Act and Regulations and these By-laws provided that members at General Meetings approve such act or things either specifically or generally.
The objects of the Society shall generally be in accordance with the Co-operative values and principles.
Co-operative Principles
In order to achieve the objects for which it is established, the society shall practice the following Co-operative Principles:
- Voluntary and open membership
- Democratic member control
- Economic participation by members
- Autonomy and independence
- Education, training and information
- Co-operation among co-operatives and
- Concern for community in general
The Board of Directors and Management shall endeavour to provide timely information, promote co-operation and understanding amongst members and with other co-operative institutions locally, nationally and internationally.
Membership Qualifications
A person of either sex shall be eligible for membership if he/she possesses either or all of the following qualifications:
- Is within the field of membership,
- Is not less than eighteen years of age, if a natural person,
- Is not a member of another salary based SACCO in the country
- Is not directly, a money lender or carrying out such activities detrimental to the objectives of the Society
- Is of good character
- Has regular income from employment, business or trade
- Is an employee of the society or a subsidiary of the society
- Is resident within or occupies land within the society area of operation
- Is in employment, occupation or profession which falls within the category or description of those in the banking and allied sectors,
- Is a member of the immediate family of a member admitted into membership subject to the terms and conditions set by the Board of Directors and approved by the Members Meeting;
- Is a nominee and approved into membership by the Board
- Pays the prescribed entrance fee, shares and monthly savings.
- Accepts the objectives of the society, the obligations of members and other conditions as stated in these By-laws.
Provided an employee of the Society may become a member of the Society but shall not be a delegate or member of the Board except as specifically provided in these by-laws.
Membership Rights
Subject to these By-laws, policies, standards, values and procedures, all members shall have the right to use the Society’s Services and exercise the rights established by the Act, the Rules and By-laws, the members are entitled but not limited to: –
- Receive, periodically and regularly, or upon request, and at least once a Year, a Statement of Accounts containing the individualized record of his/her credit and debit transactions.
- Attend and participate in elections within the electoral zone. Each member shall have one vote irrespective of the member’s total share holding.
- Elect representatives to attend and participate at a General Meeting.
- Elect or be elected as a Board member of the SACCO Society unless otherwise prohibited by any other Law or these By-laws.
- Use the SACCO Society Services according to the Policies and Procedures approved by the Board of Directors.
- Submit projects or initiative to the Board of Directors, for the improvement of the Society Services.
- Appoint a nominee
- Share in surpluses (Dividends and interest on deposits)
- Access all legitimate information relating to the society, including Internal Regulations, registers, minutes of the General Meetings, Supervisory Committee, Reports, Annual Accounts and Inventories, Investigation Reports, at the registered office of the society subject to the SACCO policy and regulations for the time being in force
- Vote on all matters put before the electoral zone.
- All other rights as prescribed by the Act and Rules
Members Obligations
In accordance with the Act, members of the Society are obliged to: –
- Be faithful and honest in all their dealings with the society.
- Observe the law, the rules and these by-laws whenever transacting any business with the society.
- Observe the code of conduct and ethics for cooperative societies and in particular desist from any corrupt practices in all dealings with the society.
- Refrain from engaging in the business of money lending in competition with the society.
- Protect the image of the society and avoid unnecessary publicity, incitement or careless talk that can injure the reputation of the society.
- Pay their debt obligations to the society without fail and save regularly with the society to mobilize funds for lending to the members.
- Seek cooperative education to improve membership awareness and enlightenment.
- Attend meetings and education forum and take part in decision-making.
- Inform non-members and encourage them to join the Society,
- Bring out problems affecting the Society and look for solutions,
- Participate in the Society projects both physically and financially
- Make use of the services of the Society as stated in the objects of the society,
- Comply with these By-laws, the Co-operative Societies Act, SACCO Act, Rules and Regulations and General Meeting Resolutions