a) Savings and Credit Co-operative Societies
These are formed to provide financial support to members. They accept deposits to members and grant them loans at reasonable interest rates in times of need.
The objects of a Sacco are:
- To promote thrift among its members by affording them an opportunity for accumulating their savings and deposits and create thereby a source of funds from which loans can be given to them exclusively for provident and productive purposes, at fair and reasonable rates of interest; thereby enabling them to use and control their money for their mutual benefit.
- To ensure personal growth through the introduction of new products and services that will promote the economic base of the members.
- To ensure progress of members and society through continuous education programs on proper use of credit, reduction of poverty, human dignity and co-operation.
- To apply the co-operative principle of co-operation among co-operatives in order to promote members’ interests. In furtherance to the objects the society shall affiliate to the relevant National Co-operative Union and the Apex society.
b) Housing co-operatives Societies
These are co-operative societies formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rates of interest to members to construct their own houses.
The objects of housing co-operatives are:
- contracting for loans from non–members by issuing debentures or mortgaging its property or by any other means up to a maximum amount to be decided by the General Meeting.
- Lend money to members for the purpose of;
(a) Acquisition of living accommodation for themselves,
(b) For income generating purposes on such terms and with such security as the Management Committee may from time to time determine or guarantee loans and advances to members for similar purpose.
(iii)Undertake building operations by such means either directly or indirectly as the committee may decide.
(iv) Acquire supplies of building and similar materials and machinery of all kinds including household furniture and equipment for use in building or for sale or hire to members.
- Acquire and relinquish lands, buildings and rights over land and buildings by purchase, lease or any other means as may be necessary for the attainment of these objects.
- Employ architect, builders, contractors, issue plans negotiate and contract for services for light and power, water drainage, roads, and generally do all such things as are necessary and customary for the acquisition of land and its development for housing purposes.
- Enter into contracts with members for the sale or lease of land and building acquired by the society in pursuance of its objects on such terms and conditions as may from time to time be determined.
- Ensure progress of members and society through continuous education programmes on proper use of credit, reduction of poverty, human dignity and co-operation.
- To apply the co-operative principle of cooperation among cooperatives in order to promote members’ interests and in furtherance to the objects of the society affiliate to the relevant National Co-operative union and the Apex society.
c) Consumer Co-operatives Societies
These societies are formed to protect the interest of general consumers by making consumer goods available at reasonable price. They buy goods directly from the producers or manufactures and thereby eliminate the middlemen in the process of distribution.
d) Agriculture/Farmers Co-operative Societies
These are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming.
e) Producer Co-operative Societies
These societies are formed to protect the interest of small producer by making available items of their need for production like raw materials, tools and equipment, machinery etc.
f) Marketing Co-operative Societies
These are formed by several producer and manufacturers who find it difficult to sell their products in their market. A good example is the Kenya Co-operative Creameries that deals with milk.
The objects of a marketing co-operative are:
- To arrange for co-operative marketing, processing, grading, packaging and transporting the members produce and such other operations as may be necessary for the most profitable disposal of the produce.
- To arrange for the purchase and resale of farm inputs and chemicals and other similar requirements of the members.
- To take measures to control pests and diseases.
- To foster education and training of members, committee members and employees.
- To provide co-operation and good will between members and the society
- To Co-operate with other co-operatives in order to promote members interests and in furtherance of the society’s objectives.
- To apply the co-operative principle of co-operation among co-operatives in order to promote members’ interests. And in furtherance to the objects of the society affiliate to the relevant National Co-operative Union and the Apex society.
g) Investment Co-operative Societies
The objects of an investment co-operative are:
- To invest members’ contributions in prudently identified ventures in order to maximize the return on their investment.
- To acquire, lease, or otherwise dispose of the society’s building(s) and other fixed properties as necessary.
- To purchase, take on lease or exchange, hire or otherwise acquire any movable or immovable property of any kind of any interest therein any right or privileges which the management committee of the society may think necessary or convenient for the purpose of or in connection with Society’s business or which may enhance the value of any other property of the society.
- To improve, manage, develop, and turn to account, grant rights or privileges in respect of or otherwise deal with any of the property, rights and privileges of the society.
- To acquire and undertake the whole of any part of the business, assets and liabilities of any person or Society carrying on or proposing to carry on any business which the society is authorized to carry on or which can be carried on in conjunction with any business of the Society or which is possessed of property suitable for the purpose of the Society.
- To pay out the funds of the society, all expenses which the society may lawfully pay for or in connection with the formation and registration of the society.
- To amalgamate, enter into partnership or into any arrangement for sharing profits, union of interests, co-operation, joint ventures, reciprocal concession, limiting competition or otherwise, with any person of society carrying on or engage in or can be carried on in conjunction with any business of the society or which is capable of being conducted so as to benefit the society, directly or indirectly.
- To borrow money or receive money or deposit either with or without security or secured by debentures, mortgages or other security charged on the undertaking or on all or any of the assets of the society.
- To subscribe for, underwriter, buy, hold, sell and deal (either on or off a stock exchange, and either as principles, agents or trustees) in every description, to advice on investment of all kinds, to advice on, assist and deal with issues, offers for sale, and generally to carry on the business of stock and share brokers.
- To remunerate any person or company either in cash or by allotment of shares credited as fully or partly paid up, for services rendered or to be rendered in placing or assisting to place or guaranteeing the placing of any of the shares in the Society’s capital of any debentures, debentures stock or other securities of the society or in or about the formation or promotion of the society of the conduct or development of its business and to pay out of the funds of the society all expenses and incidentals to its formation and registration.
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