WE ARE 389 ON OUR FACEBOOK PAGE!! HOW WILL OUR SACCO LOOK LIKE IF WE WERE TO FORM ONE?

Thanks for joining this page and for visiting the main site. Now we are 389. That’s is incredible. We can form a co-operative society a savings and credit type (Sacco), and the law requires only ten people. Only ten!!

CAN WE REGISTER IT?
CAN WE REGISTER IT?

Lets assume we all want to form a co-operative. We call it Facebook Sacco. Our area of operation is Republic of Kenya. We all agree on postal and physical address of our society. Our common bond is Facebook users who have liked “Co-operative Movement in Kenya” (am sure commissioner won’t buy that!!!). The entrance fee/registration fee we all agree to set it at Ksh. 500. We also agree that one share is Ksh. 20 (i.e. nominal value of one share) and the minimum number of shares is 100 and therefore the non-withdrawable share is Ksh. 2000 and we set transfer of share fee at Ksh. 200. We all unanimously agree also that our minimum monthly contribution (deposits) should be Ksh. 2000.

If we all pay the entrance fees, we will have Ksh. 194,500. This is more than enough for registration and buying few stationary for our society and also remain with some cash that we can loan to our members! Saccos don’t give loans until they are six months old, also members don’t qualify for loans until they are six months old and have been contributing consecutively. We are all contributing Ksh. 2000 per month so every month our account will be reading Ksh. 778,000. In six months, we shall have savings of  Ksh. 4,668,000! Now after six months we can loan to few of our members. Of course by then we will have a loan policy that will control loan granting, repayment terms, etc.

Who is not feeling all nice now? Questions?

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5 Responses

  1. […] We Are 48 on Our Facebook Page!! (funnyardstick.wordpress.com) […]

  2. […] We Are 48 on Our Facebook Page!! (funnyardstick.wordpress.com) […]

  3. Is there a minimum capital requirement for registration of a Non-deposit taking SACCO?

    • Nope. None is required.

      Co-operatives Societies Act Cap 490 Section 5 states: For a society to be registered under this Act, it must:-
      (a) in the case of a primary society, consists of at least ten persons all of whom shall be qualified for membership of the co-operative society under section 14, or; Essentials for registration of co-operative society
      (b) in the case of a cooperative union, has at least two registered societies as its members.
      Section 6 states. (1) An application to register a society shall be made to the Commissioner in the prescribed form, and signed;
      (a) in the case of a primary society, by at least ten persons qualified for membership of the society under section 14; or,
      (b) in the case of a secondary or apex society, by persons duly authorized in that behalf by each co-operative society or co-operative union, as the case may be, who are members thereof.
      (2) The application shall be accompanied by copies of the proposed by-laws in English and the person or persons by whom or on whose behalf such application is made shall furnish such information within regard to the society as the Commissioner may require.
      (3) If the Commissioner is satisfied that a society has complied with this Act and any rules made thereunder and that its proposed by-laws are not contrary to this Act or any rules made thereunder, he may register the society and its by-laws under this Act.

      SASRA only licenses Saccos with FOSAs and SACCO Act has no provision for registration. So you only need 10 people to register a Sacco!!

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