Frequently Asked Questions


1. Question: Do I qualify to become a member?

Answer: If you are a permanent employee or on a minimum of year contract in one of the affiliate institutions.

2. Question: How Do I join if I qualify?

Answer: Fill in a membership application form than can be collected from the SACCO office, or a SACCO official in the various institutions, or can also be downloaded from the website. Attach a recent passport size photo, a copy of national ID or passport and registration fees of sh.1,000 (subject to change). Once the form is filled it is passed on to the SACCO’s office or presented to the official with the relevant attachments.

3. Question: How much is the minimum and maximum contribution I can make towards the shares?

Answer: A member can contribute as low as Ksh.1,000 and there is no limit to the maximum amount that can be contributed. Members are required to contribute a minimum amount as share capital (shs 5,000) which is not refundable and then any extra amounts contributed will be transferred to the member’s deposits. Dividends may be paid however on shares, but interest will be paid to a member based on the deposits held with the SACCO. Members’ deposits will be refunded only upon leaving the SACCO. Deposits are normally contributed through the check off (Payroll).

4. Question: Can Increase or reduce my monthly contributions?

Answer: Yes, by filling in a change in share contribution form and pass it to the office or one of the SACCO officials. The form can also be downloaded from the Website.

5. Question: How do I resign from the SACCO?

Answer: A member can resign from the SACCO in writing addressed to the committee or the Office Accountant/Administrator. Then the office will confirm if there are any amounts due to the member or whether the member owes the SACCO. If a member owes the SACCO (when the loan exceeds the deposit) then the member agrees with the office on how the balance can be paid. If the SACCO owes the member (deposit exceed loan) then the SACCO organizes for the refund. If a resigned member has guaranteed an existing member then the existing member has to find a replacement before the resigned member can be cleared.

6. Question: Can I rejoin the SACCO if I had earlier resigned?

Answer: Yes, but a member may only rejoin after one year. This is to encourage long-term membership. The management Committee and other SACCO members also reserve the right of readmission.

7. Question: If I leave employment can I continue to be a member?

Answer: Yes so long as all the monthly contributions (deposits and also loan repayments where relevant) are made on time.

8. Question: Can I join Mzima Springs and still be a member of another SACCO?

Answer: No, this is prohibited by the Cooperatives Act.

9. Question: What are my rights as a member?

• Attend general meetings, vote and be heard in those meetings,
• Elect the committee, share in the society’s surplus and inspect the books of accounts and apply for a loan subject to the SACCO’s rules,
• Appoint nominees, transfer deposits in the society with the approval of the committee,
• Withdraw from being a member of the SACCO,
• Approve, reject or defer the budget, participate in the amendment of the society’s bylaws,
• Fix the maximum borrowing powers of the society and the honoraria for committee members, if any,
• Request for an inquiry to be conducted on the society by an officer appointed by the Commissioner for co-operative development,
• Demand for a special general meeting after fulfilling the requirements,
• Appeal to the Minister should he not be satisfied with the decision of the Commissioner,
• Enjoy all the services provided by the SACCO.

10. Question: What are my duties as a member of the SACCO?

Answer: Among others the following:

•Attend the members’ education days in order to learn about the SACCO and its activities,
• Be loyal to the SACCO and abide with the societies bylaws,
• Participate in the activities of the co-operative society, such as attending meetings,
• Encourage potential members to join the co-operative society,
• Not be members of more than one society with the same or similar objectives,
• Not have more than one vote, and serve the co-operative society with honesty and dedication when elected into the committee.

1. Question: As a member how many loans am I entitled to and what is the maximum amount?

Answer: The SACCO provides only two types of loans i.e. Normal (development) loan and emergency loan. The emergency loan is up to a maximum amount of sh.250,000 and has to be repaid within 18 months. The emergency loan is taken when a member has emergencies like funerals and medical expense (including school fees). The normal loan is for others. The normal loan is repayable in 5 years (60 months). The maximum limit of a normal loan is currently sh. 3 million. However a member’s loans are limited to three times the deposit or sh.1,950,000  (sh.1.8 million plus sh.150,000) million whichever is lower.

2. Question: What do I do if I require a loan?

Answer: A member can pick the loan application form from the office(2nd floor Student Center) or a SACCO officer or download from the SACCO website. If filled correctly and approved by the Human resource and accounts department it is delivered to the SACCO office or passed on to a SACCO officer.

3. Question: How long do I wait for my loan to be approved?

Answer: An emergency loan is processed immediately and released subject to meeting the relevant conditions. Normal loans require approval of the Management Committee. A normal loan may be approved in the management committee but disbursed subject to availability of funds. Some loans may take long before disbursement because of various reasons but mainly because of many applications.

4. Question: Can I offset a loan with part or all my deposit?

Answer: Not allowed because it is like refunding a member their deposit. A refund of deposit is only done on termination of membership.

5. Question: Can I apply for another loan if am still servicing one?

Answer: For normal loans, you can apply on the condition that you have already paid 75% of the initial loan taken. You can then apply for a new loan such that the SACCO will pay the difference between the loan applied and the previous outstanding balance. For example if a member had taken an initial normal loan of sh. 200,000 and the member remains with sh. 50,000 as unpaid, the member can apply for a new normal loan of say sh. 300,000 and the SACCO will issue a cheque of sh.250, 000 (being the new loan sh.300, 000 less the balance on the previous loan, 000). The member will have to service the new loan of sh.300, 000.

For emergency loans, one cannot apply if they are still servicing one, but the management committee may consider special cases and also the balance of the current emergency being serviced.

6. Question: Can I increase my deposit and apply for a new loan or pay off a loan and apply for another one immediately?

Answer:  Yes. For increases in deposits, the process may take long but for loans application procedure applies, and it may take time to process.

7. Question: How many members can guarantee my loan and who can guarantee?

Answer: Four members can guarantee any type of loan. Any member can also guarantee a loan as long as it is a member of the SACCO. However guaranteeing many members’ loans is discouraged because one is exposed to default risk. One can only guarantee a maximum of 6 members at any given time.

Note: Please on Guarantorship:

  1. It is important to understand that when you guarantee a loan to another member of the SACCO you are responsible for your part and also for the whole of the loan when the member is in default.
  2. It is the responsibility of the members who have guaranteed a member to ensure that the member pays the loan especially if the member leaves employment with an affiliate institution.
  3. The SACCO will normally alert guarantors when a member is leaving and owes the SACCO. The guarantors together with the member have to inform the SACCO on the way forward regarding how payment will be made.
  4. If a member defaults the SACCO will recover the loan from the guarantors’ deposits and the guarantors can seek legal redress and/or the ministry of cooperatives tribunal.