Kwaela SACCO



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This society shall be called: –

KWAELA Savings And Credit Co-operative Society Limited, herein after referred to in these by-laws as the “society” and its area of operation shall be Taita Taveta County.


The registered office of the society shall be at Charonyi Plaza opposite Rhino petrol station-Voi, and its postal address shall be -: P.O BOX 446 Code 80300 Voi.

Notice of any change of address shall be given to the Commissioner for Co-operatives Development (Hereinafter referred to as the Commissioner) and to all the members of the society through their last known address as per the society’s records.


In these by-laws, unless the context otherwise suggests, words, or phrases shall be defined/

interpreted in accordance with the Co-operative Societies Act No. 12 of 1997, the Co-operative Societies (Amendment) Act 2004 and Co-operative Society Rules 2004, made hereunder; hereinafter referred to as the “the Act” and “the Rules” respectively. In these bylaws, save as otherwise expressly stated:-

General Meeting shall be read as Annual/Special General Meeting.

Managing Committee shall be read as “Management Committee”

  •  Commissioner shall be read as “Commissioner for Co-operative Development and Marketing”“Share” means the amount represented by a member’s portion in the equity of the society as a co-owner

“SACCO” means “Savings and Credit Co-operative Society”

“The Act” means “Co-operative Societies Act”

  •  “The Rules” mean “the Co-operative Societies Rules”
  •  “Tribunal” means the Co-operative Tribunal established under the Act.

Where the masculine is applied in the By laws, it read to include the feminine gender.

“Deposits” means a sum of money on terms under which it shall be repaid with or without interest or premium, and either on demand or at the time or in circumstances agreed by or on behalf of the person making the society to receive it at the risk of the society receiving it.

“Common Bond” means only unifying factors that bring the members together as employment, occupation or profession.

“Supervisory Committee” means an oversight Committee elected at a General Meeting.

“Capital” means the permanent members equity in the form of common stock and includes all disclosed reserves, retained earnings, grants and donations.

“Member in Good Standing” means a member who is up to date on making the required contributions of shares, deposits, loan repayments and or other agreed contributions to the Society and has not in any way acted in a manner which is potentially damaging to the society and has fully complied with the By laws, policies and rules set by the Society.

Any questions concerning interpretation of these by-laws or any matters not provided for herein,

Errors and omissions should be referred to the Commissioner.


The objects for which the society is established are:-

  •  To promote thrift among its members by affording them an opportunity for accumulating their savings; and to create thereby a source of funds from which loans can be made 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 safety and soundness of the members funds through an appropriate insurance scheme or a Risk Management Programme.
  •  To Co-operate with other co-operatives in order to promote members interest and in furtherance of this object, the society may affiliate to other Organizations such as KUSCCO, CAK, CIC, Co-operative Bank of Kenya or any other approved organizations.
  • To ensure progress of its members by so educating them continuously on proper use of credit.
  • The society may venture into any other business deemed beneficial to members subject to their approval.
  • The society may operate a benevolent fund for its members.
  • For the attainment of the above objects, the society may undertake all activities that are permissible under the Act, the Rules and these by-laws.


In order to achieve the objectives for which the society is established the society shall follow the following co-operative values and principles:

Co-operative Values

Co-operatives are based on the values of self-help, mutual responsibility, equality and equity. They practice honesty, openness and social responsibility in all their activities.

Co-operative Principles

  •  Voluntary and Open Membership.

The Society aims at serving its members as well as non-member where applicable

in a prudent and effective manner. As such admission to membership is done on voluntary basis without any form of discrimination to all who can contribute to, and benefit from its activities.

  • Democratic Member Control.

The Society shall be a democratic and participatory organization actively controlled by its members. These entails equal voting rights, on a one member, one vote basis. Administration of the Society’s affairs is conducted and control is exercised in a suitable democratic manner. The same democracy applies in decision-making and policy formulation.

  • Economic Participation By Members

Members contribute jointly to the capital of their Co-operative and share in the results of its operations. The Society may pay a competitive rate of interest on capital and remunerate its employees fairly, according to the standards of the Society. Members may resolve to distribute the surplus on any or all of following purposes:

  • Developing the business of the society.
  • Paying dividends in proportion to their contributions to the Society.
  • Paying of interest on deposits, bonus and honoraria as agreed by the general
  • Encouraging further development of the Co-operative movement.
  • Education, Training and Information.

The Society shall foster reciprocal, continuous education programmes for members, management committee and staff, so they can teach and learn from each other in understanding and carrying out their respective roles. The Society shall also have a responsibility to inform the public about the nature and benefits of the Co-operative movement.

  • Co-operation among Co-operatives.

In order to advance the interest of its members and their communities, the Society shall                interact with other Co-operatives in every practical way to attain universal systems of             operations locally, nationally and internationally.

  • Autonomy and Independence.

The Society shall be an autonomous, mutual-help organization controlled by its members. Any agreement with government and other organization is facilitative and is done freely, on mutually acceptable terms that ensure the autonomy of the Co-operative.

  • Concern for Community in General.

It is from defined communities that Co-operatives thrive. While focusing on members needs, the Society shall strive for the sustainable development of those communities through policies that are respectful of the environment and acceptable to the community


A person of either sex shall be eligible for membership who possesses all of the following qualifications: –

Original members who signed the application for registration

New members subsequently admitted in accordance with these by-laws.


A person of either sex shall be eligible for membership who possesses all of the following qualifications: –

Is within the field of membership consisting of the following

common bond: Employees and Bussiness People of Taita Taveta County

Is not less than eighteen years of age?

Is of good character, and sound mind.

Is a retiree member from the common bond wishing to continue being a member?

Is an employee of the society or a related investment of the society?


Every applicant for membership shall complete an “Application for Membership” form.

This form shall be drawn to show all the information required for the purpose of registration of members.



An applicant shall be admitted into membership on being accepted by a majority vote of the

Management Committee, but shall not qualify for rights and privileges of a member until he

Has paid an entrance fee of Kshs. 500.00 and paid in full for at least 100 shares of Kshs. 50.00

Each. On being admitted, the member shall furnish the society with two recent passport sizes

Photographs and a copy of the National Identity Card and be issued with a copy of the Society’s by-



Upon admission, the Manager / Secretary shall cause the name and relevant particulars of the member to be entered in the register of members.

A membership number shall be assigned to every member for the purpose of identifying his account with the Society.


The Management Committee may refuse membership to any person, giving him / her reason

For refusal in writing, provided, however, that the person whose membership has been refused, if

Otherwise eligible for membership, shall have a right to appeal to the next General Meeting of the

Society. The decision of the General Meeting on the matter shall be final.



On admission, every member shall have a Member’s Personal Account (M.P.A) in which shall be recorded all shares, deposits and loans transactions with the Society.

Every member shall receive a Member’s Statement which shall contain details as to his / her membership and in which shall be recorded his / her shares, deposits and loan transactions with the Society. The latest member’s statement signed by an authorized officer shall constitute a certificate of share holding unless proved otherwise. The Statement of Account shall be sent to every member not less frequently than once every three (3) months.

If such a statement is lost, the Management Committee upon payment of such a fee may authorize issuance of a duplicate as it may decide as fair and reasonable.


The Society shall be using Cash at Society’s Bank account for payment on members’ shares, deposits, loan repayments and any other payments.


  • Every member of the Society shall appoint his / her nominee(s) to whom upon his death, the shares, deposits and other interests in the society shall be transferred.
  • Every appointment of a nominee(s) by a member shall be made in writing and signed by the member in the presence of two or more competent witnesses.
  • Where more than one nominee is appointed by a member, the member shall specify the amount or proportion of shares / deposits to be transferred to each nominee. Provided, however, that where no amount is specified each nominee shall receive an equal share.
  • A member desirous of changing his / her nominee(s) may do so at any time provided that such change or alteration is in writing and signed by the member in the presence of at least two competent witnesses.
  • The particulars of nominee(s) shall be recorded on Form VII set out in the schedule to the Rules and kept in a sealed envelope to be kept in the custody of the Manager or Secretary and whose reference shall be entered in the register of members.


Where not admitted to membership, the nominee shall be paid the value of the deceased

Member’s deposits and other interests less any sums due to the society within 60 days of

Receipt of official notice of death of the member, subject to provision of all required


When a member dies in state, the final benefits will be paid to a validated personal representative.


After paying the nominee(s) the value of the deceased member’s deposits or interest, less sums due by the latter to the society the nominee’s obligations by the society shall be discharged.



A nominee shall not have the option to be admitted to membership unless he makes his application on his own right. On admission to membership of such a nominee, the shares, deposits and interest or dividend due to the deceased member shall be transferred in the name of the nominee who shall also be responsible for repayment of loans and other amounts, if any, due from the deceased member to the society.


Membership in the society shall cease with effect from the date of a member: –

Being expelled from the membership.

Withdrawing all his deposits and transferring all his / her shares to another member.

Becoming certifiably insane

Ceasing to hold qualifications stated in by-law 8(a) to (h) above

Is suspended by the committee and subsequently being expelled by a resolution of a general meeting of the society.

Failing to contribute his deposits and loan repayment for a period of three months without genuine reasons.


The funds of this society shall consist of:-

Entrance fee of ksh 500.00

An unlimited number of shares valued at Kshs. 50 each, and part shares.

Any deposits or loans from members or non-members.

A reserve fund as required by law and such other reserves as may be established, with the approval of the General meeting.

Deposits protection fund.

Any surplus resulting from the operations of the society

Funds obtained from lawful miscellaneous sources, and

Any donations, grants, gifts from other bodies, organisation and individuals.


The nominal value of each share shall be 50.00 and every member shall hold at least 100 shares in the society or more but no member shall hold more than one fifth (1/5) of the  Total shares.

Non members shall hold no shares but may hold deposits.

Any amount may be accepted towards the purchase of deposits provided however, that the management committee may fix a minimum amount that may be paid by a member at any time.

No member shall be permitted to reduce his shareholding and deposits below the Minimum at all.

The management committee shall have the right at any time to require members to give  60 dayswritten notice of intension to withdraw deposits.

No member will be allowed to offset loan balance against deposits.

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