Loniwa Sacco Frequently Asked Questions

  1. What is the official name of our co-operative society?
Our co-operative society is known as Loniwa Savings and Credit Co-operative Society Limited (Ltd).  
  1. Where is the registered office of Loniwa Sacco located?
The registered office of Loniwa Sacco is situated at Petannas Villa, 1st Floor, B21, Pipeline, Embakasi, and the postal address is P.O Box 106380, Nairobi.  
  1. What does “SACCO” stand for in our society’s context?
“SACCO” stands for Savings and Credit Co-operative.  
  1. How are key terms and phrases defined within our by-laws?
The definitions and interpretations of key terms are in accordance with the Co-operative Societies Act Cap 490 Laws of Kenya and the Rules made thereunder.
  1. What are the objectives of Loniwa Sacco?
The society is established to organize and promote the welfare and economic interests of its members. This includes promoting thrift, personal growth, progress through education programs, and cooperation among co-operatives.
  1. What are the co-operative principles that Loniwa Sacco adheres to?
Loniwa Sacco operates based on principles such as voluntary and open membership, democratic member control, economic participation by members, autonomy and independence, education and training, cooperation among co-operatives, and concern for the community.
  1. How can someone qualify for membership in Loniwa Sacco?
To be eligible for membership, a person must reside in Embakasi Subcounty, be at least 18 years old, have good character and sound mind, and pay the required entrance fee currently of 500/- and share capital of 10,000/- within 6 -12 months of joining.
  1. How does one apply for membership in Loniwa Sacco?
Every applicant for membership needs to complete an “application for membership” form, providing necessary information for registration.
  1. What rights do members have in Loniwa Sacco?
Members have the right to attend and participate in general meetings, vote, be elected to organs of the society, access facilities and services, and receive information about the society.
  1. What is the procedure for withdrawing from Loniwa Sacco?
A member can withdraw from the society by giving at least 60 days’ written notice to the committee.
  1. Can you explain the process of suspension and expulsion of members?
The committee can suspend a member for various reasons, and a member may appeal. Expulsion requires notice, inquiry, and a decision by the committee and general meeting. An expelled member can appeal to the tribunal.
  1. What happens to a member’s funds if their membership ceases?
Upon cessation of membership, a person is refunded any dividends or interests due prior to cessation, as well as any other sums held by the society on their behalf after deduction of any sum owed to the society.
  1. Can a member transfer shares to another member?
Yes, with committee approval, a member can transfer shares to another member, but not to a non-member. The transfer must be in writing and at nominal value. The transfer needs to be registered with the society to be valid. A Transfer fee of 200/- is applied to the transferee.
  1. What happens if a member passes away and what happens to a member’s deposits, interest, and dividends upon their death?
The society has provisions for nominees. A member can nominate one or two persons as nominees to inherit their shares, deposits, and other interests in the society upon their death. ¬†After obtaining necessary proof of a member’s death, Loniwa Sacco pays the value of the deceased member’s deposits, interest, and dividends to the nominee(s) designated by the member. If the nominee is admitted to membership, the funds are transferred to their Loniwa Sacco account.  
  1. Can you explain the purpose of the “General Meeting”?
The General Meeting is a gathering of all society members to conduct its business, which can be either an annual or special meeting.  
  1. How can members participate in decision-making and voting?
All members can attend and participate in decision-making at General Meetings, where each member has equal voting rights based on the principle of one member one vote.  
  1. What happens to a member’s funds upon cessation of membership?
When a member’s membership ceases, they are entitled to receive dividends, interests, and any other sums held by the society on their behalf, after deducting any amount owed to the society.  
  1. How are changes to the by-laws made?
Changes to the by-laws can be made through a resolution at a General Meeting where members have the opportunity to discuss and vote on proposed amendments.  
  1. What is the minimum number of shares a member must hold, and is there a maximum limit?
Every member must hold at least 500 shares of Kshs 20 each. However, no member can hold more than one-fifth of the total shares of the society.  
  1. How does Loniwa Sacco promote thrift among its members?
Loniwa Sacco promotes thrift among its members by providing them an opportunity to accumulate savings and deposits, creating a source of funds for providing loans exclusively for provident and productive purposes, at fair and reasonable rates of interest.
  1. How does Loniwa Sacco handle the nomination of nominees/Beneficiaries?
Every member shall nominate one or two persons as nominee(s) to inherit the member’s shares, deposits, and other interests upon their death. The nomination must be attested by two witnesses who are members of the society.  
  1. Can a member belong to more than one Sacco society with similar objectives?
No, a member cannot belong to more than one Sacco society with similar objectives.
  1. What happens when a member fails to remit share contributions and loan repayments for six months?
If a member fails to make payments for six months without valid reasons or leave, their membership may cease.
  1. What is the primary aim of the society’s economic participation principle?
The principle of economic participation means that members contribute equitably to the society’s capital and share in the results of its operations.
  1. How does the society ensure financial transparency with members?
Members are entitled to receive regular statements every month on email and SMS, detailing membership, shares, deposits, and loan transactions with the society.