SACCO member obligations: What every member must uphold

Savings and Credit Cooperative Societies (SACCOs) thrive on unity, trust, and collective responsibility. While members enjoy a wide range of rights such as accessing loans, receiving dividends, and participating in decision-making, they also have obligations that ensure smooth operations and the sustainability of the institution.

A SACCO is a member-owned institution, meaning its strength and success depend largely on the commitment and discipline of its members. When members understand and fulfill their obligations, the SACCO grows stronger, more stable, and better able to support the financial goals of the community.

This article outlines the key obligations every SACCO member should uphold.

1. Table of Contents

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   The Obligation to Save Regularly

Saving is the foundation of SACCO membership. Members are required to contribute consistently to:

• Member deposits
• Share capital
• Welfare funds (where applicable)

Regular saving:

• Strengthens the SACCO’s lending capacity
• Helps members build financial discipline
• Enhances loan eligibility

Members should ensure their savings are timely and in accordance with the SACCO’s by-laws.

2. The Obligation to Repay Loans Promptly

When a member borrows, they must repay:

• The principal amount
• Interest
• Within the agreed timeframe

Loan repayment is not only a legal responsibility but a collective obligation. Defaulting affects:

• The SACCO’s liquidity
• Other members’ ability to access loans
• The overall sustainability of the institution

Members should borrow responsibly and avoid taking loans beyond their repayment ability.

3. The Obligation to Guarantee Loans Responsibly

Many SACCOs operate on a system where members guarantee each other’s loans. This requires:

• Careful assessment of the borrower’s repayment capacity
• Understanding that guarantors share liability if a borrower defaults

Guaranteeing should be based on trust, financial honesty, and an understanding of the risks involved. Members should avoid guaranteeing loans out of pressure or friendship alone.

4. The Obligation to Participate in Meetings and Elections

Annual General Meetings (AGMs), Special General Meetings, and committee elections are important decision-making platforms. Members are required to:

• Attend meetings
• Vote in elections
• Contribute to discussions
• Review financial reports

Active participation promotes transparency and strengthens democratic governance.

5. The Obligation to Respect and Uphold SACCO By-Laws

SACCOs operate under established by-laws and internal policies. Members are expected to:

• Read and understand these rules
• Follow the guidelines on loans, savings, and governance
• Support changes made through democratic processes

By-laws ensure fairness and consistency in how decisions are made and services are offered.

6. The Obligation to Promote the SACCO’s Interests

Members must act in ways that protect the SACCO’s reputation and financial well-being. This includes:

• Avoiding fraudulent activities
• Reporting misuse of funds or corruption
• Supporting growth through recruitment or advocacy

The collective effort of members enhances trust and long-term sustainability.

7. The Obligation to Maintain Accurate Personal Records

Members must ensure their personal information is updated, including:

• Contact details
• Next-of-kin details
• Identification and financial records

This helps the SACCO communicate effectively and ensures smooth processing of benefits or claims.

8. The Obligation to Treat Staff and Leaders with Respect

Mutual respect is a core cooperative principle. Members must:

• Engage with leaders professionally
• Avoid harassment or intimidation of staff
• Demonstrate courtesy in SACCO forums and meetings

Good conduct builds constructive relationships and strengthens the cooperative spirit.

Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. satrendmagazine@gmail.com