Are SACCO shares refundable? Here’s everything you need to know

Investing wisely in SACCO shares not only secures your financial future but also empowers you as a member-owner of a Savings and Credit Cooperative Organization (SACCO).
What are SACCO Shares?
SACCO shares represent a form of ownership that every member contributes to the cooperative. When you purchase SACCO shares, you acquire a stake in the organization, entitling you to various rights and benefits as a member-owner. This investment in share capital is pivotal for the sustainability and growth of the SACCO.
Are SACCO shares refundable?
- Non-Refundable and Non-Withdrawable: SACCO shares are non-refundable and cannot be withdrawn even upon exiting the SACCO. However, they can be transferred to another member of the SACCO, ensuring continuity of ownership within the cooperative.
- Cannot be Used as Loan Security: Unlike other forms of collateral, SACCO shares cannot be used as security against loans. They remain tied to your membership status and ownership within the cooperative.
- Minimum Investment Requirement: To become a member-owner, individuals are required to invest a minimum of KES 10,000, which typically translates to 500 shares at a cost of KES 20 per share. This initial investment establishes your stake in the SACCO and signifies your commitment to its cooperative principles.
Benefits of SACCO Shares
Investing in SACCO shares offers several advantages that contribute to both financial security and cooperative participation:
- Ownership Rights: By holding SACCO shares, you gain voting rights and participate in decision-making processes within the cooperative. This democratic structure ensures that members have a say in the SACCO’s governance and strategic direction.
- High Return on Investment: SACCO shares earn attractive dividends, providing members with a high rate of return on their investment. These dividends are distributed annually based on the SACCO’s financial performance, rewarding members for their ownership and participation.
- Loan Eligibility Determination: The amount of SACCO shares you hold can influence your eligibility for loans. SACCOs often use the value of shares as a criterion for determining the maximum loan amount members can access, leveraging your investment to facilitate financial assistance when needed.