Understanding SACCO member rights: What every member should know

Savings and Credit Cooperative Societies (SACCOs) continue to play a major role in promoting financial inclusion, especially among low and middle-income groups. By pooling resources together, members are able to save, access affordable loans, and benefit from shared prosperity. However, many SACCO members are not fully aware of their rights, which can lead to misunderstandings, exploitation, or limited participation in decision-making.

Understanding your rights as a SACCO member is key to ensuring transparency, accountability, and fair treatment. These rights are safeguarded by the SACCO’s by-laws, the Cooperative Societies Act, and regulatory frameworks such as SASRA for deposit-taking SACCOs.

This article explains the fundamental rights that every SACCO member is entitled to.

1. Table of Contents

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   The Right to Access Information

Every SACCO member has the right to access clear, accurate, and timely information regarding the SACCO’s operations. This includes:

• Financial statements and audited reports
• Loan and savings policies
• Membership rules and obligations
• Election processes and leadership structures

A well-informed member is better positioned to participate in decision-making and safeguard their investments.

2. The Right to Vote and Participate in Decision-Making

SACCOs operate under the principle of democratic control – one member, one vote.
No matter the level of savings or shares held, every member has equal voting rights during:

• Annual General Meetings (AGMs)
• Special meetings
• Leadership elections

Members can also propose motions, question board decisions, and contribute to policy direction.

3. The Right to Elect and Be Elected as a Leader

If a member meets the eligibility criteria set in the by-laws, they have the right to contest leadership positions such as:

• SACCO Chairperson
• Board Member
• Supervisory Committee Member

This ensures that leadership is open, transparent, and accountable to members rather than controlled by a few individuals.

4. The Right to Fair and Equal Treatment

Every member must be treated equally regardless of:

• Social status
• Wealth
• Gender
• Religion
• Ethnicity

This includes equitable access to loans, services, and benefits. Discrimination in lending, dividend distribution, or participation is prohibited.

5. The Right to Dividends and Interest on Savings

Members who hold shares in the SACCO are entitled to dividends declared at the end of each financial year. Similarly, those who save in member deposit accounts earn interest depending on the SACCO’s performance.

Members have a right to know how these rates are calculated and whether they align with legal requirements and audited results.

6. The Right to Access Loans and Other Financial Services

Members have the right to apply for loans based on the SACCO’s approved lending policies. These policies should be:

• Transparent
• Non-exploitative
• Fair to all members

A SACCO cannot deny a loan arbitrarily or enforce hidden charges.

7. The Right to Raise Complaints and Be Heard

If a member is dissatisfied with a decision made by management or leadership, they have the right to:

• File a complaint
• Request an internal review
• Escalate the matter to the County Cooperative Office or SASRA (for regulated SACCOs)

SACCOs are obligated to provide complaint-handling procedures and respond within reasonable timeframes.

8. The Right to Withdraw Membership

A member is free to leave the SACCO, provided they settle any outstanding loans. Upon withdrawal, they are entitled to:

• Reimbursement of their share capital
• Refund of member deposits
• Any other benefits owed, in accordance with the by-laws

The SACCO is required to process withdrawals fairly and transparently.

9. The Right to Transparency and Accountability from Leaders

Members have the right to expect responsible management of SACCO funds. Leaders must:

• Act in the best interest of members
• Avoid conflicts of interest
• Disclose financial information honestly
• Adhere to audit and regulatory standards

If leaders misuse funds, members can demand investigations or seek legal action.

Author: Andrew Walyaula

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