Features & Sacco Leadership

Understanding the Benevolent Fund in SACCOs

Future of Cooperatives in Kenya: Requirements for Sacco group account in Kenya: Understanding the Benevolent Fund in SACCOs

Savings and Credit Cooperative Organizations (SACCOs) are renowned for their financial services, but their role extends beyond savings and loans. One significant aspect of their social welfare functions is the Benevolent Fund. This fund provides critical support to members in times of bereavement, ensuring that financial assistance is available during one of life’s most challenging moments.

What Is the Benevolent Fund?

The Benevolent Fund is a welfare fund established by SACCOs to assist members in the event of the death of a member, their spouse, children, or biological parents. It acts as a safety net, offering financial aid to help cover the costs associated with funerals and other immediate expenses. The fund is designed to alleviate the financial burden on the bereaved family, ensuring they can focus on grieving and healing without the added stress of financial strain.

Coverage Details

The Benevolent Fund typically covers the following depending on various SACCOS. This is a sample.

  • Member: Kshs. 100,000.00
  • Spouse: Kshs. 100,000.00
  • Children: Kshs. 50,000.00 per child (up to four children per year)
  • Biological Parents: Kshs. 50,000.00

Members are required to nominate their spouse, children, and biological parents to be covered by the fund. This ensures that the designated beneficiaries receive the intended benefits promptly and without complications.

Nomination Process

To nominate beneficiaries, members need to download and fill out the nominee for last expense form. This form ensures that the SACCO has accurate and up-to-date information about the member’s chosen beneficiaries.

Required Documentation

When claiming benefits from the Benevolent Fund, the following documents are necessary:

  • Copies of ID/Surrender of ID: For the principal member, spouse, and biological parents.
  • Stamped Burial Permit: Proof of burial.
  • Birth Certificate of the Principal Member: To verify identity.
  • Birth Certificate of the Child: To confirm relationship.
  • Marriage Certificate: In the event of the death of a spouse.
  • Death Certificate: In case of the death of the principal member.
  • Police Abstract: In case of accidental death.
  • Bank Details: Including the name of the bank, account number, and bank branch.
  • Proof of Dependency: For children between the ages of 18 and 25 years.

Certification and Submission

All documentation must originate from the unit level and be certified as true copies before being forwarded to the SACCO’s offices. The documents should be accompanied by a forwarding letter signed and stamped by the command element in the unit, and they must bear the seal of the unit. This thorough process ensures the authenticity and accuracy of the information provided, preventing fraud and ensuring that the benefits reach the rightful beneficiaries.

The Role of the Benevolent Fund

The Benevolent Fund is more than just a financial tool; it embodies the spirit of community and mutual support that SACCOs stand for. By providing financial assistance during times of loss, SACCOs help their members cope with grief and unexpected expenses. This fund ensures that members’ families are not left destitute or overwhelmed by financial burdens following a death.

 

Andrew Walyaula
Author: Andrew Walyaula

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

Andrew Walyaula

About Author

Andrew Walyaula is a seasoned multimedia journalist. waliaulaandrew0@gmail.com

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