Sacco Investments Shares

Each member is required to buy a minimum 5 shares at Kshs 10,000 each, totalling to Kshs 50,000. This is a mandatory requirement for Sacco membership. The shares are payable within 10 months of joining the Sacco. The 50,000 is the core portion of a member`s equity in the Sacco. It is Non-Refundable (Can only be transferred to an existing member). Members are encouraged to continuously buy more investment shares in the Sacco to facilitate significant investment projects

Share capital is a unit of ownership of the SACCO and members earn dividends on the same annually when declared. The Share Capital is not withdrawable but can be sold or transferred to an existing member upon one’s withdrawal from the SACCO. The minimum share capital is Kshs.50,000

Reasons why a member should have a Share Capital account:

To drive the SACCO business.
To meet the SASRA requirements that is the Institutional Capital.
It’s a long term investment with annual return.

Benefits of Membership- Sacco Shares ownership

Dividends-When the Sacco performs well, a portion of its profits is distributed among its members as dividends. The more shares you own, the bigger your slice, and the sweeter the reward. Think of it as a passive income stream generated by your investment.
Voting rights-Being a shareholder gives you a voice in the Sacco’s decision-making process. You get to vote on important matters like electing board members, approving investments, and even setting loan interest rates.
Preferential loan terms-Owning Sacco shares often translates to better loan terms. You might enjoy lower interest rates, flexible repayment schedules, and even higher loan limits compared to non-shareholders.
Your investment grows-Over time, Saccos can grow and expand, leading to an increase in their share value. This means your initial investment in shares could appreciate, potentially giving you a profitable return on your investment.
Enhanced Financial Literacy-Being a shareholder encourages you to actively engage with the Sacco’s financial health and performance. You’ll receive regular reports, attend member meetings, and gain valuable insights into financial management.
Sense of Community-Sacco membership fosters a sense of community and belonging. You’re not just a customer, you’re a co-owner, part of a larger financial family.