Withdrawing membership from a Savings and Credit Cooperative Society (Sacco) in Kenya is a lawful process governed by the Co-operative Societies Act (Cap 490) and the Co-operative Societies Rules, 2004.
Members may wish to withdraw due to personal financial changes, relocation, or dissatisfaction with services.
Understanding the legal steps helps avoid disputes and ensures a smooth exit while protecting both the members and Sacco’s financial integrity.
Requirements Before Sacco Withdrawal
Before initiating the withdrawal process, a member must review Sacco’s bylaws and membership policy.
Each of the Saccos operates under laws that stipulate conditions and notice periods for withdrawal.
A member should ensure the following requirements are met before initiating the process:
- All outstanding loans and obligations to the Sacco have been cleared.
- The member is not a guarantor for another member’s active loan.
- A formal written notice of withdrawal is prepared and submitted to the Sacco management.
- The members’ identity documents and membership numbers are provided for verification.
Under Section 14(1) of the Co-operative Societies Act, a member can resign by giving written notice to the management committee.
The Sacco is required to acknowledge receipt and act in accordance with its bylaws.
Step-by-Step Withdrawal Process
To withdraw membership from Saccos in Kenya, you generally need to follow these steps:
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- Write a formal letter to the Sacco Chairman expressing your intention to withdraw your membership and stating the reasons for withdrawal.
- Fill out and submit a Sacco clearance or withdrawal form, which is usually provided by the Sacco office.
- Ensure you have cleared all outstanding loan balances and any other dues with Sacco.
- The Sacco will then process your withdrawal, which includes clearing your shares and refunding your contributions after all liabilities are settled.
- If applicable, you may transfer your share capital to another member.
- Once the processing is complete, you will receive a refund cheque for your contributions.
Once all conditions are met, the Sacco’s management committee will approve the withdrawal and process a refund of the members’ share capital and savings.
The withdrawal process may take between two weeks and 60 calendar days, depending on Sacco’s bylaws and administrative procedures; therefore, it is essential to comply fully with Sacco’s requirements to avoid any delays or complications.
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Refunds are made subject to Sacco’s liquidity and financial position as outlined under Section 27 of the Co-operative Societies Act and Rule 15 of the Co-operative Societies Rules, 2004.
Post Withdrawal
After the withdrawal is approved and funds are refunded, the Sacco issues a clearance certificate or confirmation letter to the former member.
This document serves as official proof that the member has no outstanding obligations and is no longer a member of the society.
Former members are encouraged to retain copies of the withdrawal letter, acknowledgement, and clearance certificate for record-keeping.
In some cases, the Sacco may require a short period before full settlement of the share refund, depending on its financial capacity.
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