Direct transfers between SACCOs are rare; often, the process involves withdrawing shares from the old SACCO and reinvesting in the new one.
Some SACCOs may have waiting periods before withdrawn shares can be reinvested elsewhere.
Taxes or penalties may apply depending on local regulations or SACCO policies.
Transferring shares from one SACCO (Savings and Credit Cooperative Organisation) to another involves several procedural and regulatory steps as follows ;
Understand SACCO Rules
Review the bylaws and membership rules of both the current SACCO (the one you hold shares in) and the target SACCO.
Not all SACCOs allow direct share transfers; some may require withdrawals and reinvestments instead.
Check Eligibility
Ensure you are fully compliant with your current SACCO, including:
- No pending loans or outstanding obligations
- Fulfilled minimum shareholding requirements
Confirm that the new SACCO accepts incoming members and allows share purchase by transfer or cash deposit.
Request Share Withdrawal from Current SACCO
Submit a written application to your current SACCO requesting the withdrawal or transfer of your shares.
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Include:
- Your SACCO membership number
- Number of shares held
- Reason for transfer (optional but recommended for clarity)
The SACCO may require approval from the board or a members’ meeting for withdrawal.
Valuation and Settlement
The current SACCO may have a share valuation process to determine the cash equivalent of your shares.
If transferring in cash:
You will receive payment for the shares.
Some SACCOs may allow direct book transfers to the new SACCO if an agreement is in place.
Apply to Join the New SACCO
Complete the membership application form for the new SACCO.
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Submit required documents, such as:
- Identity card or passport
- Proof of residence or employment (if required)
- Share transfer request form (if available)
Deposit the equivalent value of shares (if withdrawing in cash) or request a direct share transfer if supported.
Documentation
Keep copies of all documents for your records:
- Withdrawal/transfer application from the old SACCO.
- Board or management approval.
- Receipt of cash or proof of share transfer.
- New SACCO membership confirmation and share certificate.
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