The Defence Savings and Credit Co-operative Society (DESACCO) was registered under the Cooperative Societies Act on April 10, 2019.
Its membership is a closed bond comprising serving military personnel and veterans.
What began as a humble initiative has steadily grown in membership, savings, and asset base, enabling the SACCO to support the socio-economic needs of its members.
The idea to establish Defence SACCO was conceived by the Kenya Defence Forces (KDF) leadership after identifying a gap in promoting a savings culture and providing affordable, reliable credit facilities for service personnel.
Currently based at Water Works Camp in Hurlingham, the SACCO plans to expand across military establishments nationwide as its membership and assets continue to grow. Membership is open to both serving and retired KDF personnel.
DESACCO aspires to become the preferred financial services provider for its members, enhancing their socio-economic status while upholding cooperative principles and values.
How to Join Defence SACCO (DESACCO)
Membership at Defence SACCO is strictly open to serving and retired personnel of the Kenya Defence Forces (KDF).
Eligibility
- Serving KDF personnel
- Retired KDF personnel
Application Process & Requirements
- Fill out the membership application form.
- Pay the registration fee: A one-time, non-refundable payment of Ksh600.
- Deposit minimum share capital: Ksh20,000 (mandatory for all members).
- Make monthly contributions: A minimum of Ksh3,500 in deposits.
- Additional charges (for Sharia accounts):
- Ksh1,000 monthly account maintenance fee.
- Kshs300 monthly sink fund contribution.
Also Read: Why Select SACCOs Risk Being Shut Down
Loan Options
The following is a list of loan options available to members under the Sacco.
Development Loan
This is an affordable loan designed to help members take the next step in their growth, such as pursuing construction or farming endeavors. It offers up to four times a member’s deposits, repayable over 48 months, at an interest rate of 1.0% per month on a reducing balance. A 1% loan application and processing fee applies.
Personal Loan
The personal loan supports members’ unique financial needs. It is repayable over 36 months, with an interest rate of 1.0% per month on a reducing balance. Members can borrow up to three times their deposits, with a 1% processing fee.
FOSA Personal Loan
This unsecured loan is available to members who have channelled their salaries through DESACCO FOSA for at least three months. It is repayable over a maximum of 36 months at a rate of 12.5% per annum on a reducing balance.
Members must have fully paid the minimum share capital, contributed for at least six months, and maintain monthly contributions of at least KShs 5,000. The maximum loan amount is Ksh 600,000, with 25% of the loan retained as a deposit.
Sharia Loan
This loan provides financing equal to up to twice a member’s deposits. It is repayable within 36 months, with zero interest and no processing fee.
However, members must contribute a minimum of Ksh 5,000 monthly, or Ksh 10,000 for loans above Ksh 450,000 and Ksh 1,000,000, respectively. Borrowers are not eligible for dividends or interest on deposits, and a monthly account maintenance fee of Ksh1,000 applies.
Members must also save consistently for at least 12 months before borrowing, with no share boosting allowed.
Okoa Cash
This is a short-term loan facility of up to Ksh30,000, repayable within two months. Interest is charged upfront, and it can be accessed conveniently through the mobile app or by dialing *515* on USSD.
Salary Advance
The salary advance is repayable within one month and requires an active FOSA account with salary processed for at least one month. Disbursement is instant and automated via the mobile app or USSD *515#. Top-ups are not allowed for this product.
Emergency Loan
This loan is designed to assist members in meeting urgent financial obligations. It is repayable over 12 months, with an interest rate of 1.0% per month on a reducing balance. The maximum amount available is Ksh100,000, with a 1% processing fee.
Also Read: ENEA Sacco: Membership Requirements, Loan Options, Savings And Interest
Savings Plans
The following is a list of savings options available to members under the Sacco.
Fixed Deposit Account
The Fixed Deposit Account enables FOSA account holders to lock in their savings for a specified period and earn competitive interest rates.
The minimum deposit is Ksh20,000, and funds can be fixed for 3, 6, or 12 months. Upon maturity, the contract may be renewed or the funds withdrawn. Interest is paid only on maturity and is forfeited if withdrawals are made before the term ends.
Junior Savings Account
This account is designed for children below 18 years, aiming to foster financial literacy and a savings culture while helping parents plan for their children’s future. The minimum monthly savings is Ksh500. Competitive interest is calculated monthly and paid if no withdrawals are made for at least six months.
Akiba Savings Account
The Akiba Savings Account is a “save-as-you-earn” product tailored for service personnel. It offers competitive interest rates, mobile banking access, and flexible account management. Members are required to make a minimum monthly deposit of Ksh1,000 through check-off or internal standing orders. Withdrawals are restricted to once per quarter.
Veteran Account
The Veteran Account is designed to provide financial cushioning for members during retirement. It allows veterans to access pension advances immediately after retirement, before official pension remittances begin.
Those who subscribe to the pension advance service are assured of regular payments on the same dates as their salary processing dates. Credit facilities under this account attract interest at 1% per month.
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