Harambee Sacco: Membership Requirements, Savings, Loans Options And Interest

Harambee Sacco Society is one of Kenya’s largest and most popular savings and credit cooperatives.

Its origins trace back to 1969 when employees of the then Office of the President (OOP) formed a merry-go-round to encourage a culture of savings and provide short-term loans for personal development.

The initiative grew into a fully registered society in 1970 under the name Harambee DT SACCO Society Ltd (Registration No. CS/1916).

Over the years, Harambee Sacco has expanded into a commercially autonomous, democratically controlled, and self-reliant enterprise.

It serves over 80,000 members from diverse backgrounds, including civil servants, corporates, groups, chamas, and community-based organizations.

The Sacco offers a range of services, including savings, loans, and investment opportunities, through a network of five branches, with its headquarters at Harambee Plaza, Haile Selassie Avenue, Nairobi, and additional FOSA branches in Mombasa, Kisumu, Eldoret, Nakuru, and Nanyuki.

Harambee Sacco has an asset base of Ksh38.57 billion, empowering its members to achieve financial security, personal growth, and a dignified standard of living.

How to Join Harambee Sacco

Fill Registration Form

Download the Harambee Sacco Investment Registration form, print it, and fill in all the required details. Once completed, you can either:

• Scan and email the form to [email protected], or
• Send the hard copy to:
  The Chief Executive Officer
  Harambee Investment Co-operative Society
  P.O. Box 47815 – 00100, Nairobi

Open an Account

By completing the membership form, you will receive an SMS notification confirming the activation of your account.

You will then pay a total of Kshs 15,000, which includes a non-refundable registration fee of Ksh5,000 and the purchase of 100 shares at Ksh100 each, totalling Kshs 10,000.

Make Deposits

Once you become a member, you are required to make a monthly contribution of Ksh1,000 into your membership account.

These contributions can be used to reserve or pay off the cost of a project of your choice within Harambee Investment Co-operative Society (HICS).

Loan Options

Bosa Loans

Harambee Sacco offers a range of financial solutions under the Back Office Services Activity (BOSA) Loans program to help members meet their financial needs and aspirations.

Types of Loans:

Development Loan

Ideal for funding investments or purchasing property, this pocket-friendly, all-purpose loan helps members improve or fully fund their projects.

Features:

• Maximum loan amount: 3 times the member’s deposits
• Maximum repayment period: 48 months
• Interest rate: 1% per month on reducing balance
• Loans disbursed daily
• Processing fee: 1% of the loan, capped at Ksh5,000
• Loan TOP-UP: Available after 6 months of repayment at 0% commission
• Shares boost: 50% of member deposits for those able to repay larger loans, but with lower deposits

Also Read: Mwalimu National Sacco: Membership Requirements, Savings, Loan Options And Interest

FOSA Loans

Harambee Sacco has established Front Office Services Activity (FOSA) offices at all country branches to enhance financial service delivery to members.

Even with limited savings, members can increase their borrowing power through the Share Boost Loan Product, ideal for those with sufficient income but lower Sacco deposits.

Shares Boost Advance

This product allows members to automatically boost their loan eligibility based on their deposits.

The Shares Boost Advance allows members to increase their borrowing power by up to 50% of their deposits.

For example, a member with Ksh500,000 in deposits can borrow up to Ksh250,000, while a member with Ksh750,000 in deposits can access up to Ksh4,000,000 instead of Ksh2,000,000 without the boost.

Each member is eligible for only one Shares Boost loan per calendar year, with a maximum amount of Ksh500,000. Any new deposits resulting from the Shares Boost loan qualify for dividend earnings.

A 20% commission is charged on the amount granted, and the loan is recovered upfront from the total loan granted.

Harambee Home Loan (HHL)

Harambee Home Loan (HHL) is an affordable mortgage under the Kenya Mortgage Refinance Scheme, available to all Harambee SACCO members who wish to purchase a single dwelling residential house.

It can include either a standalone or a unit within a block of flats—for owner occupation. The facility is governed by the HHL terms and conditions (T&Cs).

Key Features:

• Loan-to-Value (LTV) Ratio: Up to 90% of the purchase price or open market value (whichever is lower). Members provide the remaining 10%.
• Interest Rate: 8% p.a. for loans under 10 years; 9% p.a. for loans over 10 years, calculated on a reducing balance.
• Maximum Loan Term:
  • Salaried members: Up to 25 years or until retirement age, whichever is shorter
  • Informal sector members: Up to 15 years or until insurable age, whichever is lower
• Loan Amount: Minimum Ksh500,000; Maximum Ksh4,000,000
• Mortgage Protection Policy (MPP): Covers the loan in case of death or permanent total disability
• Domestic Package Insurance (DP): Protects the property against theft and fire, financing rehabilitation up to the insured value
• Collateral: Charge on title deed or lease certificate; minimum residual lease of 40 years (or 20 years at loan completion) required for leasehold properties
• Agricultural/Ancestral Land: Generally not financed; board approval may allow Nairobi metropolitan agricultural land if approved by the land board, and a change of use is obtained
• Processing Fee: 1% of approved loan amount, payable upon acceptance of HHL Letter of Offer
• Mode of Payment: Check-off at pay point or via FOSA account
• Early Repayment: Allowed without extra cost, including full loan redemption

Also Read: Kenya National Police Sacco: Membership Requirements, Savings, Loan Options And Interest

Harambee Shamba Loan

The Shamba Loan is designed to help Harambee SACCO members purchase agricultural land or improve existing farmland.

This loan provides members with a structured and secure way to invest in farmland while leveraging SACCO support.

Key Features:

• Financing: Society finances 80% of the purchase price; the member pays 20% and provides proof of payment to Harambee Investment Co-operative Society Ltd (HICS)
• Maximum Loan: Ksh2,000,000
• Loan Multiplier: Up to 4 times the member’s BOSA deposits
• Security: Guaranteed by the land’s title deed, member deposits, and/or guarantors
• Payment of Loan: Funds paid directly to HICS or agreed vendor
• Agreement: Loan Commitment Form signed by borrower, HICS/vendor, and Harambee SACCO signatories
• Valuation: Conducted by SACCO-appointed valuers where necessary
• Title Deed: Registered in the member’s name; transfer forms signed and kept in SACCO custody until full repayment
• Additional Costs: Member bears valuation, title deed registration, stamp duty, legal fees, and other incidental costs
• No Top-Up: This loan product does not allow additional top-ups
• Repayment: Via check-off, standing order, or direct debit
• Processing Fee: 1% of loan amount, capped at Ksh10,000
• Repayment Period: Maximum 48 months

FOSA Savings – Salary Account

Harambee SACCO’s FOSA Salary Account offers members a convenient way to manage withdrawable savings while accessing various financial services.

This account combines the benefits of savings, salary management, and loan access, providing a flexible and efficient solution for members.

Key Features and Benefits:

• Minimum Balance: Ksh1,000
• Access: Comes with SaccoLink ATM card and M-CASH for withdrawals and payments
• Salary Integration: Members can receive salaries through the account
• Loan Disbursement: All approved loans are credited directly to this account
• Salary Advances: Available to members who receive salaries via the account
• Savings Product: Minimum saving amount Ksh10,000, flexible term of 3–12 months
• Charges: No monthly fees
• Interest: Attractive interest payable as per the account terms