Withdrawing membership from a Sacco is a significant decision that may be influenced by various factors. Here’s a guide on why and how to withdraw from a Sacco in Kenya:
Reasons for Withdrawal from a Sacco:
- Change of Employment: Leaving a job may necessitate withdrawal from an internal Sacco due to loss of common bond and difficulties in maintaining contributions.
- Exodus from the Country: Moving abroad or changing citizenship can make it challenging to fulfill sacco membership requirements.
- Poor Services: Dissatisfaction with sacco services, including infrastructure limitations and incompetent customer support, may prompt withdrawal.
- Sacco Transfer: Transfer to another sacco due to factors like change of employment or dissatisfaction with services.
- Financial Distress: Inability to maintain membership due to financial instability caused by job loss or debt.
- Lack of Suitable Products: Seeking membership in another sacco offering preferred services or products.
How to Withdraw Membership from a Sacco:
- Issue a written notice stating your intent to withdraw within 60-90 days.
- Fill out the sacco membership withdrawal form with personal details and membership information.
- Clear any outstanding loan balances and ensure that guarantorship obligations are fulfilled.
- Refund of any owed money by the sacco shall be processed within thirty days.
Can Shares be Withdrawn from a Sacco?
No, sacco shares are not withdrawable but can be transferred to another member. Sacco deposits, however, can be withdrawn after ninety days.
Withdrawal from a Sacco is a straightforward process, but it’s essential to adhere to the sacco’s specific withdrawal procedures and requirements.
