How to Withdraw Membership from a Sacco: A Comprehensive Guide

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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:

  1. Change of Employment: Leaving a job may necessitate withdrawal from an internal Sacco due to loss of common bond and difficulties in maintaining contributions.
  2. Exodus from the Country: Moving abroad or changing citizenship can make it challenging to fulfill sacco membership requirements.
  3. Poor Services: Dissatisfaction with sacco services, including infrastructure limitations and incompetent customer support, may prompt withdrawal.
  4. Sacco Transfer: Transfer to another sacco due to factors like change of employment or dissatisfaction with services.
  5. Financial Distress: Inability to maintain membership due to financial instability caused by job loss or debt.
  6. Lack of Suitable Products: Seeking membership in another sacco offering preferred services or products.

How to Withdraw Membership from a Sacco:

  1. Issue a written notice stating your intent to withdraw within 60-90 days.
  2. Fill out the sacco membership withdrawal form with personal details and membership information.
  3. Clear any outstanding loan balances and ensure that guarantorship obligations are fulfilled.
  4. 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Can Shares be Withdrawn from a Sacco?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 Sacco deposits, however, can be withdrawn after ninety days.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.

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