Buying shares in a SACCO (Savings and Credit Cooperative Organization) in Kenya involves several key steps. While the exact process may vary slightly between different SACCOs, this general guide will help you understand the common steps involved:
- Choose a SACCO
Start by researching various SACCOs to find one that aligns with your needs and preferences. Consider factors such as membership requirements, dividend rates, interest rates, and the SACCO’s reputation. Look for a SACCO that offers benefits and services that meet your financial goals. - Check Membership Eligibility
Confirm that you meet the eligibility criteria for membership in the SACCO. Most SACCOs have specific requirements, such as being employed in a particular industry or residing in a specific area. Ensure you meet these criteria before proceeding. - Join the SACCO
Complete the membership application form provided by the SACCO. This form typically requires you to provide personal information, proof of identity, and any other required documents. Some SACCOs may also require a non-refundable application fee. - Deposit the Initial Amount
To become a member and buy shares, you will need to deposit an initial amount. This amount varies from one SACCO to another. The deposit is usually made into a designated SACCO account and is a prerequisite for purchasing shares. - Receive Your Membership Number
After your application is approved and your initial deposit is processed, you will be issued a membership number. This number is essential for all transactions and communication with the SACCO. - Buy Shares
Once you are a member, you can express your intention to buy shares. This typically involves filling out a share application form where you specify the number of shares you wish to purchase. Some SACCOs may have minimum and maximum limits on the number of shares you can buy. - Share Allocation
After your payment for the shares is confirmed, the SACCO will allocate the shares to your account. You may receive a share certificate or a statement confirming your ownership. Keep this document safe as it proves your shareholding in the SACCO.
Tips
- Always read and understand the SACCO’s policies, terms, and conditions before making any transactions.
- Keep copies of all documents related to your membership and share ownership. This will be useful for future reference and transactions.
- If you have any questions or need clarification, contact the SACCO directly. They can provide specific details about their procedures and requirements.
Also Read: Benefits Of SACCO Shares
