Leaving a SACCO does not necessarily mean getting back every shilling you contributed. The money shown on your statement may include deposits and share capital, and the two are treated differently when you exit.
That distinction is behind one of the most common disputes between SACCOs and their members. According to SASRA’s 2025 SACCO Supervision Annual Report, claims involving refunds of savings and deposits or share transfers accounted for 425 of the 886 complaints it received last year. It was the largest complaint category, although the number fell from 491 in 2024.
So what can you recover when you leave, and what should you do if you disagree with your SACCO?
Deposits and shares are not the same thing
Deposits are the savings you contribute to your SACCO. When you leave, the amount payable will depend on the SACCO’s rules and any outstanding obligations, including loans or guarantees.
Share capital represents your ownership stake in the SACCO. SASRA says shares are not refundable on withdrawal from membership. The regulations allow a departing member to transfer shares, but finding someone eligible and willing to buy them may be difficult.
This means a member can have a valid complaint about a delayed deposit refund while the SACCO is also correct that it cannot simply refund share capital. The first step is to establish how much of the disputed amount falls into each category.
Why do members struggle to get their money?
SASRA identifies two problems behind some refund complaints: liquidity difficulties at individual SACCOs and administrative delays that prevent members from accessing funds when they leave. The regulator says these delays can damage trust.
Share transfers present a different problem. Although shares may be transferred under the applicable rules, SASRA says there is often no ready market for them. A member who wants to exit may therefore struggle to find a buyer.
Neither problem should be hidden behind a vague answer that a member’s “money is tied up”. Ask the SACCO to identify the amount it considers deposits, the amount it considers shares, and the rule it is applying to each.
What if you disagree with the SACCO?
1. Get the records in writing. Ask for an up-to-date statement showing deposits and share capital separately. Request the SACCO’s bylaws, its withdrawal and share-transfer rules, and a breakdown of any loan balance or guarantee it says affects your claim. Keep copies of your contributions and earlier statements.
2. Make a specific written complaint. State what you dispute: an incorrect share balance, a delayed deposit refund, deductions you do not recognise, or a refusal to process a proposed share transfer. Ask for a written response explaining the decision and the rule behind it.
3. Ask how a transfer can be completed. If the dispute concerns shares, ask who is eligible to receive them, whether the SACCO must approve the transfer, and what documents it requires. A rule against refunding shares does not answer a member’s question about transferring them.
4. Escalate an unresolved complaint. If your SACCO is licensed or authorised by SASRA, the regulator provides a complaint form and online complaints portal. Members can also email a completed complaint form to complaints@sasra.go.ke. Include your statement, the SACCO’s response and other relevant records.
A complaint to the regulator is different from asking a tribunal to decide a contested claim. Under Section 76 of the Co-operative Societies Act, disputes concerning a co-operative’s business between a member or former member and the society can be referred to the Co-operative Tribunal. If the parties remain divided over ownership of shares, the amount owed or the application of the SACCO’s rules, that may be the route for obtaining a binding decision.
What should you check before joining a SACCO?
Ask how much of your contribution goes into deposits and how much buys shares. Then read the exit and share-transfer provisions before paying. A SACCO may describe both amounts as part of your contribution, but they do not give you the same right to withdraw cash when you leave.
The practical lesson from SASRA’s report is simple: know which part of your money is withdrawable, keep records of what you paid, and insist on a written explanation when a SACCO disputes your claim.
