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What is BOSA (Back Office Service Activity)?

BOSA, or Back Office Service Activity, is the original SACCO function: members build up deposits through regular contributions, those deposits determine how much each member can borrow, loans are advanced against them and are commonly guaranteed by other members, and any surplus is distributed to members. BOSA deposits are not a current account and are not designed to be moved in and out at will.

A real Kenyan example

A member contributing monthly to BOSA over four years builds a deposit balance that supports a loan of several times that balance, subject to the SACCO's own multiplier.

Why it matters

Understanding that BOSA money is structural rather than spendable prevents the most common disappointment new members report. Accessing BOSA deposits usually means reducing or ending your membership position, often with notice, rather than making a withdrawal.

FAQs

What does BOSA stand for?
Back Office Service Activity. It is the co-operative savings-and-credit function that every SACCO runs, as distinct from FOSA, the banking-style front counter that only some SACCOs operate.
Can I withdraw my BOSA deposits?
Not in the way you withdraw from a bank account. BOSA deposits underpin your borrowing capacity and any guarantees you have given, so accessing them usually means reducing or ending your membership position, subject to notice and to any outstanding loan. Ask your SACCO for its specific rules before you rely on access.
Do BOSA deposits earn a return?
Many SACCOs pay interest or a rebate on member deposits, decided at the annual general meeting alongside any dividend on share capital. The two are different distributions on different balances, and whether either is paid depends on the year the SACCO has had.
Is a BOSA loan cheaper than a bank loan?
Often, for a member with a solid deposit history, but not as a rule. Compare the total amount repayable over the full term, including fees and any compulsory insurance, rather than the headline rate, and check whether interest is charged on a reducing balance or on the original amount.

Related terms

FOSA (Front Office Service Activity)SACCO (Savings and Credit Co-operative)SACCO Member DepositsLoan Multiplier

See all 72 terms