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What is Common Bond?

The common bond is the shared characteristic that defines a SACCO's membership: a specific employer, a sector, a profession, a county or community, or another association set out in the society's bylaws. It is a registered feature of the society rather than a discretionary policy, and many Kenyan SACCOs have widened theirs over time or opened additional membership classes.

A real Kenyan example

A SACCO whose common bond originates in one employer may later admit members from related employers, family members, or the general public through a separate membership class with its own terms.

Why it matters

The common bond answers the first question anyone has, which is whether they can join at all, and it explains why the answer is not something counter staff can waive. It is also what makes the lending model work, because a shared employer enables collection by check-off.

FAQs

Can I join a SACCO outside my profession?
That depends on the SACCO's current common bond, which is defined in its bylaws. Many have widened membership over time, sometimes through a separate class with different terms. Ask the SACCO rather than assuming either way.
Why do SACCOs restrict membership?
A shared employer or sector allows deposits and repayments to be collected by check-off from salary, which removes most of the repayment risk and is part of why SACCO credit can be cheaper than alternatives.
Can a SACCO change its common bond?
Bylaws can be amended through the society's own governance process, subject to the requirements of co-operative law. A number of Kenyan SACCOs have done exactly this to broaden membership.

Related terms

SACCO (Savings and Credit Co-operative)Bylaws (Co-operative)Check-OffCo-operative Society

See all 72 terms