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What is Non-Withdrawable Deposit Taking SACCO (NWDT SACCO)?

A non-withdrawable deposit taking SACCO takes member deposits that are not withdrawable on demand, the deposits serving as the basis for borrowing rather than as spendable savings, and does not operate a front office offering withdrawable accounts. SASRA's regulatory mandate has been extended over time to cover specified categories of these societies, so their supervisory position is not the same as an unregulated group.

A real Kenyan example

A workplace-based SACCO that collects monthly contributions by check-off and lends against them, without any counter where members can withdraw cash, operates on this model.

Why it matters

Members frequently assume that because a SACCO holds their money it must be able to give it back on request. In a non-withdrawable model the deposits are structurally committed, and exiting means going through a membership process rather than making a withdrawal.

FAQs

What makes a deposit non-withdrawable?
It is held as the basis of membership and borrowing capacity rather than as a spendable balance. Accessing it generally means reducing or ending your membership position, subject to notice and to any loan or guarantee it secures.
Are these SACCOs regulated?
SASRA's mandate has been extended to cover specified categories of non-deposit-taking and non-withdrawable deposit taking SACCOs. Whether a particular society falls within scope is a question of current law and of the regulator's own published position, so check with SASRA rather than assuming either way.
Can this type of SACCO offer an account I can withdraw from?
Not without being licensed to take withdrawable deposits, which is the deposit-taking category. If a society is offering withdrawable accounts, its licensing status is worth confirming on the regulator's list.

Related terms

Deposit-Taking SACCO (DT SACCO)BOSA (Back Office Service Activity)SASRA (Sacco Societies Regulatory Authority)SACCO (Savings and Credit Co-operative)

See all 72 terms