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What is SACCO Share Capital?

SACCO share capital is the capital a member subscribes to become an owner of the co-operative. It is distinct from member deposits: it represents ownership rather than savings, it is generally not withdrawable while you remain a member, and it is the balance on which any dividend is paid. The amount required is set by each SACCO and revised by it.

A real Kenyan example

A member joining a SACCO pays share capital to become an owner, then separately begins monthly deposits. Only the deposits grow with each contribution and determine borrowing capacity.

Why it matters

Confusing share capital with savings is the most common misunderstanding about SACCOs, and it leads members to believe they have access to money they do not have access to. It also explains why a headline dividend percentage does not describe the return on your total money with a SACCO.

FAQs

Can I withdraw my SACCO share capital?
Generally not while you remain a member, because it is your ownership stake rather than a savings balance. Exit terms, including what happens to share capital and how long it takes, vary by SACCO and are much easier to establish before joining.
What is the difference between share capital and deposits?
Share capital is ownership and carries the dividend. Deposits are accumulated contributions that grow month by month and determine how much you can borrow. They are separate balances with separate rules.
Does share capital count towards my loan limit?
That depends on the SACCO and can differ by product. Some count deposits only, some count both. Ask which balances count before planning around a borrowing figure.
How much share capital do I need?
The amount is set by each SACCO and revised by it. Confirm the current requirement with the SACCO directly rather than relying on a figure published elsewhere.

Related terms

SACCO Member DepositsSACCO DividendInterest Rebate (SACCO)BOSA (Back Office Service Activity)

See all 72 terms