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23. The funds of the Society shall consist of:-

a. An Entrance fee of shillings 500/- payable at the time of admission, which however may be reviewed by the Annual General Meeting.

b. An undetermined number of shares of the value of KShs.20/-. The minimum qualifying shares shall be 150 shares worth KShs.3,000/-.

c. Regular contributions of minimum KShs.700/- per month, which may be reviewed periodically by a General Meeting.

d. A Statutory Reserve Fund and any other fund established and approved by the General Meeting.

e. Surplus Funds resulting from the operations of the Society.

f. Deposits or loans from members or non-members.

g. Funds obtained from any source like Grants from Non-Governmental Organizations or loans from any financial institution.

h. Funds obtained from miscellaneous sources like:

i. Sale of the By-laws and Policy guidelines of the Society.

ii. Any other penalty imposed in accordance with these by-laws.

iii. Investment returns

24. The funds of the Society shall only be applied to the promotion of the stated objects and purposes of the Society as set forth in these By-laws.


25. The nominal value of each share shall be KShs.20/-, whereby the minimum qualifying shares shall be 150 shares valued at KShs.3,000/-. No member shall hold more than one fifth of the shares of the society in accordance with Section 15 of the Act.

26. The Shareholding of a member who fails to complete the payment of the minimum qualifying shares of KShs.3,000/- within six months of his/her admission to membership may be absorbed as a fine by the society upon authorization by the Management Committee. Before such a fine is levied, a written notice shall be served to the member which shall provide that, unless his/her share balance is increased to at least 150 shares or his / her shareholdings are not withdrawn within 30 days of service of notice, his/her balance shall be forfeited to the Society as a fine.

27. With the approval of the Management Committee, a member may at any time transfer his shares to another member but not to a non-member. Such transfer must be in writing and at nominal value.

28. All transfer of shares must be registered with the Secretary and no transfer shall be valid unless so registered. The Management Committee shall require payment of a fee of KShs.500/= for each such transfer, from the transferee, which may be reviewed from time to time by the Annual General Meeting.



a. The liability of a member shall be limited to the nominal value of the shares held by him unless the General Meeting accepts additional liability in respect of a specified sum on specific terms.

b. The rate of interest on deposits or loans shall be determined by the Annual General Meeting but such rate shall not exceed the prevailing market rates for deposits and loans.

c. In the event of liquidation, where available funds are insufficient to pay the full nominal value of the shares held by the members, the funds shall be distributed on pro rata basis among the shareholders according to the number of shares held by each member.


a. No member shall be allowed to reduce his/her shareholding by part withdrawal of shares; neither shall shareholding be used to offset an outstanding loan balance unless a member is leaving the common bond.

b. Where funds are available, and the member bears no liability to the Society either as a loanee, guarantor, endorser or otherwise, the share refund shall be effected within 60 days of receipt of a written notice of withdrawal. However, where funds are insufficient to effect share refunds within the said 60 days the Committee shall put in writing to the member a time frame within which the refund shall be effected, but such period shall not exceed six months from the date of withdrawal notice.



a. Loans shall be obtained from members and non-members subject to the terms endorsed by the General Meeting and duly approved by the members.

b. For the better securing of any loan accepted by the society under paragraph (a) of this by-law, the society may grant a charge over its assets and over the shares held in financial institutions or buildings owned by the society on behalf of the members in accordance with these by-laws. The authority to grant such a charge shall be reserved to the Annual General Meeting, provided that the charge so granted shall be registered with the Commissioner.


32. The society may invest or deposit its funds only in:-

a. Any established Financial Institution registered in the country

b. Such investments and Securities, which are legal and have high marginal returns to the Society.

c. A capital formation fund, which shall only be applied in projects approved by an Annual General Meeting.

d. Shares and deposits of any other Co-operative organization

e. The stock of any statutory body established in Kenya or in any limited liability Company incorporated in Kenya.

f. Any other purpose approved by a resolution at a General Meeting where a quorum is present.


33. The society may render services on behalf of the members and charge a commission for the services rendered. The rate of commission and other charges shall be decided by the Management Committee and published on the society’s Notice Board, and recorded in the Minutes provided that such rates are confirmed by the General Meeting.


34. The society shall maintain a 20% Reserve as provided for in Section 47 of the Act and Rules. Such funds shall be debited from the net surplus of each financial year. The society shall maintain a reserve account equivalent to 20% of Statutory Reserve Fund and not use it except when granted in writing by the Commissioner.

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