SACCO Share Withdrawal Form (Kenya)
SACCO SHARE WITHDRAWAL FORM
Sacco Societies Act No. 14 of 2008, Section 43 | Co-operative Societies Act Cap. 490
Date of Request: [Request Date]
TO:
The Management Committee
[SACCO Name]
Registration No.: [SACCO Registration Number]
[SACCO Address]
PART A — MEMBER DETAILS
Full Name: [Member Name]
Membership Number: [Membership Number]
National Identity Card No.: [NIC Number]
KRA PIN: [KRA PIN]
Residential Address: [Member Address]
Phone Number: [Member Phone]
PART B — SHARE ACCOUNT DETAILS
Share Account Number: [Share Account Number]
Total Shares Currently Held: [Total Shares Held]
Nominal Par Value per Share: [Par Value Per Share]
Total Share Value: [Total Share Value]
PART C — WITHDRAWAL REQUEST
Type of Withdrawal: [Withdrawal Type]
Number of Shares to Withdraw: [Shares to Withdraw]
Amount Requested (KES): [Withdrawal Amount]
Reason for Withdrawal: [Withdrawal Reason]
Additional Details: [Withdrawal Reason Detail]
I hereby give notice of my intention to withdraw the above-stated shares from [SACCO Name] in accordance with Section 43 of the Sacco Societies Act No. 14 of 2008 and the SACCO's registered by-laws. I acknowledge that the SACCO will process this request subject to the applicable notice period under the by-laws and SASRA guidelines, and subject to any right of set-off for outstanding loans or other obligations owed to the SACCO under Section 44 of the Sacco Societies Act No. 14 of 2008.
PART D — LOAN AND GUARANTORSHIP DECLARATION
Outstanding Loan with the SACCO: [Has Outstanding Loan]
Outstanding Loan Balance (KES): [Outstanding Loan Balance]
Currently Acting as Guarantor: [Is Guarantor]
Guaranteed Member and Loan Reference: [Guarantor Details]
I confirm that the above declarations are accurate and complete. I understand that the SACCO may withhold release of my share proceeds until any outstanding loan balance or guarantorship obligation is resolved.
PART E — PAYMENT INSTRUCTIONS
Preferred Payment Method: [Payment Method]
Bank Name and Branch: [Bank Name]
Bank Account Number: [Bank Account Number]
M-Pesa Number: [M-Pesa Number]
PART F — MEMBER DECLARATION AND SIGNATURE
I, [Member Name], hereby declare that:
(a) The information provided in this form is true, accurate, and complete;
(b) I consent to the SACCO exercising any right of set-off under Section 44 of the Sacco Societies Act No. 14 of 2008 against my share withdrawal proceeds for any amounts I owe the SACCO;
(c) I acknowledge the applicable notice period under the SACCO's by-laws before disbursement of proceeds;
(d) I understand that where this is a full withdrawal, my membership of [SACCO Name] will be terminated upon payment of the net proceeds.
Signed by Member: _________________________ Date: _____________
FOR SACCO USE ONLY
Received by: _________________________ Date: _____________
Verified by: _________________________ Designation: _____________
Net amount payable after set-off (KES): _____________
Expected disbursement date: _____________
Authorised by (Management Committee): _________________________ Date: _____________
Member
________________
Signature
SACCO Authorised Officer
________________
Signature
Witness
________________
Signature
What Is a SACCO Share Withdrawal Form (Kenya)?
A SACCO Share Withdrawal Form in Kenya captures the structured information needed to complete the process it supports.
SACCOs in Kenya are either deposit-taking SACCOs (DT-SACCOs) licensed by SASRA under the Sacco Societies (Deposit-Taking Sacco Business) Regulations 2010, or non-deposit-taking SACCOs regulated under the Co-operative Societies Act Cap. 490 and supervised at county level. The share withdrawal process differs slightly between these two categories: DT-SACCOs are required under SASRA prudential guidelines to maintain a minimum capital ratio, and large-scale share withdrawals may be subject to regulatory scrutiny to prevent destabilisation of the SACCO's capital base.
Shares in a Kenya SACCO are distinct from deposits or savings held in a SACCO savings account. Shares represent ownership interest in the cooperative and appear in the SACCO's capital account. The value of shares is typically fixed at a nominal par value — commonly KES 20 or KES 50 per share — as set by the SACCO's by-laws registered with the Commissioner for Co-operatives under the Co-operative Societies Act Cap. 490. Accumulated share value forms part of the member's lien, which the SACCO may set off against outstanding loans under Section 44 of the Sacco Societies Act No. 14 of 2008 before releasing withdrawal proceeds.
Withdrawal of shares in Kenya SACCOs is not immediate on demand. The Sacco Societies Act No. 14 of 2008 and SASRA guidelines permit the SACCO's management committee or board to impose a notice period — typically 60 to 90 days — before disbursement of share proceeds. This notice period protects the SACCO from sudden liquidity shocks. During the notice period, the SACCO verifies the member's loan obligations, any guarantorship liabilities, and any levies or penalties due under the by-laws.
Upon resignation or expulsion of a member, the SACCO is obligated to repay the member's shares within a reasonable period under Section 45 of the Sacco Societies Act No. 14 of 2008, subject to the right of set-off. Deceased members' shares are handled through the legal representative or next-of-kin under the Law of Succession Act Cap. 160, and the SACCO requires a grant of letters of administration or a grant of probate from the High Court of Kenya before releasing share proceeds to the estate.
The Kenya Revenue Authority (KRA) treats dividends paid on SACCO shares as investment income under the Income Tax Act Cap. 470. However, the return of share capital on withdrawal is not taxable as income — it represents the return of the member's own capital contribution. Interest on deposits held in SACCO accounts is subject to withholding tax at 15% under the Income Tax Act Cap. 470 where the member is an individual.
Forms-legal.com provides a Kenya SACCO Share Withdrawal Form that captures all mandatory fields required by SASRA and standard SACCO by-laws, enabling members to submit a complete and compliant withdrawal request on first submission.
When Do You Need a SACCO Share Withdrawal Form (Kenya)?
A SACCO Share Withdrawal Form in Kenya is required whenever a member of a Kenya SACCO wishes to reduce or fully exit their share holding in the cooperative society. The form is needed in the following circumstances.
Resignation from membership: When a member decides to leave the SACCO entirely, the SACCO Share Withdrawal Form initiates the share buy-back process under Section 43 of the Sacco Societies Act No. 14 of 2008. The SACCO will verify the member's loan balance, guarantorship commitments, and any outstanding obligations before processing the withdrawal.
Partial share reduction: A member may wish to reduce their share contribution — for example, on retirement or change of employment — while remaining a member of the SACCO. Many SACCO by-laws allow partial share withdrawal subject to the member maintaining the minimum share holding required for continued membership as prescribed by the SACCO's by-laws registered under the Co-operative Societies Act Cap. 490.
Member emigration or relocation: Where a member is relocating outside Kenya on a long-term basis and cannot maintain regular contributions, a share withdrawal form is used to liquidate the member's share holding and close the membership account.
Dissolution or merger of the SACCO: Under Section 58 of the Co-operative Societies Act Cap. 490, when a SACCO is wound up, dissolved, or merges with another SACCO under SASRA's supervision, members are required to submit share withdrawal documentation as part of the liquidation or amalgamation process.
Deceased member estate: When a SACCO member dies, the legal representative of the estate uses a share withdrawal form (together with a grant of probate or letters of administration from the High Court of Kenya under the Law of Succession Act Cap. 160) to claim the deceased member's shares.
Exclusion or expulsion: Under SACCO by-laws made under the Sacco Societies Act No. 14 of 2008, a member who is expelled by the management committee receives a share withdrawal form to support the return of their capital contribution after deduction of any amounts owed to the SACCO.
Parties in Kenya should prepare a SACCO Share Withdrawal Form (Kenya) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Central Bank of Kenya Act (Cap. 491), the Central Bank of Kenya (CBK) regulates banking. The Capital Markets Authority (CMA) regulates securities under the Capital Markets Act (Cap. 485A). Section 84 of the Bills of Exchange Act (Cap. 27) governs promissory notes. The Kenya Revenue Authority (KRA) administers tax obligations. The Microfinance Act No. 19 of 2006 regulates microfinance institutions. The Hire Purchase Act (Cap. 507) governs credit sale agreements. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your SACCO Share Withdrawal Form (Kenya)
A Kenya SACCO Share Withdrawal Form must contain the following elements to comply with the Sacco Societies Act No. 14 of 2008, SASRA regulations, and standard SACCO by-laws.
Member Identification: Full name of the member as registered with the SACCO; SACCO membership number; National Identity Card (NIC) number; KRA PIN; and the member's registered address and contact telephone number (including M-Pesa registered line for payment purposes).
SACCO Details: Full name of the SACCO; SACCO registration number issued by the Commissioner for Co-operatives under the Co-operative Societies Act Cap. 490; SASRA licence number (for DT-SACCOs); and the branch or region of the member's account.
Share Account Details: The member's share account number; the total number of shares held as at the date of the withdrawal request; the nominal par value per share in Kenya Shillings (KES); and the total computed share value sought for withdrawal.
Type of Withdrawal: Whether the member is requesting full withdrawal (resignation from membership) or partial withdrawal (reduction of share holding while remaining a member). For partial withdrawals, the number of shares to be withdrawn and the resultant remaining share holding must be stated, confirming compliance with the SACCO's minimum share holding requirement.
Reason for Withdrawal: A brief statement of the reason — resignation, retirement, emigration, financial hardship, or other — to enable the SACCO management committee to assess the request in accordance with SACCO by-laws and SASRA guidelines.
Outstanding Loan and Guarantorship Declaration: A declaration by the member confirming whether any outstanding loans are held with the SACCO, and whether the member is acting as a guarantor for any other member's loan. Under Section 44 of the Sacco Societies Act No. 14 of 2008, the SACCO has a right of set-off against share proceeds where the member has an outstanding loan balance. Guarantors may be required to obtain replacement guarantors before share proceeds are released.
Payment Instructions: The member's preferred payment method — bank transfer (with IBAN/account number and bank branch details), M-Pesa mobile money (with registered phone number and M-Pesa name), or cheque — for receipt of the share withdrawal proceeds after all deductions.
Member Declaration and Signature: A signed declaration by the member confirming the accuracy of the information provided, consent to the SACCO exercising any right of set-off, and acknowledgment of the applicable notice period before disbursement under SACCO by-laws.
Witness / Authorised Officer Countersignature: Many Kenya SACCOs require the share withdrawal form to be countersigned by a SACCO officer (branch manager or committee member) and, in some cases, witnessed by a third party to prevent fraudulent withdrawal requests.
Forms-legal.com's SACCO Share Withdrawal Form for Kenya meets all SASRA documentation requirements and the standard form requirements of registered SACCO by-laws under the Sacco Societies Act No. 14 of 2008, confirming members submit complete and procesable requests on the first submission.
Additional compliance elements for a SACCO Share Withdrawal Form (Kenya) used in Kenya include: Under the Central Bank of Kenya Act (Cap. 491), the Central Bank of Kenya (CBK) regulates banking. The Capital Markets Authority (CMA) regulates securities under the Capital Markets Act (Cap. 485A). Section 84 of the Bills of Exchange Act (Cap. 27) governs promissory notes. The Kenya Revenue Authority (KRA) administers tax obligations. The Microfinance Act No. 19 of 2006 regulates microfinance institutions. The Hire Purchase Act (Cap. 507) governs credit sale agreements. Forms-legal.com provides this template as a starting point for Kenya-compliant documentation.
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title = {SACCO Share Withdrawal Form (Kenya) (Kenya)},
year = {2026},
howpublished = {\url{https://forms-legal.com/kenya/financial/forms/sacco-share-withdrawal-form-kenya}},
note = {Free legal document template}
}Frequently Asked Questions
The processing period for a SACCO share withdrawal in Kenya depends on the SACCO's by-laws and its SASRA-approved operational procedures. Most Kenya SACCOs impose a notice period of between 60 and 90 days from the date of receipt of a valid withdrawal form before disbursing share proceeds. Deposit-taking SACCOs (DT-SACCOs) licensed by SASRA under the Sacco Societies (Deposit-Taking Sacco Business) Regulations 2010 are subject to capital adequacy requirements that may extend the notice period where a large volume of withdrawals would impair the SACCO's capital ratio. During the notice period, the SACCO verifies the member's outstanding loan balance, guarantorship obligations, and any levies payable under the SACCO's by-laws made under the Sacco Societies Act No. 14 of 2008. Members should ensure their share withdrawal form is complete and correctly witnessed to avoid delays caused by incomplete documentation.
A Kenya SACCO can defer or reduce — but generally cannot permanently refuse — a valid share withdrawal request from a resigning member. Under Section 43 and Section 45 of the Sacco Societies Act No. 14 of 2008, the SACCO is obligated to repay a withdrawing member's shares within a reasonable period, subject to the right of set-off for outstanding loans and any amounts owed to the SACCO under the by-laws. A SACCO may temporarily defer payment where the disbursement would breach the minimum capital requirements prescribed by SASRA under the Sacco Societies (Deposit-Taking Sacco Business) Regulations 2010. Where a member is a guarantor for another member's unpaid loan, the SACCO may withhold release of the withdrawing member's shares until the guaranteed loan is repaid or a replacement guarantor is provided. If a SACCO unlawfully refuses to release share proceeds, the member may lodge a complaint with SASRA or with the Commissioner for Co-operatives, or may seek redress before the Co-operative Tribunal established under the Co-operative Societies Act Cap. 490.
In Kenya, SACCO shares and SACCO deposits (savings) are legally distinct instruments. Shares represent the member's ownership stake in the cooperative society and are recorded in the SACCO's share capital account. The nominal par value of shares is fixed by the SACCO's by-laws registered under the Co-operative Societies Act Cap. 490 — commonly KES 20 to KES 50 per share — and shares do not earn interest but may attract annual dividends declared by the SACCO's annual general meeting. Deposits, on the other hand, are savings or fixed deposits held by the SACCO on behalf of the member in a deposit account, earning interest as specified in the SACCO's deposit product terms. Under SASRA prudential guidelines applicable to DT-SACCOs, deposits are liabilities of the SACCO owed to members, while shares are capital. A member wishing to recover deposits files a different withdrawal or account-closure form, not the Share Withdrawal Form covered by Section 43 of the Sacco Societies Act No. 14 of 2008.
The return of share capital proceeds upon withdrawal from a Kenya SACCO is not taxable income under the Income Tax Act Cap. 470 administered by the Kenya Revenue Authority (KRA). A member who contributed KES 100,000 in share capital over their membership period and receives KES 100,000 on withdrawal is receiving a return of their own capital — not income. However, any share dividends previously declared and paid by the SACCO to the member are treated as investment income and are subject to withholding tax at 15% for individual members under Section 7(2) of the Income Tax Act Cap. 470, unless the member is exempt. Additionally, interest earned on SACCO deposit accounts is subject to withholding tax at 15% at source under the Income Tax Act. Members should consult a tax adviser or the KRA iTax portal to confirm their specific tax position, particularly where share proceeds include accumulated undeclared dividends that have been capitalised into the share account.
When a Kenya SACCO member dies, their shares become part of the deceased's estate and are administered under the Law of Succession Act Cap. 160. The SACCO will not release share proceeds to any individual solely on the basis of a claim of being a next-of-kin; the estate's legal representative must produce either a Grant of Probate (where there is a valid will) or Letters of Administration (where there is no will), issued by the High Court of Kenya under the Law of Succession Act Cap. 160. Some Kenya SACCOs permit a nominee designated by the deceased member during their lifetime to receive a limited amount — typically up to KES 100,000 — without a grant of representation, under the SACCO's by-laws, but amounts above the threshold require formal probate documentation. The SACCO may also credit the deceased member's shares to a Group Life Assurance Scheme payout where the SACCO has an active scheme under an insurance policy. The legal representative completes a Share Withdrawal Form together with certified copies of the death certificate and the grant of representation.
Yes. Under Section 44 of the Sacco Societies Act No. 14 of 2008, a Kenya SACCO has a statutory right of set-off — also called a lien — over a withdrawing member's shares for any outstanding loan balance owed to the SACCO. This means the SACCO will deduct the remaining loan principal, accrued interest, and any penalties from the share withdrawal proceeds before releasing the balance to the member. Most SACCO loan products in Kenya are structured so that the loan amount is linked to a multiple of the member's shares — typically up to three times the share value — ensuring that shares provide implicit security. Where the outstanding loan balance exceeds the share value, the SACCO will not release any proceeds and may pursue the member for the deficit through the SACCO's debt recovery process. Members contemplating share withdrawal who have outstanding loans should first obtain a loan statement from the SACCO to calculate the net amount they will receive after set-off.
The primary regulator for deposit-taking SACCOs (DT-SACCOs) in Kenya is the SACCO Societies Regulatory Authority (SASRA), established under Section 5 of the Sacco Societies Act No. 14 of 2008. SASRA licenses, supervises, and enforces compliance among DT-SACCOs, which are SACCOs that take deposits from members and the public. SASRA has the power to revoke a SACCO's licence, impose receivership, or direct a SACCO to suspend share withdrawals where the SACCO's financial position is impaired. Non-deposit-taking SACCOs — those that do not accept deposits from the public — are supervised by the Commissioner for Co-operatives under the Ministry of Co-operatives and MSME Development, pursuant to the Co-operative Societies Act Cap. 490. County governments also play a supervisory role for SACCOs operating within their jurisdiction. Members who have unresolved disputes with a SACCO may approach SASRA's consumer protection desk or the Co-operative Tribunal established under Section 77 of the Co-operative Societies Act Cap. 490.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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