SAVINGS MOBILIZATION POLICY MANUAL

© 2021
Table of Contents
Table of Contents .................................................................................................................. 1
ABBREVIATIONS ............................................................................................................... 3
PREFACE ................................................................................ Error! Bookmark not defined.
1. INTRODUCTION ........................................................................................................ 6
1.1 Purpose ..................................................................................................................... 7
1.2 Legislation ................................................................................................................ 7
1.3 Policy and Procedures Manual Violation ................................................................. 7
1.4 Policy Review .......................................................................................................... 8
1.5 Definitions ................................................................................................................ 8
2 GENERAL SAVINGS POLICY AND PROCEDURES ......................................... 11
2.1 Savings Philosophy ................................................................................................ 11
2.2 Savings Mobilization Strategies ............................................................................. 12
2.2.1 Introduction ..................................................................................................... 12
2.2.2 Protection of Savings ...................................................................................... 15
2.2.3 Strategies and Techniques............................................................................... 15
2.3 Marketing of Savings Products .............................................................................. 16
2.4 Implementation of Marketing Strategies ................................................................ 16
2.5 Financial Protection Disciplines ............................................................................ 17
2.6 Savings Services ..................................................................................................... 18
3 COMPUTATION OF DIVIDENDS AND INTEREST ........................................... 19
3.1 Interest Rates .......................................................................................................... 19
3.1.1 Interest Rate on Savings.................................................................................. 19
4 SAVINGS PROCEDURES AND INTERNAL CONTROLS ................................. 22
4.1 Savings Procedures ................................................................................................ 22
4.2 Savings Internal Controls ....................................................................................... 22
5 OPERATIONAL GUIDELINES............................................................................... 23
5.1 General Operational Guidelines ............................................................................. 23
5.2 Protection Measures ............................................................................................... 24
5.3 Collateral Benefits .................................................................................................. 24
5.4 Commercial Handling of Accounts ........................................................................ 25
5.5 Penalties ................................................................................................................. 25
6 REGULATORY REQUIREMENTS ........................................................................ 27
6.1 Shares, Savings and Deposits ................................................................................. 27
6.1.1 Terms of member shares ................................................................................. 27
6.1.2 Non-withdrawable deposits ............................................................................ 27
6.1.3 Deposits return ................................................................................................ 28
6.1.4 Record keeping ............................................................................................... 28
6.1.5 Savings disclosure requirements ..................................................................... 28
6.1.6 Dormant accounts ........................................................................................... 29
6.2 Operations of the Shares, Savings and Deposit Accounts ..................................... 29
6.2.1 Policy .............................................................................................................. 29
6.2.2 Interest Rates on Savings ................................................................................ 30
6.2.3 Shares Mobilization ........................................................................................ 30
6.2.4 Dividends ........................................................................................................ 30
6.2.5 Flexible Savings Products ............................................................................... 30

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 6.2.6 Treatment of Shares on Loan Processing........................................................ 30
6.2.7 Treatment of Deposits on Loan Repayment ................................................... 31
6.2.8 Withdrawal of Savings .................................................................................... 31
6.2.9 Refund of Savings (Withdrawals) ................................................................... 31
6.10 General guiding principles ..................................................................................... 31
6.11 Individual Accounts ............................................................................................... 32
6.12 Group Accounts...................................................................................................... 32
7. SAVINGS MANAGEMENT ..................................................................................... 34
7.1. BOSA Savings........................................................................................................ 34
7.2. Account Opening.................................................................................................... 34
7.3. Account closure ...................................................................................................... 34
8. SUBSEQUENT DISCLOSURE REQUIREMENTS ............................................... 35
8.1. Periodic Statements ................................................................................................ 35
8.2. Changes in the Account Terms .............................................................................. 35
8.3. Account Maturity ................................................................................................... 35
8.4. Advertising ............................................................................................................. 35
8.5. Record Retention .................................................................................................... 35
9. CONCLUSION AND RECOMMENDATIONS ...................................................... 37
10. BOARD APPROVAL OF POLICY .......................................................................... 38
APPENDICES ..................................................................................................................... 39
SAVINGS PRODUCTS ...................................................................................................... 39
1. Deposits .................................................................................................................. 39
2. Christmas Savings .................................................................................................. 39
3. Braemeg Toto Savings ........................................................................................... 39
4. Housing Fund ......................................................................................................... 40

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ABBREVIATIONS
AGM Annual General Meeting
BOSA Back Office Service Activity
CS Cooperative Society
CR Credit
DR Debit
FC Funds Cost
GAAP Generally Accepted Accounting Principles
I Interest
IC Inflation Costs
KUSCCO Kenya Union of Savings & Credit Co-operatives Ltd
MPA Members Personal Account
MSCA Micro Savings and Credit Activity
NGO Non-Governmental Organization
OC Operating Costs
SACCO Savings and Credit Cooperatives
SC Supervisory Committee

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FORWARD
This Savings Policies and Procedures Manual have been developed as a guide towards providing
a uniform level of understanding in the interpretation and administration of the BRAEMEG
SACCO Society Limited’s Savings Operations. It shall address the Savings issues in the BOSA.
In developing this manual, the Board of Directors considered that most of the procedures
described herein are practiced or are to be practiced by the SACCO in one way or the other.
This manual shall therefore be carefully studied, as it constitutes an integral part of the
expectations of the Marketing Department and set out the details of the various procedures that
shall be followed. This information will also be issued separately to marketing staff members
and will be available to employees on request.
Preparation of the Savings Policy and Procedure Manual is a management function. The Policy
and Procedure Manual includes the statement of policy and detailed procedures for all areas of
the Society operation. Policy and Procedures help an organization to:
a) Save time by preventing people from having to make the same decision many times;
b) Prevent and help resolve disputes as policies and procedures laid down form guidelines
that make it easy to decide what does or does not lie within the guideline;
c) Encourage faith in the organization as members and employees see that they can rely on
the organization to behave consistently hence making them feel secure about their
dealings with the organization; and,
d) Aid continuity as the organization gradually changes in their make-up, for instance, even
if Board of Directors, members and employees leave and are replaced.
The purpose of the BRAEMEG SACCO Savings Policy and Procedures Manual is to provide
guidance in decision- making and taking actions within the Society for various operations and
activities.
The manual is intended to:
a) Establish and implement the objectives of the Society as interpreted by the Board of
Directors; and
b) Govern the operations of the Society. This is on the premise that it is an operational
document that is meant to assist members of the Management teams and the staff in
running the Society Savings operations smoothly.

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Additions, deletions and changes to the policy and procedures manual may be made from time to
time by the Board of Directors and become effective only when adopted by the Board of
Directors’ resolution. This Manual is expected to be reviewed on an annual basis.

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 1. INTRODUCTION
i. Savings and Credit societies meet a need not presently met by other financial institutions
by allowing members to save and obtain loans based on security of their savings, their
incomes, character and guarantee by fellow members.
ii. To fulfill the above objectives, policies are formulated to guide Savings and Credit Co-
operative (SACCO) Societies. BRAEMEG SACCO Savings policies and procedures
have been formulated within the legal framework to help members and officials of
SACCO societies mobilize and utilize savings within the organization.
iii. The general objective of the Savings policy is to:
a) Serve as a guiding model, which the Society shall follow for voluntary and
discretional savings mobilization, within a modern approach and a more
competitive market environment.
b) Facilitate management and attraction of savings: perform more efficiently and offer
better services to members.
c) Improve market share of the Society in the savings market, as a percentage of the
formal financial system in which the Society operates.
iv. BRAEMEG SACCO shall consider the following factors in implementation of a Savings
mobilization programme.
a) A thorough knowledge of the targeted market.
b) A functional physical image with modern concepts.
c) Installations providing express and tangible security.
d) Professional staff with good working standards.
e) Competitive and comprehensive schedule.
f) Adequate technology.
g) Efficient communication systems.
h) Attitude and disposition to attract voluntary savings.
i) To attract financial services in a competitive way according to market needs.
j) Entrepreneurial management of the deposit interest rate.
k) Modern policies for savings mobilization.
l) Financial disciplines.
m) Mechanisms to protect the user’s savings.

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 n) Implementation of a long-term Marketing Program
v. For the Savings to flourish there is need to have a Savings Policy and Procedures to guide
those who are involved in the Savings mobilization process. The Board of Directors,
SACCO Board Committees, SACCO Manager and staff must follow clear cut set of
rules, procedures and policies. These policies/rules include minimum savings, types,
terms and conditions and other relevant information on the Savings Management Process.
The following is the Savings Policy and Procedures, which shall be cited as BRAEMEG
SACCO Savings Policy, and Procedures Manual.
1.1 Purpose

i. The Savings Mobilization Policy and Procedures Manual is intended to provide direction,
guidelines, and provide mechanisms for savings mobilization, and make provisions for
proper and efficient utilization and administration of the BRAEMEG SACCO Savings in
order to ensure that the SACCO interests are adequately protected, to ensure equitable
distribution of funds, encourage liquidity planning and enhance effective communication
and information flow between the Society and its members.
ii. Due to the rapid growth of BRAEMEG SACCO Society and the subsequent increase in
the savings and loan demands, the Board of Directors found it necessary to redefine the
Savings Policy and Procedures to make it more efficient in the provision of services to its
members.
iii. It is expected that, with the increased financial SACCO stability, every member of
BRAEMEG SACCO Society shall prosper. This policy and procedures shall be reviewed
as may become necessary from time to time.

1.2 Legislation

Savings shall be made in accordance with the provisions in the Cooperative Societies
Act, Rules, SACCO Act and Regulations and the SACCO By-Laws.

1.3 Policy and Procedures Manual Violation

Any violation to this Savings Policy and Procedures Manual shall be subject to
disciplinary action as prescribed by the SACCO Board of Directors.

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1.4 Policy Review

The Society’s Board of Directors will be responsible for formulating, reviewing, and
adjusting the savings policy. On an annual basis, the Board will review this policy and
make changes if necessary so that it is reflective of daily operations.
1.5 Definitions

Unless otherwise stated in this Policy and Procedures Manual the following words shall
mean:
a. Board of Directors: Members elected by the Society at the Annual General Meeting
who ultimately will be responsible for the policy making operations of the Society.
b. Cash Reserves: Liquid reserve needed and indispensable, established to manage
external and volatile resources, serves as a protection mechanism to cover unexpected
savings withdrawals from a Society at any time.
c. Sacco Manager: An individual hired by the Board of Directors responsible for the
day-to-day operations of the Society in accordance with the rules and regulations set.
d. Cost of Transactions: All direct and indirect costs involved to serve a savings
transaction from the beginning to the final process, according to the size and volume
of such transaction.
e. Daily Cash Fund: Liquidity fund available for daily operations, timely covering
withdrawals and account payments from user savings. Size shall be similar to a
reasonable and necessary amount, without reaching an unproductive or inactive
handling of resources.
f. Interest: The cost of using or borrowing money.
g. Market Rate of Interest: A rate of interest determined by the financial market forces
of demand and supply and is related to the real cost of funds.
h. Shares: A member contribution to the Society capitalization subject to review by the
Board of Directors and is not withdrawable.
i. Savings: This portion refers to the periodic payments made by members and is not
withdrawable unless one ceases to be a member of the society. Each member shall be
paid an interest based on the amount of savings he has. A member’s savings shall

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 form the basis for granting loan to members in accordance with the by-laws. A
member may save in the Sacco through the following ways:
 Deductions through employer’s payroll.
 Deductions through direct debits.
 Deductions through standing orders.
 Direct cash/cheque deposits
j. Savings Mobilization: Refers to profitable financial operations from captured
savings, which in turn are returned to meet member credit needs.
k. Savings Portfolio: Serves as the main sources of growth and financing of Society
total assets, and reflects the financial structure of the institution and capitalization
resulting from profitable transaction of resources.
l. Savings Marketing: All market oriented efforts, means and strategies, in order to
promote, convince, and persuade directly or indirectly the attraction of savings.
m. Segments of the Savings Market: Demographically there are three segments:
Individuals: adults, members and third parties (> 18 years of age); child-youth (<18
years of age); and institutional, including Corporations, Associations, Foundations,
and Committees.
n. Savings Portfolio Stratification: Quantitative relation between the portfolio and a
series of demographic variables needed to understand the origin, composition, and
behaviour of the savings market. Generally, the following is used: sex, age, ethnic
origin, and education, employment, location and income level (SEL=Socio-Economic
Level), which is the membership demographic database.
o. Shares: This refers to the amount which once paid to the society by a member means
that the member owns a part of the society as a co-owner. This portion is not
withdrawable from the society even if one ceases to be a member. It can only be
transferred to a member of the same society according to the Co-operative Societies
Act. Ownership of shares by members will accord them the following benefits:
 Allow the members to participate and vote in the AGM.
 Each member shall be paid dividends on the surplus made based on the
number of shares he holds.

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p. Systematic or Programmed Savings: Voluntary flow of resources deposited by
individuals in a Society, under a savings contract with pre- established terms and
conditions, which operates through installments agreed upon during a specific period.
q. Interest Rate: Is the market “Price” variable, establishing the economic value of
benefits paid by attracted savings, in terms of profitability. This variable shall be a
dynamic, flexible decision making mechanism, and shall react timely to market
conditions.
r. Voluntary Savings: Flow of resources from people to a Society, at their discretion,
free will and judgment, as a spontaneous response to incentives and benefits from
services provided.

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2 GENERAL SAVINGS POLICY AND PROCEDURES
2.1 Savings Philosophy

i. The purpose of BRAEMEG SACCO is to help members use financial tools to improve
their economic and social wellbeing. Savings is a critical tool - every component is as
important as loans. Therefore, the Society shall consider its members’ savings needs just
as carefully as it considers their borrowing needs.
ii. Savings mobilization is one of the main objectives of BRAEMEG SACCO. It is the
process of gathering amounts from many people into a pool that can be put to work in the
economy through lending. The members, the Society, and the community benefit from
savings.
iii. The member benefits from savings in numerous ways. Saving combines smaller amounts
so that members can make larger purchases than they would otherwise be able to afford.
BRAEMEG SACCO will offer short-term savings in the beginning. As the demand rises
and the Society grows, the Society will offer both medium term and long term savings.
Short and medium term savings help people manage uneven cash flow. Long term
savings help provide security for retirement.
iv. Member savings can reduce the need to borrow, or the cost of borrowing. The loan
interest rates are less on savings secured loans.
v. Savings are liquid, that is, the full value is available almost immediately. This is usually
not true for property or other assets. Savings also generate income as long as that income
is greater than the inflation rate.
vi. BRAEMEG SACCO benefits because savings are the Society’s primary means of
securing funds to make loans. The savings also generate income to pay for operating
expenses, to invest in new services and benefits, and to increase capital.
vii. Savings are essential to a community’s economic development. Societies contribute to
economic development by helping individuals improve their financial positions through
savings and borrowing. As a result, members contribute more to the local economy by
purchasing more. Increased sales mean more income and more employment in the
community. BRAEMEG SACCO shall lend only to its members, so it shall keep funds
working within the membership where the savings originate.

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viii. To make a significant long-term difference, savings must be a habit that is practiced
regularly. This is especially true if members can only set aside a small amount at a time.
To get members to develop this savings habit, BRAEMEG SACCO shall convert non-
savers into savers and convert occasional savers into habitual savers. There are main
elements that affect savings, which include:
a) Cultural attitudes,
b) The members age (older members are usually savers while younger members are
usually borrowers),
c) The present economic situation,
d) The members earning level,
e) Government policies (taxation and interest rate policies),
f) Confidence in the Society,
g) Accessibility of funds.
ix. A number of factors are going to influence the savings products that will be offered by
BRAEMEG SACCO. Board of Directors and Management staff are to ensure that the
services offered by the Society are the ones desired by the members, offered at a
competitive price, competitive with other local financial institutions, and the members
have convenient access to their money.

2.2 Savings Mobilization Strategies

2.2.1 Introduction
The essence of BRAEMEG savings and credit cooperative is the mobilization of the savings,
provision of credit facilities and improvement of the standard of living of the members. In the
by-laws of the society it is clearly indicated that the objective of a Society is to promote thrift
among its members by affording them the opportunity for accumulating their savings and to
create a source of funds from which loans can be made to them exclusively for provident and
productive purposes at fair and reasonable rates of interest thereby enabling them to use and
control money for their mutual benefit.

The SACCO can employ the following strategies to mobilize savings;

1. Organization and Delivery Channels: The closer the SACCO get to its customers the
better the channel for mobilizing a large number of depositors.

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2. Branch Network and Access Points: Savers need convenient and frequent access to
their deposits and provision of technology to support branch connectivity and ease of
access to savers thereby mobilizing a large number of depositors. Strategies for
successful savings mobilization are;
i. Re-engineering of business processes
ii. Model and organization
iii. Developing and implementing good marketing and promotional programmes to
address perception of savers.
3. Saving Products: the SACCO must first convince savers that their deposits will be safe
and well managed .Then design and offer diversified products that will satisfy the
service demand of the members. Members are more focused on safety, convenience and
returns in that order of priority. The SACCO must offer a range of products to satisfy
the varying demand of savers. There must be a trade–off between liquidity (access) and
returns(consumption).A continuum of saving product can be developed, ranging from
accounts which offers complete liquidity to those that offer high returns. Low-income
earners and small savers have exhibited willingness to sacrifice returns in exchange for
complete access to their funds, whereas larger and wealthier savers generally prefer to
sacrifice liquidity in exchange for higher returns.
4. Setting Interest Rates: interest rates should be competitive with market rates, cost-based
and positive in real terms above inflation. The board has the authority to increase or
decrease the rate offered on savings to respond to market trends and remain competitive.
The SACCO should offer high interest rates on accounts with higher balances and lower
interest rates on account with lower balances to encourage savers to increase their depo
sits.
For fixed term product, interest rate should increase with the term to compensate
members for sacrificing liquidity for a longer period. Trustworthiness and client
confidence are critical to the continued existence of a saving institution. When several
competitors can project safety and soundness members will make their choices based on
services and product offered. They will place their savings in the institution that best
meet their saving needs.

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5. Product Development/Rebranding: BRAEMEG should strive to have solid brand
(reputation) and must distinguish its models (services) and options (products) to
differentiate themselves from competitors. The SACCO must develop new products
when existing products does not meet member demand (rebrand) the first step in product
development is determining if the SACCO is meeting clients demand. Various sources of
information can be used to evaluate products including; clients complaints, staff
observation, market research, competitors activities and natural financial market
behaviour.
6. Formulation of a marketing plan: marketing is a critical element in launching a saving
mobilization programme. Saving mobilization depends on marketing; savers can only
deposit their funds if they are aware of the services available to them. The SACCO
should use a combination of sale media advertising, direct marketing and promotion to
attract savers which will help in the identification and attraction of savers, improve
competitiveness of service and to build up the public image of institution. Marketing
savings profile the clients’ use of financial services and compares the competitive
characteristics of service: prices, terms, minimum balances, and convenience waiting
periods, service varieties and sophistication of products.
The SACCO should invest in advertisement and promotional activities to attract
members. The methods used can vary as follows; radio and television announcement,
posters, brochures and even newspaper.
Key savings mobilization strategies include;
1) Low minimum balance requirement.
2) Increased interest rate.
3) High quality client services and products.
4) Good promotional programmes to address perception of savers.

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2.2.2 Protection of Savings
i. In order that the process of savings and mobilization may take place, BRAEMEG
SACCO will have to offer the absolute safety of their savings deposited by the members.
The members will demand two protections for the value of their savings:-
a) Protecting the real value of their savings: This means that BRAEMEG SACCO
has to ensure the purchasing power of the money received from the members to
today will be greater or at least the same when it is returned to the members in
future. The key to protecting the real value of savings is the Society’s earnings.
b) Protecting the nominal value of the savings: BRAEMEG SACCO has to be in
adequate position to return 100% of members’ savings any time without any loss of
any kind. This means that the value for Society realizable assets have to be equal or
greater than the value of demandable savings.
ii. The above two concerns are of vital importance if we are going to attract sufficient
savings to play an important role in economic life of the members.
2.2.3 Strategies and Techniques
i. To successfully mobilize savings the following strategies and techniques must be applied:
a) On market interest rates: The Society will have to pay at least the same rates paid
by their competitors on savings in accordance with the market forces.
b) Professional image: The Board of Directors, staff and facilities must present an
image that reinforces member’s confidence in the Society.
c) Diversification of Products and Services: The Society shall offer services very
familiar with those offered by competitors. By so doing members will be able to
satisfy all their savings needs in the Society and not deposit their savings in
different institutions.
d) Separating the savings service from the lending service: The Society shall not
make members sacrifice the real value of their savings to obtain what is supposedly
said to be cheap loans. Both services must benefit the members.
e) Obtaining savings only from the members: This reinforces the cooperative
identity. The members shall have share accounts, which bestow ownership, rights
and obligation of the member owners. Thus, the cooperatives principle of serving
members only is maintained.

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 f) Continuously managing large savings accounts: Big accounts in any financial
business are volatile in that they can easily be withdrawn to obtain increased
interest in other financial institutions. These precautions shall be undertaken by re-
investing these savings facilities in safe and high yielding returns to be able to give
adequate returns to savers. Another way is matching the investment maturities.
g) Continuous Awareness creation: The members and potential members must
continuously access education on the various products and services that the
Societies offer and the opportunities and advantages available for members to
patronize and benefit from in accordance with their level of business transactions.
Education is an important awareness and marketing tool that can be used to
popularize new products and services.

2.3 Marketing of Savings Products

i. There are many ways to market savings products as addressed in the Society Strategic
Plan and Business Plan. Management and the officials are to promote BRAEMEG
SACCO savings through:
a) Personal contacts with the members through the cross selling of products during their
visits to the Society, at financial counseling sessions or workshops.
b) Printed materials are a good way to reach a large number of people. It is important that
when this type of marketing is used that it is “targeted” towards the individuals the
Society is trying to reach to be cost effective.
c) Electronic media reaches a large group of people; however it is more expensive than
printed material.
d) Awards and incentives offer the members an extra benefit for savings. These shall be
used for a limited time in order to be special to the members.
e) Updates on the Society’s website.

2.4 Implementation of Marketing Strategies

i. To mobilize savings, it is important to apply aggressive marketing efforts to change the

status of each Society in their market.

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 a) Market development: Make SACCOs known to the public, advertise their
services, influence the market, sell their image, recruit new membership, facilitate
access to services and disseminate the SACCO concept.
b) Market penetration: Intensify use of services to attract savings growth in terms of
number of accounts, volume of savings, per capita average savings and
membership.
c) Market expansion: Orient savings mobilization toward other geographical
markets, by opening new services in strategic areas of growth.

2.5 Financial Protection Disciplines

i. Savings mobilization requires the implementation, previous or parallel, of a series of

financial disciplines, necessary to protect members’ savings, to preserve a sound
institutional image as a financial intermediary and, to establish market trust on savings
management.
a) Liquidity Reserve: Savings Management require a reserve percentage calculated
on all savings portfolios deposited in other financial institutions, as yielding liquid
instruments, readily available to cover unexpected withdrawals from savings. The
cash reserve shall be between 10 to 15% of a deposit portfolio.
b) Capitalization: Savings mobilization, when done productively, shall yield a
reasonable growth and income from a loan balanced portfolio growth, this yield
builds the institutional capital of the Society, through capitalization of surplus,
setting the minimal relation of institutional capital at 10% in relation to the Total
Assets.
c) Obligatory Shares (Risk Capital): Equity ownership or obligatory shares are
required to obtain membership status and the ownership right, non-withdrawable,
being of a minimum and reasonable amount, to allow easy access to Society
membership and services.
d) Delinquency: Shall be reduced to the minimum, so that deposits finance a sound
portfolio with maximum yield. Otherwise, the need to create provision losses will
reduce profitability and the capitalization level. Delinquency shall not exceed 5% of
the loan portfolio volume.

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 e) Charge off of loans:
Loans with delinquent balances for more than 12 months are written off. Members’
savings shall be applied before using provision for loan losses.
f) Provisions for Loan Losses: Creation for loan losses is the first line protection
from risk of loss in the loan portfolio. The annual statement of earnings current
expense called “loan loss provisions,” before declaring the surplus of the fiscal year
and knowledge loan delinquent more than 12 months are 100% provisions for loan
loss
g) Non-Productive Assets: The savings portfolio shall only finance productive assets.
Liabilities with a loss shall not finance assets, which do not generate income.
h) Idle Liquidity: Daily management of non-earning cash operational requirements, is
reduced to provide strictly that necessary to meet withdrawals and grant loans.
i) Financial Structure: The savings portfolio shall be the main source for total assets
growths of self- financing.
j) Financial Margin: The gross margin product of financial intermediation of savings
shall be sufficient to cover operation expenses, provisions for loan losses and
contribution to capital of the Society.
k) Terms Matching: Short-term savings funds shall be invested in short-term assets.
2.6 Savings Services

i. With a view to enhancing savings, the structural factors to be considered are:

a) Market demographic information.
b) Services currently provided.
c) Financial needs of interest market niche.
d) Relation or links to market niches served.
e) Installations available to offer services.
f) Market testing before implementation.
g) Marketing services through merchant’s trademark.
h) Permanent improvements or adjustments to market requirements.
i) Competitive advantages.
j) Diversification and differentiation of attracted services.

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3 COMPUTATION OF DIVIDENDS AND INTEREST
3.1 Interest Rates

i. When determining the interest rates to be paid on all savings accounts, the Board of
Directors and members of Management staff need to take into consideration:
a) What does it cost the Society to offer that product?
b) What are other financial institutions, that the Society competes with directly, paying on
each type of savings account offered?
c) The current inflation rate.
d) Member behavior. Do the members have the funds in the Society because the dividend
rate is the highest in the area? How loyal are the members? If savings interest rates are
less than anticipated will they keep their deposits at the Society or will they take their
money elsewhere?
e) Are there any types of Savings that the officials think would improve the financial
soundness of the Society? If so, often special promotions, increased marketing efforts,
and attractive rates are offered.
ii. On a monthly basis, management should contact the other institutions to determine their
rates on their various products. Management should present this information to the Board
at the monthly meeting so they can approve any changes needed to remain competitive.
Interest rates paid on Savings should always be higher than inflation so that the members’
savings accounts do not lose value while on deposit at the Society.
3.1.1 Interest Rate on Savings
i. The Society shall take into account the following elements in Interest rate management:
a) Financial market behavior.
b) Current inflation rate.
c) Real resulting deposit rate (positive or negative)
d) Transaction costs on savings.
e) Savings mobilization volume.
f) Terms offered to the market.
g) Discrimination according to portfolio levels.
h) Average rate on Savings weighted on portfolio.
i) Business methodology to estimate rate on deposit.

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ii. Specific Policies:
a) The interest rate shall be competitive within the market environment where the Society
operates.
b) The interest rate shall be reviewed periodically, according to competitive patterns and
shall be adjusted in a timely manner to market.
c) The interest rate, calculation, capitalization term and payment conditions are differently
applied according to the service or the benefits the Society would like to sell as an added
value to a particular account.
d) If the financial market allows it, rate on deposit shall be higher than the inflation rate, in
order to preserve the members’ cash value through real positive interest rates.
e) Nominal interest rates shall be differentiated according to saving amount levels,
regardless of the different modalities to capture savings.
f) Minimum saving amounts shall be established to open an account.
g) Real interest rates shall be marketed by saving ranges, in order to show the competitive
advantages of Society’s
h) The net interest rate shall be sold as a competitive advantage, while keeping similarities
to other financial institutions.
i) A negotiated interest rate can be offered within the market selective niches with a larger
savings capacity, where people maximize the yield for their savings.
j) The interest capitalization period, in different saving modalities, if applicable, could be
daily, monthly or quarterly.
k) Interest calculation on savings account shall be based, if applicable, on a daily balance or
on a monthly average balance, i.e., on a more competitive and impartial basis to
recognize member’s earnings.
l) To calculate interest, the 365 day calendar shall be used, and the corresponding monthly
calendar. Upon settling a savings account, interests shall be counted until the previous
day.
m)Interest rates on a fixed term savings account shall serve as the basis for fixing active
rates on loans, if they were guaranteed with a term certificate as collateral.
n) Interest payment on a fixed term savings account can be previously agreed, monthly, or at
maturity, according to the terms agreed at the time of capturing the resources.

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o) Interest rates in programmed or simultaneous savings accounts shall be higher than “X”
percentage points, over payable rates on regular savings.
p) Interest rates on lottery savings accounts shall be less than “X” percentage points, relative
to the payable rate on regular savings.
q) Interest rates on savings accounts geared to the children-youth population, shall be lower
than those of regular savings account, according to the lower ranges with higher
transaction costs.
r) Interest rates or earnings on shares as a dividend shall be higher than the earnings on
fixed term savings accounts and higher than inflation, in order to offer members a real
positive rate.

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4 SAVINGS PROCEDURES AND INTERNAL CONTROLS
4.1 Savings Procedures

i. Prior to opening any savings accounts, the individual requesting the account must be a
member of BRAEMEG SACCO. Management is to determine if the individual is eligible
for membership according to the Society’s Policies and Bylaws.
ii. The member may open a savings account. At this point the member will receive an
account number. Input into the computer system all of the information to open an account
or establish a ledger card if a manual system is being used. The member may have more
than one regular savings account.
iii. Savings will be accepted to any account, as long as the member submits an official
deposit form.
4.2 Savings Internal Controls

i. All withdrawal /deposit vouchers must contain teller identification.

ii. Employee and official accounts and if desired their family member’s accounts are to be
reviewed for unusual or abnormal activity on a quarterly basis by the supervisory
committee.
iii. All members should be notified immediately in writing if there are any deposit errors.
iv. All change of address requests must be in writing and signed by the member.
v. Any account in which there has been no activity for more than 12 months (dividend
postings are not considered activity) shall be considered dormant.
vi. The dormant accounts should be segregated from the active accounts.
vii. Any transaction on a dormant account must be initialed by an employee at the point of
origin to indicate approval.
viii. When an account is transferred from dormant to active status the approval of the manager
is required.
ix. When an account is closed the signature card is to be promptly pulled from the active
account file and placed in a closed account file.
x. A list of closed accounts including the account number, member name, and reason for
closing shall be provided to the Board at each monthly meeting.

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 5 OPERATIONAL GUIDELINES
5.1 General Operational Guidelines

i. Any individual or corporation, classified as third party, potential members, members and
(in the case of minors) child-juvenile applicants could become users of savings services
offered by the Society, except in cases with express limitations from the local legal
authorities. The group of savers will be grouped under the users’ category.
ii. Notes written by the Society in the user’s statement will verify deposits on a savings
account.
iii. User has the right to close a savings account at any time, subject to fee penalties on interest
rates, according to the terms agreed upon.
iv. Savings accounts in-active during long period of time will not be interrupted by routine
interest installments made by the Society.
v. Interests could be changed and also reduced if required by market conditions, without any
previous public communication from the Society.
vi. A user trying to withdraw funds from an account without being the holder of that account,
and without written authorization to do so, will be denied the withdrawal. The Society will
notify the holder of the account, and the Society will not be responsible for that action.
vii. In case of death of the account holder, savings shall be transferred to the legally identified
beneficiaries, including all the benefits related to insurance protection.
viii. A user is required to present identification documentation, when demanded by the Society,
any time that a service is provided, as proof of account ownership.
ix. Replacement of certificate of deposits, due to loss, destruction or theft, will be charged to
the user. The new document will show as the account initial record the balance kept by the
Society, if the affected user has no other convincing evidence.
x. Savings will be accepted to any account, as long as the user submits an official deposit
form, at which time the account will be updated. Users will be responsible for any case of
error or neglect, without any liability to the Society.
xi. Rejected cheques received as deposits will be debited to the savings account, and will bear
the same date of the original deposit. The Society will not be responsible for those interests,
except in situations based on daily balance.

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xii. In case of fixed term savings or investment accounts, the Society shall issue a Title or
Certificate, as a guarantee of the amount deposited and as an indication of truthful
transaction with the user.
xiii. Custody of all documents shall be done according to the protection measures and internal
control applied by the Society.
5.2 Protection Measures

i. Cash reserve shall be expressed as a percentage of total savings portfolio.

ii. Cash payment on saving withdrawals up to Kshs.1, 000/- and payment by cheque, when
withdrawal is higher than that amount.
iii. Liquid management of quick cash assets, if in a given period the saving market is
irregular, in terms of withdrawals.
iv. Trustfulness in saving accounts management, disclosing them only by saver’s written
authorization or by written order from the appropriate authorities.
v. Institutional insurance paid by the Society, which protects member’s savings up to a
specific amount, considered as a general advantage to all savers.
5.3 Collateral Benefits
i. Shall be offered in a differentiated way, according to the type of services and to the
implied amount of savings, to encourage those individuals with greater savings capacity:
a. Institutional protection insurance paid by the Society on members’ savings.
b. Additional protection insurance paid by the Society, which recognizes as benefit
from 100% to 200% on members savings balance, depending whether member’s
death was natural or accidental.
c. Direct debit to savings accounts, due to liquidation of collateral services or
collection payment by third parties, made by members.

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5.4 Commercial Handling of Accounts

i. Different savings accounts or services provided by Society’s can be marketed under

business or trademarks, to create a more tangible, modern and differentiated concept, and
to encourage different savings styles from individuals.
ii. SACCOs change the style for marketing their traditional regular and term savings
services, considering that a person responds better to a commercial concept consistent
with his/her scale of values.
iii. Regular savings and term savings shall be conceptualized as service categories, within
which it will be possible to develop different accounts or services to attract capital, under
a perspective of diversification.
iv. Things to Consider about a Trademark:
a) Shall be different from those commercial brands already in the market.
b) Easy to pronounce, easy to remember, easy sell and to place in the market.
c) Shall express a concept or sell a tangible or perceptible product.
d) Name shall relate to targeted market or niche.
e) Launching of the name is a long-term investment.
f) Brand name susceptible to re-launching, modifying current services and providing
a different and new value.

5.5 Penalties
i. Charges for return of checks received as deposits shall be equal to the amount charged by
the receiving bank or as may be determined by the BOD from time to time.
ii. Eliminate inactive accounts with marginal savings, which have exceeded five years. The
balances shall be transferred to the undistributed reserve account of the SACCO.
iii. Penalties on interest rates of scheduled savings accounts and fixed term deposits
presented by members prior to their maturity; the penalties shall be applied according to
the conditions of each deposit.
iv. The SACCO is entitled to cancel savings accounts, which have been handled in a
dubious manner, outside the law or in an irregular way.
v. Use part of the profits from the share certificates in paying off delinquent loans, when the
borrower is a member instead of capitalizing the profits.

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vi. Purging of inactive accounts with marginal savings, which exceed the established period
of time; balance will be transferred to the Society Non Distributable Reserves.
vii. Penalties on interest rates of programmed savings accounts and fixed term deposits,
withdrawable by members prior to the agreed time, normal account charges would be
applied to the actual term of the deposit.

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6 REGULATORY REQUIREMENTS
6.1 Shares, Savings and Deposits

BRAEMEG SACCO Society shall comply with the provisions of the Cooperative Societies Act,
the Rules and Regulations and Society By-laws in respect to Shares, Savings and Deposits. This
is in respect to the following provisions:

6.1.1 Terms of member shares

i. The Society shall prescribe a minimum number of shares at a par value for which an
individual shall subscribe to become a member. No member shall pledge his shares as
collateral or security for a loan granted by the Society.
ii. A member may transfer his shares to other members on leaving membership of a Society,
provided no Society shall refund shares.
iii. Shares may earn dividends paid from net surplus after required transfers to reserves at the
end of a financial year in accordance with the dividend policy of a Society.

6.1.2 Non-withdrawable deposits

i. Non-withdraw-able deposit accounts shall be operated in accordance with the Society’s

by-laws. The amount accumulated in the account may be used as collateral against
borrowings and shall be refunded only when a member withdraws from membership
provided the member has fully repaid all his debts and is free from guarantee.
ii. Where a Society operates non-withdraw-able deposit accounts, every member shall
contribute on a monthly basis, or at such fixed periods and in such amounts as determined
by the Society.
iii. A member may be refunded the amount saved in his non-withdrawable deposit account
within 60 days after giving a written notification.
iv. Non-withdraw-able deposits shall attract interest at a rate to be determined by the Society
as dictated by external market forces or internal funding needs.

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6.1.3 Deposits return
The SACCO society shall submit to the Authority a statement of deposit return on its non-
withdraw-able deposits at the end of every month to be received on or before the 15th day of
the following month as set out in Form 3 of the Regulations.

6.1.4 Record keeping

The Society shall maintain an account for each of its members through which Shares and deposit
transactions with the member shall be recorded. Term deposit accounts shall be evidenced by a
receipt or statement that clearly states the member’s name, the certificate and account number,
the date of the deposit, the amount of the deposit, the term of the deposit, the interest rate, and
dates of interest payments and penalties for early withdrawal.

6.1.5 Savings disclosure requirements

i. The Society shall disclose to its members and potential members, the terms and conditions
for operating each account and legal obligations attendant thereto. The advertisement in
respect of terms and obligations attendant to an account offered by the Society shall not be
misleading or inaccurate and shall not misrepresent the Society’s account contract. The
advertisement shall state the following information, the extent applicable, clearly and
conspicuously:
a) The minimum amount required for opening an account and the minimum balance to
maintain will be determined by the BOD from time to time on the basis of the product
offered.
b) The minimum interest-bearing balance – Kshs. 100,000 or as may be determined by the
BOD from time to time.
c) The type of interest rate and fees applicable.
d) The penalty for early withdrawal will be charged at 5%.
e) The maturity of a term account. (Fixed deposit). Minimum period – 3 months.
ii. For a joint account, disclosures made to any one of the members shall be sufficient.

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6.1.6 Dormant accounts
i. A Society shall deem an account as dormant if no transactions have been made therein
for a period of one year. The Society must maintain a separate accounting record of all
such accounts.
ii. Savings, deposits and other sums due to a member may be deemed abandoned if the
member or his nominee has not contacted the Society in person or in writing within a
period of five years, or has otherwise not indicated an interest in the funds.
iii. Where funds have been deemed abandoned, the board of a Society shall give a 90 days’
notice to the member or nominee at the last known address of its intention to close the
account and transfer the abandoned monies to the public trustee.
iv. Where a nominee is reached, the Board of Directors may transfer the abandoned funds to
him/her.
v. Where the member or nominee cannot be traced, the board of directors with approval of
the Annual Delegates meeting may transfer the funds to the public trustee. The member
or other interested party shall be informed by way of notice of the above action taken
using the last known address.

6.2 Operations of the Shares, Savings and Deposit Accounts

6.2.1 Policy
i. To mobilize savings, the Society shall apply aggressive marketing efforts.
ii. Appropriate incentives shall be applied to promote savings growth based on set goals.
iii. Members shall be required to consistently ensure minimum monthly contribution as set in
the By-Laws.
The Board shall therefore appoint a marketing champion who will spearhead the growth of
savings through aggressive marketing as well as creative incentives for members to save. These
incentives include;
 Attractive interest rates payments on savings held by members.
 Rewards for savers with distinction e.g. best improved, highest saver etc.
 Attractive loan packages for high savers e.g lower interest rate loan for loans amounts
above a particular figure.

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6.2.2 Interest Rates on Savings
i. From time to time the Board of Directors shall determine the interest rate applicable to
savings and the method of calculating interest earned. In determining these, the Board of
Directors shall consider the following elements:
a) Financial market behavior.
b) Current inflation rate.
c) Transaction costs on savings.
d) Savings mobilization volume.
e) Terms offered to the market.
ii. The interest rate offered shall be competitive in the market. The interest rate shall be
reviewed periodically, according to the competitive patterns and shall be adjusted in a
timely manner to market conditions.
6.2.3 Shares Mobilization
As a long-term strategy, the SACCO shall encourage members to buy shares. Every member
shall be required to acquire obligatory shares to become a member. The Board of Directors
subject to approval by the ADM however, may review this from time to time. The shares shall
not be withdrawable, but transferable and the member shall earn dividends on his/her shares.

Strategies for shares mobilization

1. The SACCO should aim at retaining substantial earnings by managing its expenses.
2. Interest on member deposits expense should be managed effectively.

6.2.4 Dividends
The Society shall declare dividend on shares at a rate to be determined by the Board of Directors.
This dividend rate shall depend on the business performance for that period.
6.2.5 Flexible Savings Products
At member’s discretion, voluntary savings may be offered as a product with flexible
withdrawals. The society shall offer these depending on member’s needs. E.g. holiday savings.
6.2.6 Treatment of Shares on Loan Processing
Shares shall not be ranked in determining the maximum entitlement and shall be excluded in
determining security to the loan.

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6.2.7 Treatment of Deposits on Loan Repayment
A member who fails to meet the minimum contribution for deposits shall have the deficiency
recovered from the loan repayment and shall be treated as a defaulter for the loan repayment to
the extent of deposit contribution recovered from his/ her loan repayments.
6.2.8 Withdrawal of Savings
Savings withdrawal (BOSA Savings) shall only be allowed at the time a member is withdrawing
membership. There is no option for part-withdrawal.
6.2.9 Refund of Savings (Withdrawals)
i. The circumstances that would lead to withdrawal of savings include: -
a. Voluntary withdrawal.
b. Resignation.
c. Death of a member.
d. If the member has been expelled.
ii. A member resigning or faced with dismissal shall show a letter for the same
iii. In case of death the loans department in liaison with the insurance company covering the
Society, members shall process the forms. The loans department shall update all the
relevant records and forward to the finance department for disbursement. There is a
general register maintained by the loans department for all categories of withdrawals,
which indicates that the members have been addressed and therefore shall only liaise with
the finance department for any queries.
NB
For all withdrawal cases, the member shall be required to supply the Society with a notice of 60
working days (BOSA products) and 7 working days (FOSA Products if any) and must update
their guarantor’s position before their cases are processed.

6.10 General guiding principles

i. Every member beginning a relationship with the SACCO shall fill out and duly sign the
Member Registration Form.
ii. A reasonable effort shall be made to determine the true identification of all members,
verifying that they do not appear on the list of persons involved in drug traffic or in
reports issued by the authorities.

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iii. Care shall be taken to identify the legitimacy and ownership of all of the accounts and
those who use these services for depositing securities in custody and safety deposit boxes.
iv. Detect and be alert about any transaction and/or business that is not related to the
member's usual business.
v. As a general rule, a relationship with the institution shall never be established until the
identity of a potential member is satisfactorily verified.
vi. If a member refuses to hand over the required information, the relationship shall not be
established. Likewise, if the documents that the member offers to deliver in the future are
not present, any relationship between the SACCO and the member shall be terminated
vii. The identification and source of the funds of all of those members who carry out
Significant transactions shall be obtained and monitored.
viii. The following is a description of the general principles that shall be followed in
controlling illegal transactions
6.11 Individual Accounts
i. No account shall be opened without satisfactory identification for the SACCO.
ii. Establish the residence or work site of the customer. If it is not in the area where the
institution operates, ask why he/she is opening the account in this location.
iii. Consider the source of the funds used; very large cash deposits shall be questioned,
unless the customer's business has this particularity.
iv. Request references from the customer and verify that the customer has no prior dubious
activities.
v. Take special care in carrying out all of the steps when the customer is "recommended" by
the SACCO's employees or customers. At times, in these cases, the tendency is to accept
their word and overlook the checks.
6.12 Group Accounts
i. Check to see that the groups actually exists and, if possible, request prior banking
references; follow up with a phone call or a visit to the business.
ii. Consider the source of the funds and question large cash deposits, unless the business
merits it.
iii. The following information shall be obtained about large accounts: balance sheets, the
description of the line of business, list of suppliers and/or customers, etc.

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iv. The following are some definitions about the suspicious customer conduct and
transactions, which may alert us to the presence of illegal activities:
a. Insufficient, false or suspicious information.
b. Cash deposits that are not consistent with their activities.
c. Transfers of significant amounts that have no relationship to the activity
performed.

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 7. SAVINGS MANAGEMENT
The Sacco shall receive savings from members in form of non-withdrawable deposits in the
BOSA.
7.1. BOSA Savings
Members will pay their BOSA savings through deductions through employer’s payroll, directly
from their bank, deductions through standing orders or cash or cheque deposits to the Sacco’s
authorized accounts. These funds will be paid into designated accounts and a monthly
reconciliation shall be done to update member’s records.
7.2. Account Opening
i. All members of the Sacco shall have an individual account that will indicate their shares,
savings and loans. The Sacco shall maintain the member account in the computer system
and a number shall be allocated based on the member’s employment number.
ii. Upon receipt of member entrance forms and payment of the required fees, the customer
service shall key in the member’s details in the computer system. By the close of
business, the FOSA manager shall verify the veracity of all information keyed into the
system against the physical member application forms.
7.3. Account closure
When a member seeks to withdraw from the Sacco and the 60 working day (BOSA) or 7
working days (FOSA) notice period expires, the Sacco shall charge the member’s account with
withdrawal fee and refund the member his savings contributions. The fee for withdrawal shall be
Kshs.500/= or shall be reviewed by the Board of directors at least once per year. The
withdrawing member’s account shall then be closed.

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8. SUBSEQUENT DISCLOSURE REQUIREMENTS
8.1. Periodic Statements
The Sacco will provide a statement to members at the end of every three months in which there
is activity on their accounts. When there is no activity during a month, statements will be mailed
or delivered at least annually. The member may also request additional statements of his/her
account at a fee. The quarterly statement will include; Member names, Account number,
Statement period covered, transaction account activity by date, average daily balance, and
amount earned on the account and any fee assessed against the account.
8.2. Changes in the Account Terms
The Sacco will provide advance notice to members of any change in terms whenever the change
reduces the annual percentage yield or otherwise adversely affects the member. The notice of a
change is mailed or delivered to the member at least 30 days before the effective date of the
change.
8.3. Account Maturity
The Sacco will provide a notice of account maturity to holders of automatically renewing term
share accounts with terms longer than one month. A renewal is considered a new account and
thus requires full account disclosure.
8.4. Advertising
The advertising of Sacco share products will not contain any misleading information. When an
advertisement includes an annual percentage rate (APY), it will also include the following;
i. If an account has a variable rate, a statement that the rate may change after the account is
opened.
ii. A statement that the APY is accurate.
iii. A minimum balance needed in the account to earn the advertised APY
iv. The minimum balance needed to open an account
v. The term of the account and a statement that a penalty may be imposed for early
withdrawal.
vi. When a bonus is offered, the APY using that term and the time and minimum balance
required to obtain the bonus.
8.5. Record Retention
The Sacco in compliance with the requirements of Co-operatives Act 2004 and Sacco Societies
Act of 2008, will retain records showing full compliance with SASRA for a minimum of two
years.

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36
9. CONCLUSION AND RECOMMENDATIONS
i. In order for BRAEMEG SACCO to enhance the mobilization of the savings and in turn
attract and retain the members the following recommendations shall be applied.
a. Effective management through provision of efficient and quality service to the
members. This shall be through intensive training of the management, sound
financial management and instituting a system of checks and balances.
b. Competitive pricing of products and not to necessarily price oneself out of the
business.
c. Prudent investment in areas that would bring adequate returns to the members.
The investment must help sustain the primary objective of the Society.
d. The Society must strive to encourage savings from members by paying good
interest rates on the savings.

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10. BOARD APPROVAL OF POLICY
This document was discussed and approved for implementation as a policy and procedures
of the Society in respect to Savings Mobilization with effect from 2021.

It is approved under Minute Number of Board of Directors

Meeting held on

APPROVED BY:

Rowland Njagi 10th March 2021

Chairman Date

Josephat Okora 10th March 2021

Vice Chairman Date

10th March 2021

Hon. Secretary James Anyika Date

10th March 2021

Treasurer Joseph Thuo Date

10th March 2021

Chief Executive Officer Paul Asewe Date

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APPENDICES
SAVINGS PRODUCTS
1. Deposits
• Monthly Savings payable by all members of Braemeg Sacco
• Minimum Monthly contribution of Kshs. 2,000 Per Month is allowed.
• Interest on deposits payments are based on this Savings at the end of every
financial year on weighted average Method.
• Normal, Development and Emergency loans are issued based on deposit
balances i.e 3 Times member deposits for Normal loans and 4 times members
deposit for Development loans.
2. Christmas Savings
• This is a short-term members saving basically for the Christmas Holidays
• Registration is at the beginning of every year i.e January of Every year.
• Funds are disbursed on or before 20th of Every December.
• Minimum contribution is Kshs. 500 Per Month.
• Savings earn interest at 3% per annum.
• All Members interested fill Christmas Package form at the beginning of the
Year.
3. Braemeg Toto Savings
• This is a saving done for your Childs future financial needs; like Education,
entertainment etc.
• This saving is for members’ children below the age of 18yrs.
• Saving is done through check off system, direct deposit or a standing order.
• The saving will earn 5% annual interest after completion of a 12 month
cluster. All interest will be compounded onto the fund. Withdrawal before
completion of the cluster forfeits the interest for that cluster.
• In the event of withdrawal, Refund is only due after 45 days.
• Minimum Contribution is Kshs. 500 per Month.

Required Documents
• A copy of the child birth certificate/Birth notification.
• Recent Passport photo of the applicant.
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 • Copy of ID and a recent Passport photo of the next of Kin.(Birth certificate
if they are minors)

4. Housing Fund
In partnership with KUSCCO LIMITED, Braemeg Sacco offers this facility to its members
by accepting deposits from its members and remitting the funds to KUSCCO LIMITED for
purposes of Home ownership, Acquisition and/or Construction.
The KUSCCO Housing Fund offers an unbeatable mortgage scheme that aims to:
• Extend loans for construction of houses/homes for SACCO members.
• Facilitate outright purchase of an already built house.
• Assist members in construction of commercial houses.
• Assist members to buy plots.
Membership requirements;
• A member fee of Kshs. 3,000 upon entrance.
• Minimum Contribution Is Kshs. 5,000 Per Month.
• One must be a bonafide member of a BRAEMEG SACCO.
• To qualify for a loan, a member must have continually saved for at least 6
months.
• Loan granted is a maximum of Kshs. 7,000,000.
• Interest is at 13.5% per annum on reducing balance. Loan repayment
period is a maximum of 15 years Interest earning savings balance is Kshs.
100,000.
• Member’s savings with KHF and Title deed of the property shall form
security for the loan.
• Entitlement is 4/5 times a member’s savings.

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