How to buy SACCO shares safely from another member

Updated 26 September 2026

Buying share capital from an exiting member can be a cheaper way to meet a SACCO's share requirement, but only the SACCO can confirm the seller owns those shares. Pay after the SACCO confirms the transfer, never before.

Many SACCOs require new members to build up a minimum amount of share capital. Buying shares from a member who is leaving can get you there faster, often below face value. The risk is simple: you are paying a stranger for something only the SACCO can confirm exists. Follow the steps below and you remove most of that risk.

First, understand what you are buying

You are buying share capital, the ownership part of a member's account. SACCOs do not refund share capital; regulation 21(3) of the Deposit-Taking Sacco Business Regulations, 2010 says a member may transfer shares to other members on leaving, "but the Sacco Society shall not refund shares." That is why sellers exist.

You are not buying the seller's deposits, their loan limit, or their dividends already declared for past years. Share capital earns dividends going forward, if the SACCO declares them. Depending on the SACCO, it may or may not count towards how much you can borrow. Many SACCOs work out loan limits from deposits (NSSF Sacco and Kencream Sacco, for example, describe standard loans as up to three times savings), so ask your SACCO whether shares you buy will change your borrowing limit at all.

Step 1: Be (or become) a member

Shares can only move to a member. If you are not one yet, register first or at the same visit. The SACCO's common bond still applies: under section 14 of the Co-operative Societies Act, membership depends on things like your age, your occupation or employer, and where you live or work, as set out in the SACCO's by-laws. Use the SACCO directory to check who a SACCO serves before you negotiate.

Step 2: Verify the seller with the SACCO, not with the seller

Ask the seller for their full name, ID number and member number.
Call or visit the SACCO using contact details from the SACCO's own website or branch, not a number the seller gives you.
Ask the SACCO to confirm that the person is a member and that the transfer of the stated amount of share capital is possible. Some SACCOs will not disclose balances to a third party; in that case ask the seller to come with you so the officer can confirm with both of you present.
Ask whether the seller has loans or guarantees that would block the transfer. A seller who is still guaranteeing someone's loan may not be allowed to exit.

Step 3: Agree the terms in writing

Write down the seller's and your names, ID numbers and member numbers; the amount of share capital (face value); the price you will pay; who pays the SACCO's transfer fee; and a line that says payment is due only after the SACCO confirms the transfer. As an example of fees, Nyati Sacco's share transfer form asks the receiving member to pay a KSh 200 transfer fee and attach ID copies of both members. Your SACCO may charge differently.

Step 4: Sign the SACCO's transfer form together

Use the SACCO's own form. Fill it in at the branch, or follow the process the SACCO describes for members who cannot attend. Keep a photo or copy of the signed form.

Step 5: Pay only after the SACCO confirms

This is the rule that protects you most. Do not send a deposit, a "commitment fee" or the full amount before the SACCO has approved the transfer. Once the SACCO confirms, in writing or on your updated statement, pay the seller by a traceable method: M-Pesa to the seller's own registered number, or a bank transfer to an account in the seller's own name.

SaccoLink never takes payment for shares and never asks you to pay a middleman. If anyone claiming to be from SaccoLink asks you for money, it is not us. See our transfer safety guide.

Step 6: Keep the paper trail

The signed transfer form (copy or photo)
The SACCO's written confirmation or your statement showing the new share balance
The M-Pesa or bank receipt for what you paid
Your written agreement with the seller

What should make you walk away

The seller will not come to the SACCO, or will not let you speak to the SACCO directly.
You are asked to pay before the SACCO approves.
The price is far below what other sellers of the same SACCO are asking, with pressure to pay today.
The payment number or account name does not match the seller's name.
The seller offers "deposits" or a ready-made loan limit along with the shares. Deposits are refunded to the member who saved them; they are not normally part of a share sale.

Our guide to SACCO share scams and red flags goes into more detail.

Is buying shares worth it?

That depends on the SACCO. Look at its recent dividend record, how it is regulated, and whether the shares help you meet a joining requirement you would otherwise have to fund at full value. Remember that SASRA's 2024 report notes new shares "will continue to be issued at the prescribed par value", so you can always buy directly from the SACCO at face value. A seller's shares only make sense if the price is below that, or if the SACCO lets you count them toward something you need now.

Ready to look? Browse share listings, or post a buy request saying which SACCO you want and how much share capital you need.

Sources

This guide is general information, not financial advice. SACCO rules differ, so confirm details with your SACCO.