How leaving a SACCO works: notice, refunds and clearing loans

Updated 26 September 2026

To leave a SACCO you give written notice, clear your loans and any guarantees, and wait for your deposits to be refunded. Your share capital is not refunded; you transfer it to another member.

People leave SACCOs for all sorts of reasons: a new job outside the common bond, retirement, moving county, or simply needing cash. The process is not complicated, but it is slower than closing a bank account, and there are two things that trip up most members: guarantees and share capital.

What the law says

Deposits are refunded only on exit, and only when you are clear. Regulation 22(1) of the Deposit-Taking Sacco Business Regulations, 2010 says non-withdrawable deposits are refunded only when a member withdraws from membership, "provided the member has fully repaid all his debts and is free from guarantee."
Refund timing. The same regulation allows a SACCO to refund non-withdrawable deposits within sixty days of receiving the member's written notice (regulation 22(3)). For non-deposit-taking SACCOs, the 2020 regulations say the SACCO "shall refund" within sixty days of the written notice to withdraw, again only once debts and guarantees are cleared.
Share capital is not refunded. You may transfer shares to other members on leaving, but the SACCO "shall not refund shares" (regulation 21(3); regulation 22(2) of the 2020 regulations).
The SACCO has first claim. Section 36 of the Sacco Societies Act gives a SACCO a first charge over a member's deposits, share capital, dividends and interest for any debt owed to it, including debts arising as a guarantor. It may also refuse withdrawals from a deposit account while the member is in arrears.

The exact notice period, forms and any fees are set by your SACCO's by-laws and policies. Several SACCOs publish theirs: NSSF Sacco, Kencream Sacco and Mhasibu Sacco each ask for 60 days' written notice on their websites. Mhasibu also offers a 7-day option at a charge of 10% of the deposit balance. Check your own SACCO's rules.

Step by step

Get a full statement. You need to see your share capital, deposits, any loans, and every loan you have guaranteed.
Clear or plan to clear your loans. In many SACCOs, outstanding loans are offset against your deposits on exit. Ask the SACCO to show you the calculation, so you know what refund to expect.
Get released from guarantees. This is the step that holds up most exits. If you have guaranteed a colleague's loan, the SACCO will not treat you as "free from guarantee" until that loan is paid off or another guarantor replaces you. Talk to the borrowers early. Our guide on being a guarantor explains substitution.
Arrange the transfer of your share capital. Because shares are not refunded, find a buyer who is or will become a member. You can list your shares on SaccoLink for free, or look for people already posting buy requests for your SACCO. See how to sell your SACCO shares.
Submit written notice on the SACCO's withdrawal form. Keep a stamped copy or the reference number. The notice period normally runs from the date the SACCO receives it.
Stop or adjust payroll deductions. If your contributions come through a check-off at work, confirm with both the SACCO and your employer's payroll office when deductions will stop.
Collect your refund. The SACCO pays out your deposits, less what you owe, to your nominated account.

What you get back, and what you don't

Balance	On exit
Non-withdrawable deposits	Refunded after notice, minus loans and other amounts owed
Share capital	Not refunded; transferred to another member if you find a buyer
Dividends and interest already declared	Usually paid to you; confirm how the SACCO treats a year in which you leave part-way
Withdrawable FOSA savings	Yours to withdraw per the account terms, though a SACCO may block withdrawals while you are in arrears

Why exits cause so many complaints

SASRA's 2024 Supervision Report says claims for refunds of savings and deposits or share transfers were 491 of the 764 complaints it handled that year, about 64%. The report explains that many members do not realise share subscriptions are equity capital and "are therefore not refundable upon withdrawal and exit from membership," and that although shares are transferable in theory, there is no ready market for them. Knowing this before you give notice saves a lot of frustration.

Leaving because of death

If a member dies, section 39 of the Co-operative Societies Act lets the SACCO transfer the member's share or interest to their nominee or personal representative, and requires other money due to the member to be paid to that person. Make sure your SACCO has an up-to-date nominee on file.

Checklist before you hand in notice

Statement collected, loans and guarantees listed
Guarantors lined up to replace you on any loan you guaranteed
A buyer, or a listing, for your share capital
Your SACCO's withdrawal form and any early-exit fee understood
Payroll told when deductions should stop

If a SACCO does not refund your deposits after you have met every condition, raise it in writing with the SACCO first. If that fails, you can complain to SASRA.

Sources

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