Share capital vs deposits: what you can sell, what gets refunded

Updated 26 September 2026

Your SACCO statement holds two very different kinds of money. Deposits are refunded when you leave and earn interest; share capital is never refunded, can only be transferred, and earns dividends.

Open a SACCO statement and you will usually see at least two balances: share capital and deposits (sometimes called savings or BOSA deposits). They look similar because you pay both from your salary or monthly contribution. They behave very differently when you want your money back.

The short version

	Share capital	Non-withdrawable deposits (BOSA)	Withdrawable savings (FOSA)
What it is	Your ownership stake in the SACCO	Savings held as security for loans	An ordinary savings or transaction account
Refunded when you leave?	No. Can only be transferred to another member	Yes, after loans and guarantees are cleared	You can withdraw any time, subject to the account terms
What it earns	Dividends, if declared	Interest, at a rate the SACCO sets	Interest, per the account terms
Used to secure loans?	No. Shares cannot be pledged as loan security	Yes, commonly	Depends on the SACCO
Offered by	All SACCOs	All SACCOs that take member deposits	Deposit-taking SACCOs only

Share capital

To become a member you buy a minimum number of shares at a par value set by the SACCO (regulation 21(1), Deposit-Taking Sacco Business Regulations, 2010). That money becomes part of the SACCO's capital. The rules then say three important things:

A member may not pledge shares as collateral for a loan from the SACCO (regulation 21(2)).
A member may transfer shares to other members on leaving, but the SACCO "shall not refund shares" (regulation 21(3)).
Shares may earn dividends out of net surplus, after required transfers to reserves, in line with the SACCO's dividend policy, and a SACCO may not pay dividends unless it meets SASRA's capital adequacy requirements (regulation 21(4) and (5)).

The 2020 regulations for non-deposit-taking SACCOs have matching rules (regulation 22). This is why share capital is the part people buy and sell on SaccoLink's marketplace: selling is the only way to turn it back into cash.

Non-withdrawable deposits (BOSA)

BOSA stands for back office service activity. These are the monthly deposits most members build up to qualify for loans. According to regulation 22 of the 2010 regulations:

They can be used as collateral against borrowing.
They are refunded only when a member withdraws from membership, and only if the member has fully repaid all debts and "is free from guarantee".
The SACCO may refund them within sixty days after receiving the member's written notice.
They earn interest at a rate the SACCO sets.

SASRA's own FAQ describes BOSA funds as not withdrawable unless the member takes a loan or withdraws from the SACCO. Many SACCOs work out how much you can borrow as a multiple of these deposits. NSSF Sacco and Kencream Sacco, for example, both describe standard loans as up to three times a member's savings, with some products allowing more.

Withdrawable savings (FOSA)

FOSA means front office service activity: the counter, ATM and mobile banking side of a SACCO. Only SACCOs licensed by SASRA for deposit-taking business can run these withdrawable accounts. Non-deposit-taking SACCOs, SASRA says, do not offer front-office withdrawal services. The 2010 regulations require withdrawable deposits to earn interest at the rate in the account's terms, accruing pro rata (regulation 23).

Dividends vs interest: what each one pays you

At the end of each financial year a SACCO that has made a surplus typically pays two things:

Dividend on share capital, as a percentage of your shares.
Interest on deposits, as a percentage of your deposits. Some SACCOs call this a rebate.

For 2024, SASRA reports that regulated SACCOs paid an average of 10.46% on share capital and 7.14% on members' deposits. These are averages across hundreds of SACCOs; your SACCO's rates will be different, and neither is guaranteed. Because deposits are usually much larger than share capital, the deposit interest often makes up the bigger part of what a member receives.

Are my deposits insured?

The Sacco Societies Act (section 59, 2019 revised edition) provides for a Deposit Guarantee Fund to protect members' deposits, "but not shares", up to KSh 100,000 per member. Ask SASRA or your SACCO whether this fund is operating before relying on it. Either way, shares are excluded, which is one more reason to know which balance is which.

What this means for you

If you are leaving: expect your deposits back, minus anything you owe, after the notice period. Expect to sell your share capital yourself.
If you are joining: the minimum share capital is money you are committing for as long as you are a member, and possibly longer if nobody buys it when you leave.
If you are buying shares: you are buying the share capital only. Deposits are never part of the deal.

Rules on transfers, notice and loan limits vary. Your SACCO's by-laws and product terms have the final word.

Sources

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