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SACCO INDUSTRY WATCH
KAKAMEGA VUMA DAIMA PRODUCTS AND SERVICES
BOSA PRODUCTS
SACCO FETED AGAIN
1. MAENDELEO LOAN
A section of Kavuda Board of Directors during Ushirika day 2019 a) The loan is granted maximum four times a
member’s deposits.
By. Hillary Mailo With the opening of the common bond, b) Subject to members ability, repayable within 72
the SACCO invites members from across months
Kakamega Vuma Daima SACCO the Republic of Kenya, who thereby c) Processing period is one month
Society limited scored high, become part of the SACCO’s journey d) A member must not have any other BOSA loan to
receiving an award for self- of transforming ordinary lives and qualify for this loan.
reliance during this year’s businesses into a great economic hub. e) Interest rate is 1.5 % per month on reducing
Ushirika Day celebrations held at the balance
Kakamega Rehabilitation School.
2. PRINICPAL/ENTERPRENUERSHIP LOAN
This award was in recognition of the Since inception, the Society endeavours The following guidelines shall apply in acquisition of
fact that Kakamega Vuma Daima SACCO to tailor its products, services and the principal loan:
has continuously relied on internally operations to help meet the customers’
generated funds to meet its members ever-changing needs and satisfaction, a) The maximum 3 times a member’s deposits
ever rising demand for credit facilities. an initiative that has placed the b) Maximum repayment period is 36 months
SACCO on the map as one of the most c) Processing period is 1 month
Kakamega Vuma Daima Savings and consistently successful SACCOs in the d) Interest rate on principal loan is 1.5% per
Credit Co-operative Society was region. This is in line with the Society’s
registered under the Co-operative slogan ‘empowering you economically’. month on reducing balance
Societies Act Cap 490 laws of Kenya e) A member applying for a principal/
on 17th October 1976 under the name The SACCO provides an array of
Kakamega Municipal Council Savings investment, savings and loan products entrepreneurship loan has an obligation to pay
and Credit Co-operative Society Limited. meant for all generations–from a the insurance cost on the loans.
child with a bright future to the senior 3. AUTOMOBILE LOAN
The Society draws its membership largely citizens-enabling them to enjoy their a) Repayment period is 60 months
from employees of the former Municipal sunset years. b) Maximum of three times a member’s deposits
Council of Kakamega. The SACCO subject to ability to pay
experienced a season of dormancy To enhance service delivery to c) Processing period is 1 month
between 1993 and 2002. It was revived members, the Society has installed d) Interest rate is 1.75% per month on reducing
in 2002 and started operations in Fin financials software from Centrino balance
January 2003. Technology a step that has been highly e) Requirements: Duly filled and signed loan
applauded by members. application form plus latest payslip
The Society rebranded to Kakamega 4. EMERGENCY LOAN
Vuma Daima SACCO Society in July Plans are underway to enhance a) Granted 3 times members deposits up to a
2013, a strategy that saw the Society revenue arms by the commencement maximum of Ksh100,000
increase membership following the of FOSA operations, development of b) Processed within 24 hours
establishment of the County Government the SACCO plot and rolling out even c) Repayment period is 12 months
of Kakamega and the abolition of the more innovative products and services d) Interest rate is 1.75% on reducing balance
Municipal Council. This provided an including but not limited to mobile depending on member eligibility
expanded scope for new members with loans all geared towards assuring e) Must be guaranteed by a maximum of three
the opening of the common bond to members an attractive return on their guarantors
include other eligible members. investment. f) May be granted when a member has an
outstanding development loan
g) The two thirds rule shall apply to ensure that a
member maintains a 1/3 of his/her basic salary
as take-home balance
5. KARIBU LOAN
This is a facility for new members who have not
finished the mandatory period of membership. The
objective is to assist new employees settle down and
encourage them to save for their future.
a) Maximum of Ksh300,000
b) Processed within 2 days subject to providing the
latest payslip
c) Repayment period is 24 months
d) Interest rate is 1.75% on reducing balance basis
depending on his/her eligibility
e) Mainly for new employees
f) The two thirds rule shall apply to ensure that a
member maintains a 1/3 of his/her basic salary
as take-home balance
6. COLLEGE LOAN
It is customized for interested members
a) Subject to members ability
b) Repayable within 36 months
c) 1.5% interest rate on reducing balance
7. SCHOOL FEES LOAN
a) The applicant must be a member of the Society
b) The maximum amount is Ksh100,000
c) Interest is 1.5% per month on reducing balance
d) Total loans granted including school fee loan
should not exceed three times a member’s
deposits
e) The member must belong to school fee savings
scheme
f) The loans must be repaid within the calendar
year
8. TOP-UP LOAN
A member may request the Society to clear the
remaining principal loan at a fee. The member then
applies for another principal loan. Must have repaid
the 50% of the development loan. A member is
granted the net over and above the loan balance.
9. LOAN REFINANCING
The product applies when a member requests the
Society to replenish the existing principal loan.
22| SACCO Star Magazine
