Page 56 - Ramco JO SACCOStar _Vol 50.indd
P. 56
EXPERTS LOUNGE
ASK THE LAWYER
As a member of a SACCO I defaulted on I was an employee of KNFU and
a loan I took from the SACCO and was therefore a member of KNFU SACCO
listed with a Credit Reference Bureau, from 1984 to 2015. The SACCO
but begin to service my loan later collapsed but the organization still
through check-o?. I further promised operates. My shares were alleged to
to clear my loan if my CRB status is have been transferred to Ukulima
changed to active. Am I entitled to my SACCO where I became a new member.
annual dividends and pro?ts to my My shares were not transferred wholly,
share contribution from the SACCO? they were slashed. Where do I begin to
(Beatrice, Nairobi) recover my shares? (Joshua-Kiambu).
Hello Beatrice, Joshua,
You are entitled to your annual When a SACCO collapses, it is put under
dividends and profit. However, loan liquidation and the liquidator pays
security documents usually allow a the debts of the SACCO, first and then
lender to recover the loan amount distributes any remaining assets of the
from any account or funds held for the SACCO to the members in the manner
borrower. Your SACCO can determine as approved by the Commissioner.
whether to release the same to you or This may be the reason your shares
use it to off-set your loan depending on are reduced. However, to get a true
how far you have settled the loan. picture, contact the liquidator or the
Commissioner for the last accounts of
What does the law state on the the KNFU SACCO.
acquisition of single business permits for
conducting SACCO business in Kenya? What do you do when a SACCO delay
Should SACCOs acquire single business to usher you out even after writing
permits from County governments for an o?cial letter to withdraw from the
operation? SACCO?
(Stephen-Kakamega) (Susan-Nyeri)
Stephen, Susan, Jackline Omolo,
SACCOs should acquire single business If you followed the right procedure Advocate of the High Court of Kenya
permits from the County Government under your SACCO by-laws and fail to
for trading in the county. The same is get the refund or transfer to the SACCO
provided for under the by-laws of each you intend to join, then you can seek
County Government. remedy from the Co-operatives Tribunal.
54 | SACCO Star Magazine
