Updated 10 November 2026
If you want to withdraw from a SACCO in Kenya, you must give written notice, clear or transfer what you owe, and then wait for the SACCO to refund your deposits. The model by-laws for regulated non-withdrawable deposit-taking SACCOs, published by the State Department for Co-operatives, set the standard terms (deposit-taking SACCOs follow similar rules in their own by-laws): at least 60 days’ written notice to the board, and a refund of non-withdrawable deposits within 60 days of the SACCO receiving your notice, less any debts. Your share capital is not refunded. You transfer it to another member at its nominal value.
Checked on 8 November 2026 against the model by-laws for regulated SACCO societies (ushirika.go.ke, February 2026) (articles 6.15, 8, 9 and 11), the Kenya National Police DT SACCO FAQ and the Stima DT SACCO By-Laws 2026. Your own SACCO’s registered by-laws prevail, so read them before you file.
Contents: Ways membership ends · Steps · What you get back · Loans and guarantees · Shares · Late refunds · FAQ
In this guide
- Ways SACCO membership ends
- Steps to withdraw from a SACCO
- What you get back when you withdraw from a SACCO
- Loans, guarantors and offsetting
- What happens to your shares when you withdraw from a SACCO
- If your refund is late after you withdraw from a SACCO
- Withdraw from a SACCO: frequently asked questions
Ways SACCO membership ends
Under article 6.15 of the model by-laws, membership ends on death, withdrawal, expulsion, being certified insane, transferring all shares to another member, or no longer meeting the membership qualification (for example, leaving the employer or profession that the SACCO’s common bond is built on). Members who withdraw from a SACCO voluntarily usually do so when they change jobs, retire, emigrate or move to a SACCO with better dividends.
The by-laws do not allow you to stay a member while taking out part of your deposits. Article 8.3 says partial withdrawal of non-withdrawable deposits “shall not be allowed under any circumstances”. If you only need cash, a loan against your deposits is usually better than choosing to withdraw from a SACCO, because leaving ends your membership and your borrowing power.
Steps to withdraw from a SACCO
- Get your statement. Ask for a current member statement showing shares, deposits, loan balances and any loans you have guaranteed. Members are entitled to statements under article 6.13(e).
- Clear or settle loans. Repay outstanding loans, or agree to have the balance offset against your deposits.
- Release your guarantees. If you guaranteed other members’ loans, the borrowers must replace you with new guarantors or clear the loans. Police SACCO says withdrawal is processed only once liabilities are cleared and guarantees replaced.
- Transfer your shares. Find a member to buy your share capital at nominal value, or ask the SACCO how it handles share transfers (see below).
- Submit written notice. Fill in the SACCO’s withdrawal form or write to the board, attach a copy of your ID, and give the bank or M-Pesa details for the refund. Keep a stamped or emailed acknowledgement, because the date it shows is the date you formally asked to withdraw from a SACCO. The 60 days run from that date.
- Stop check-off deductions. If you pay through payroll, tell your employer’s payroll office once the SACCO confirms the withdrawal, so that deductions stop.
What you get back when you withdraw from a SACCO
Article 8.4 lists what a former member is paid, after the SACCO deducts outstanding debts and any amounts pledged as security:
| Item | Refunded? | Rule in the model by-laws |
|---|---|---|
| Non-withdrawable deposits (BOSA savings) | Yes | Within 60 days of the notice (art. 8.2, regulation 21(6)) |
| Dividends and interest due before exit | Yes | Paid with the refund (art. 8.4(b)) |
| Other funds held for you (except shares) | Yes | Paid with the refund (art. 8.4(c)) |
| Share capital | No cash refund | Transfer to another member at nominal value, with board approval (art. 11.3) |
| Entrance or registration fee | No | Paid on admission and not listed as refundable |
Your SACCO’s by-laws may set a longer notice period or different deadlines. Deposit-taking SACCOs with FOSA savings accounts usually let you withdraw FOSA balances at any time, because those accounts are separate from your BOSA deposits.
Loans, guarantors and offsetting
When members try to withdraw from a SACCO, loans cause more delays than paperwork. A SACCO can offset your deposits against your own loan. If your deposits are more than the loan, you get the balance. If they are less, you must pay the shortfall before you can exit. Guarantees work differently: your deposits stay locked as security until the borrower you guaranteed finds a new guarantor or repays the loan. If you only want to move a loan to a cheaper lender, read our guide to a SACCO loan buy-off before you exit.
What happens to your shares when you withdraw from a SACCO
Share capital is the SACCO’s core capital, so it is not paid out in cash when a member leaves. Under article 11.3, you can transfer your shares to another member in writing, at nominal value, with board approval, and the transferee pays the transfer fee set by the general meeting. Article 11.7 adds that shares still held in the SACCO continue to earn declared dividends, even after your deposits are refunded. Many SACCOs keep a list of members who want to buy shares, so ask the office before you look for a buyer yourself. You can estimate what your shares and deposits earn with our SACCO dividend calculator.
If your refund is late after you withdraw from a SACCO
- Write to the CEO and the supervisory committee and cite the date your notice was acknowledged and the 60-day rule in your by-laws.
- Report a regulated SACCO that does not pay to SASRA. See our guide on how to report a SACCO to SASRA.
- If the dispute is still not settled, you can take it to the Co-operative Tribunal, which hears disputes between members, past members and SACCOs (model by-laws article 29.1).
When a member dies, the family does not need to withdraw from a SACCO on the member’s behalf, because membership ends on death (article 6.15). A different process applies. The SACCO pays the deposits, interest and dividends, less any debts, to the nominee registered on the member’s account within 180 days of receiving proof of death (article 9.5). The nominee can also choose to join the SACCO and take over the account. Keep your nominee details up to date.
Withdraw from a SACCO: frequently asked questions
How long does it take to withdraw from a SACCO in Kenya?
Under the model by-laws, you give at least 60 days’ written notice and the SACCO refunds your deposits within 60 days of receiving it. Your SACCO’s own by-laws may differ.
Can I withdraw part of my SACCO deposits?
No. Partial withdrawal of non-withdrawable deposits is not allowed. You can borrow against them or withdraw fully.
Will I get my SACCO shares back?
Not as a cash refund. You transfer the shares to another member at nominal value with board approval.
Can I leave a SACCO if I have guaranteed someone’s loan?
Only after the borrower replaces you as guarantor or clears the loan. Until then, your deposits stay pledged.
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