CO-OPERATIVES SOCIETIES ACT ON AMENDMENT OF BY-LAWS

Co-operative Societies Act CAP 490 Section 8 states:
(1) A co-operative society may, subject to this Act, amend its by-laws, including the by-law which declares the name of the society.(2) No amendment of the by-laws of a co-operative society shall be valid until the amendment has been registered under this Act, for which purpose a copy of the amendment shall be forwarded to the Commissioner in the prescribed manner.
(3) If the Commissioner is satisfied that any amendment of the by-laws of the Co-operative society is not contrary to this Act and any rules made thereunder, he may register the amendment.
(3A) The Commissioner may, if he is satisfied that an amendment under this section was effected pursuant to a misrepresentation or concealment of a material fact by the person applying for registration, cancel the amendment.
(4) An amendment which changes the name of a co-operative society shall not affect any right or obligation of that society or any of its members, and any legalproceedings pending may be continued by or against the society under its new name.
(5) When the Commissioner registers an amendment of the by-laws of a cooperative society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence of the fact that the amendment has been duly registered.
(6) In this section, “amendment” includes the making of a new by-law and the variation or revocation of a by-law, but excludes the variation of the registered address of a co-operative society where this forms a part of the bylaws of such a society.

BECOMING A MEMBER OF A SACCO

All co-operatives in the country have By-Laws that defines the procedure of becoming a member which could be based on the area of operation of the co-operative.

Save and Borrow

QUALIFICATION FOR MEMBERSHIP

1. You have to be within the area of operation of that society that you want to join. This means that you have to be in say Uasin Gishu County or to be more specific Eldoret East District. However the area of operation is defined in the By-Laws of the society. Some co-operatives have a whole country as their area of operation and some don't so find out the area of operation of a society you want to join.
2. You have have to be within the field of membership with a certain defined common bond. That is to say, you can be an employee of a certain company, a member of a certain church or own land or business within the society's area of operation or doing business within the area of operation of the society you want to join.
3. You must be 18 years and over
4. You must be of good character and of sound mind
5. You will also be required to pay an entrance fees and minimum share capital as required by the By-Laws of the society you want to join.

Saccos are a great way of saving and borrowing.

Once you become a member i.e. when you have been presented with membership application form and you being accepted by the society, you will be required to start your monthly contributions immediately which must be consecutive for you to qualify for any loan after usually six months.

Once you sign the membership application form and accepted by the society, you will now be bound by the By-Laws of the society and policies and resolutions of the general meetings of the society. You will be subjected to a fine not exceeding Ksh. 20,0000.00 for any volition of By-Laws.