Zoghori Sacco FAQ
Frequently Asked Questions About: Membership, Loans, Leadership, and More
Membership Queries
- Public Service employees; Goverment Institutions/Parastatals.
- Employees of Zoghori Sacco Society
- Employees in Private Companies and NGO’s
- Self–Employed Individuals
- Self-Help Registered Groups and Community Based Organizations.
- Corporate Bodies and Companies
Legally, a next of kin refers to a person's closest living relative(s) through blood or legal relationships. Next of kin typically includes individuals who share a close relationship through blood, marriage, or adoption. This can include spouses, children, parents, and siblings.
Inheritance & Intestate Succession: If a person dies without a will, their estate is distributed according to the Law of Succession Act. The order of inheritance usually starts with the spouse and children, followed by parents and siblings
Nomination in SACCOs: In SACCOs, members are required to nominate a next of kin who will be contacted in case of the member's death or incapacitation. This person may also be responsible for handling the member's affairs and receiving any benefits or dues
Access to Affordable Loans: Members can access various loan products, including development loans, emergency loans, school fees loans, and business loans, with competitive interest rates and flexible repayment terms
Attractive Savings and Investment Opportunities: Zoghori SACCO offers a range of savings accounts tailored to different needs, such as share capital accounts, deposit savings accounts, welfare services, holiday savings accounts, and children savings accounts. Members can earn competitive returns on their savings
Ownership and Decision-Making Power: As a member, you become a part-owner of the SACCO and have the right to participate in decision-making processes. Members can vote on important matters during the Annual General Meeting (AGM) and influence the policies and services offered by the SACCO
Financial Education and Support: Zoghori SACCO is committed to empowering its members through financial education and support programs. Members can benefit from workshops, seminars, and resources that enhance financial literacy and help manage personal finances effectively
Community and Networking: Being part of a SACCO fosters a sense of community and allows members to network with like-minded individuals. This can lead to valuable connections and opportunities for personal and professional growth
Dividend & Interest Payments: Members receive dividends based on their shareholding and interest on deposits in the SACCO, providing an additional source of income
Insurance Protection: Membership often includes access to insurance protection for savings and loans, providing peace of mind and financial security in case of death or permanent disability of the member in principal.
Welfare Services: Members have an option to open and run the Benevolent Fund account that allows them to cushion themselves and their loved ones against death.
Zoghori Sacco was established on 10th Jan, 2004 as a self-help group and officially registered as a SACCO on 21st March, 2005 with the main aim of improving the lifestyle of the community through inculcating and fostering a saving culture for prosperity and to liberate the communities from being a consumer society in nature to a society that embraces saving and investment for prosperity and growth by availing savings avenues and offering quick access to cheap and affordable credit facilities.
As a result, funds mobilized from the members of the Sacco would then provide cheap access to credit facilities, financial education and bring awareness on nurturing a saving culture; personal financial management and identification of opportunities and investments.
- Ownership and Voting Rights-Share capital represents your equity stake in the SACCO. As a shareholder, you’re not just a customer—you’re a co-owner. This gives you the right to vote in Annual General Meetings (AGMs) and influence key decisions like electing board members or approving dividends
- Dividends and Returns-Unlike regular savings, share capital earns dividends, not interest. These dividends are typically paid annually and can be quite lucrative depending on the SACCO’s performance.
- Non-Withdrawable but Transferable-Share capital is non-refundable, meaning you can’t withdraw it like savings. However, it can be transferred to a next-of-kin or sold to another member if you exit the SACCO
- Strengthens the SACCO-Your share capital contributes to the SACCO’s core capital, which is essential for: Expanding loan capacity, Meeting regulatory requirements and Enhancing financial stability and public trust
- Access to Products and Services-The SACCO requires a minimum share capital threshold to qualify for certain loans or services. Being compliant ensures smoother access to financial products
- Legacy and Inheritance-Shares can be passed on to your next-of-kin, making them a lasting asset that contributes to generational wealth.
- Loan Qualification: Your deposit savings determine your loan eligibility. Most SACCOs offer loans at a multiplier of your deposits—commonly 3x to 5x. So, saving more directly boosts your borrowing capacity.
- Withdrawable (with conditions): Unlike share capital, deposit savings can usually be withdrawn—though the SACCO requires a written notice period of 60 days. This makes them more flexible for members who may need access to their funds.
- Collateral for Loans: These deposits act as security for your loans. If you default, the SACCO may offset the loan against your deposits.
- Earn Interest, Not Dividends: Deposit savings earn interest, typically calculated annually and paid monthly or yearly. The rate depends on the SACCO’s performance and policies.
- Encourages a Saving Culture: Regular deposits build discipline and financial resilience. The SACCO offers specialized deposit accounts for education(children savings), emergencies or retirement(holiday savings account)
Loans Queries
- E-LOANS-Mobile Loans of upto Ksh 100,000/-
- Development Loans
- Super Development Loans
- Plot Loans
- Instant Loan
- Asset Financing Loans
- Emergency Loans
- School Fees Loan
You must be a member for a period of not less 6 months.
You must have saved regularly and consistently for the period mentioned above.
You must also meet all the requirements for the particular loan product you want to patronise.
Having met the requirements above, you are graduated on the following basis for multiplier loans:
- 1 st & 2 nd Loans at X2 of your Deposit savings.
- 3 rd and Consecutive loans at X3 of your Deposit Savings
- If your savings are equal or greater than 250K, you qualify for X4 (Particularly Super Development Loan, see particulars under loan products)
- The USSD CODE-*346#
- The Zoghori Kapu Mobile App
- The Zoghori PayBill Business No. 4077167 and respective Account Nos.
- Standing Orders through your Bank of choice.
- Direct Bank Transfer to our Bank Accounts- you must contact the office after each transfer
- The Check-Off Arrangements
Yes we charge loan processing fees which are reviewed periodically.
Yes we do check the status of an applicant's rating on CRB as an integral part of our loan appraisal process. Subsequently, we also have integrated CRB Systems with our loan management system where we list loan accounts as positive or negative.
Leadership Queries
Leaders are elected in two phases:
- During the Zonal Annual General Meetings, where members present nominate, elect or appoint some members amongst them to become Delegates who shall be representing them during the Annual Delegates Meeting
- During the ADM, the delegates elect the Board of Directors amongst themselves.
- The Directors then appoint each as chairperson, treasurer, secratary, vice-chairperson and form the necessary committees to run the affairs of the Sacco.
Elections to the respective capacities occur every year, delegates are elected on a three year rotational basis as well as the directors.
General Issues
Membership Cessation Queries
Submit a written notice 60 days in advance and clear all loans and obligations. You can hand-deliver the notice or serve it via our emails.
Your application will be received and reviewed for any liabilities on your savings accounts such as loan balances, guarantee commitments and or any pending dues owed to the Sacco. The refund will be processed accordingly upon or before expiration of the notice period subject to ledger fees not exceeding Ksh 500.
NOTE: Shares are transferrable and not refundable. As such, anyone terminating their membership, has to find a suitable buyer whom they will sell the shares to to recoup the value invested in the shares. Alternatively, they can let the shares be their investment which will always earn them dividends periodically.
Loan Security & Guarantee Queries
A Guarantor is a person (member) who endorses the loanee and their loan application, agreeing to take the responsibility of repayment of the loan if the loanee fails to meet the loan obligation and such may include savings deductions. A guarantor must be A Member of Zoghori Sacco who has these characters:
- Actively and regularly contributing in their savings.
- Actively and timely servicing their loans, if any.
- Importantly, they must have availability in their deposit savings equivalent or more than what you need for guarantee.
- Has a good credit record, if any.
- Must have minimum deposits of 6K.
A loan guarantor in a SACCO (Savings and Credit Cooperative) plays a crucial role in ensuring the security and repayment of loans and their roles and responsibilities are:
- Co-Signer/Endorser: A guarantor acts as a co-signer for the loan, providing an additional layer of security for the SACCO. If the borrower defaults on the loan, the guarantor is responsible for repaying the outstanding amounts
- Oversight: A guarantor is encouraged to keep track of the borrower's progress in repaying the loan. This proactive approach helps ensure that payments are made on time and in full
- Legal Obligation: Once a guarantor agrees to guarantee a loan, they are legally bound to the terms of the loan agreement. If the borrower fails to make payments, the SACCO has the right to demand payment from the guarantor
- Assurance of Repayment: By guaranteeing the loan, the guarantor assures the SACCO that the loan will be repaid, even if the borrower faces financial difficulties
- Social Collateral: In SACCOs, the guarantor system acts as a form of social collateral, leveraging trust and community ties to ensure loan repayment
Being a guarantor is a significant responsibility, and it is essential to carefully consider the implications before agreeing to guarantee a loan
The following do not qualify to be guarantors:
- Inactive Members those who do not actively contribute to their savings accounts.
- Loan Defaulters: those members with history of defaulting on their loans
- Overextended guarantors: those members who have guaranteed loans to an extent they do not have enough availability in their deposit savings and or have surpassed maximum numbers of loans they can guarantee.
A member is eligible to self-guarantee if:
- They have not guaranteed any other loans,
- The sum of total sum of loans they have guaranteed is lower than their deposit savings
This option allows members to guarantee their own loans without requiring other guarantors upto a maximum of 90% of their total deposit savings.
The Sacco generally accepts the following:
- Guarantors and Members Deposit Savings. Members can guarantee each other using their deposit savings as collateral to their loans.
- Land Title Deeds and Buildings (Real Estate): Members can use land title deeds and buildings within Kenya as collateral. The SACCO can lend up to 80% of the forced sale value of the land
- Motor Vehicle andCar LogBooksMembers can use their motor vehicles as collateral, provided the vehicle is not more than 10 years old and is comprehensively insured.
- Savings Schemes: Members can use their savings schemes as security for loans. The savings used as security are locked and remain inaccessible until the loan is cleared
- Insurance Policies: Some life insurance policies can be used as collateral for a loan. The lender can claim the policy's value if the borrower defaults.
- Chattels (Inventory and Equipment): For persons doing business and want business financing, their stocks, inventory and equipment and machinery might valued and admitted as collateral provided they are insured and have enough security.
- Government Stocks and Bonds: Financial securities, such as stocks or bonds, can be used as collateral. The lender can sell these assets to recover the loan amount if necessary.
The following befall a borrower in case of loan defaulting:
- Loss of Savings: The Sacco will first attempt to recover the loan from the member's savings, leading to the borrower losing their hard-earned lifetime savings.
- Loss of Collateral: If the loan was secured with collateral, such as property or vehicles, the SACCO may seize and sell the collateral to recover the loan amount.
- Strained Relations with Guarantors: The Sacco may invoke their exclusive rights to engage guarantors through demand letters and eventually savings recovery to repay borrowers loan and the borrower might burn bridges with guarantors.
- Legal Action: The SACCO may take legal action to recover the outstanding loan amount, which can result in additional legal fees and costs for the borrower.
- Credit Reference Bureau (CRB) Listing: The borrower may be listed with the Credit Reference Bureau, negatively impacting their credit score and making it difficult to secure loans or financial services in the future.
- Ineligibility for Future Loans: Defaulting on a loan can make the borrower ineligible for future loans from the SACCO or other financial institutions.
The following befall a Guarantor in case of loan defaulting:
- Liability for Repayment: If the borrower defaults, the guarantor is legally bound to repay the outstanding loan amount. The SACCO will hold the guarantor liable for the remaining loan balance
- Recovery from Guarantor's Savings: The SACCO may recover the outstanding loan amount from the guarantor's savings or deposits within the SACCO. li>Strained Relations: Being a guarantor can strain personal relationships, especially if the borrower defaults and the guarantor is held responsible for the repayment.
- Legal Action: The SACCO may take legal action to recover the outstanding loan amount, which can result in additional legal fees and costs.
- Credit Reference Bureau (CRB) Listing: The guarantor may also be listed with the Credit Reference Bureau, negatively impacting their credit score and making it difficult to secure loans or financial services in the future
- Ineligibility for Future Loans: Defaulting on a loan can make the guarantor ineligible for future loans from the SACCO or other financial institutions especially when listed with CRBs.