BY-LAWS

FOR

KAPKATET
SAVINGS AND CREDIT
COOPERATIVE SOCIETY
LIMITED
1. NAME AND AREA OF OPERATION
The society shall be called KAPKATET SAVINGS AND CREDIT
CO-OPERATIVE SOCIETY LIMITED (LTD), herein after referred
to in these by laws as “The society” and its area of operation
shall be KAPKATET ward, BURETI Sub-county KERICHO
County
2. REGISTERED OFFICE/ POSTAL ADDRESS
The registered office of the society shall be at KAPKATET
CENTRE and the postal address shall be P.O. BOX 56 LITEIN.
Notice of any change of address shall be given to the
Commissioner for Co-operative Development and Marketing
herein after referred to as ‘the Commissioner’ and to all
members of the society through their last known address as per
records held at the society within 30 days of such change.
3. DEFINITIONS AND INTERPRETATIONS
3.1 In these by-laws, unless the context otherwise suggests words or
phrases shall be defined and interpreted in accordance with the
Co-operative Societies Act Cap 490 Laws of Kenya and the Rules
made there under herein after referred to as the “Act” and
“Rules” respectively.
In these by-laws save as otherwise expressly stated:
(i) “General Meeting” shall be a meeting (either “annual”
or “special”) for all members duly convened by the
society to conduct its business.
(ii) “Management Committee” shall mean the members
elected in a duly convened General Meeting to govern
the Business of the society as per these by-laws herein
referred to as the “committee”.
(iii) “Commissioner” shall mean “the Commissioner for Co-
operative Development as provided for in the Act.”
(iv) “Tribunal” shall mean the Co-operative Tribunal
established under the Act to hear and determine
disputes.
(v) “SACCO” shall mean Savings and Credit Co-operative.
(vi) “Shares” shall mean the amount represented by a
member’s portion in the equity of the society as a co –
owner.
(vii) “Applicable Law” shall mean the Co-operative Societies
Act, Rules and these by-laws.
(viii) “Co-operative Society” shall mean a society registered
under the Act.
(ix) “Dividend” shall mean members share of the surplus of
the society which is divided amongst its members.
(x) “Returning officer” is a person appointed to oversee or
conduct the elections of a co-operative society at a
general meeting.
(xi) “Member” includes a person or a co-operative society
joining in the application for the registration of a
society, and a person or co-operative society admitted
 to membership after registration in accordance with the
by-laws.
(xii) “Deposits” shall mean a sum of money paid on terms
under which it shall be repaid, with or without interest
or premium, and either on demand or at a time or in
circumstances agreed by or on behalf of the person
making the society to receive it at the risk of the
society receiving it.
(xiii) “A nominee” means a person appointed by the member
to inherit the shares, deposits and other interests in the
society upon the death of that member.
3.2 In these by-laws where the masculine gender is referred to, it
shall be construed to include the feminine gender.
3.3 Any questions concerning interpretation of these by-laws or any
matter not provided for therein, errors and omissions shall be
referred to the Commissioner.
4. OBJECTS
4.1. The objects for which the society is established are to organize
and promote the welfare and economic interests of its members.
4. 2. In particular, the society shall undertake:
a) To promote thrift among its members by affording them an
opportunity for accumulating their savings and deposits and
create thereby a source of funds from which loans can be given
to them exclusively for provident and productive purposes, at fair
and reasonable rates of interest; thereby enabling them to use
and control their money for their mutual benefit.
b) To ensure personal growth through the introduction of new
products and services that will promote the economic base of the
members.
c) To ensure progress of members and the society through
continuous education programs on proper use of credit,
reduction of poverty, human dignity and co-operation.
d) To apply the co-operative principle of co-operation among co-
operatives in order to promote members’ interests. In
furtherance to the objects the society shall affiliate to the
relevant National Co-operative Union and the Apex society.
4.3 For the attainment of the above objects, the society may do acts
and things that are permissible under the Act, rules and these
By- laws including but not limited to acquire property and
chattels and doing all such other things as are incidental or
consequential to the economic enhancement of its members
interests provided such act is approved by the members in a
general meeting.
5. CO-OPERATIVE PRINCIPLES AND VALUES
In order to achieve its objects the society shall act in accordance
with the following Co-operative principles and relevant values.
5.1. CO-OPERATIVE PRINCIPLES
(a) Voluntary and open membership
 The society shall always be guided by the principle of
voluntary and open membership in its member recruitment
drive without political, ethnic, religious, gender or social
discrimination.
(b) Democratic member control
The society will be fully controlled by members who will
have equal voting rights on the basis of one member one
vote.
(c) Economic participation by member
Members shall contribute equitably to the capital of the
society and share in the results of its operations.
(d) Autonomy and independence
The society shall operate on mutually acceptable terms
with its stakeholders who will ensure its autonomy and
independence.
(e) Education, training and information
The society shall foster reciprocal, on–going education
programmes for members, leaders, staff and the
community so that they can teach and learn from each
other or
legal document, from the appropriate resource persons in
understanding and carrying out their respective roles.
(f) Co-operation among co-operatives
In order to better serve the interests of the members and
the community, the society shall actively co-operate with
other co-operatives locally, regionally, nationally and
internationally.
(g) Concern for community in General
The society shall show concern to the community in which
it exists and operates.
5.2 CO-OPERATIVE VALUES
The values shall be self-help, mutual responsibility, equality and
equity. It shall practice honesty, openness and social
responsibility in all its activities
6. MEMBERSHIP
Membership shall consist of:-
a) Original members who signed the application for
registration.
b) New members subsequently admitted in accordance with
these by - laws.
7. QUALIFICATION FOR MEMBERSHIP
A person who possesses the following qualification shall be
eligible for membership:-
(a) Is within the field of membership consisting of the
following common bond; FARMERS.
(b) Has attained the age of 18 years.
(c) Is of good character and sound mind
(d)Pays the entrance fee and share capital as prescribed in
these by-laws.
 Provided that no member shall belong to more than one Sacco
society having similar objects operating within the same area of
operation
8. APPLICATION FOR MEMBERSHIP
Every applicant for membership shall complete an “application
for membership” form. This form shall be drawn to show all the
information required for the purpose of registration of members.
9. ADMISSION INTO MEMBERSHIP
9.1 An applicant shall be admitted to membership on application
upon payment of an entrance fee of KSHS. 500/= and for such
other minimum shares as shall be fixed by the General meeting
from time to time.
9.2 Upon admission the member’s name shall be entered in the
membership register and a membership number issued.
9.3 The member shall sign or make a thumb mark in the register of
members in the presence of two members of the committee to
indicate his/her acceptance of the by-laws of the society.
9.4 Members shall be admitted by the committee subject to
Confirmation by the next general meeting.
9.5 The member shall pay for a copy of the society’s by-laws at its
actual cost to the society.

10. REFUSAL OF ADMISSION

The Committee may refuse admission to a person after assigning
reasons for their decision. Such a person, if otherwise eligible for
membership, shall have the right to appeal to the next General
Meeting through a member.
11. RIGHTS OF MEMBERS.
A member of the society shall have the right to:
a) Attend and participate in decision making at all general
meetings of the society and vote;
b) Be elected to organs of the society, subject to these by–laws;
c) Enjoy the use of all the facilities and services of the society
subject to the society’s by–laws;
d) All legitimate information relating to the society, including,
internal regulations, registers, Minutes of general meetings and
supervisory committees reports, annual accounts, inventories
and investigation reports, at the society’s registered office.
12. OBLIGATIONS OF MEMBERS
A member of the society shall have the obligation to:
i) Observe and comply with all the society’s by–laws and
decisions taken by the relevant organs of the society;
ii) Buy and pay up for shares or make any other regular
payments provided for in these By–laws;
iii) Meet the debts of the society in case of insolvency in
accordance with the provisions of the Act and these by–laws.
13. MEMBER’S PERSONAL STATEMENT
The society may use “check off system”, standing orders or cash
for payments of members shares, deposits and loan repayments.
 However, when direct payments have to be made, they shall be
paid directly into the society’s bank account and a receipt issued
by the society on submission of the bank slip.
Every member shall receive regular statements at least once
every three months, which shall contain particulars of
membership, shares, deposits and loan transactions with the
society.
14. CESSATION OF MEMBERSHIP
Membership in the society shall cease or deemed to have ceased in
regard to any member from the date of:
(i) Death
(ii) Withdrawal
(iii) Expulsion
(iv) Being certified to be of unsound mind.
(v) Transfer of shares to another member.
(vi) Failure to remit share contributions and loan repayments
for a continuous period of six months without valid reasons
or leave of the society.
(vii) Ceasing to hold qualification for membership as specified in
these by-laws provided that members who have lost the
common bond may retain their membership.
15. SUSPENSION
15.1 The committee may suspend a member subject to the decision of
the general meeting to expel who:
a) fails to fulfill his/her obligations to the society whether stated
in these by-laws, general internal regulations, a resolution of
the general meeting or in contravention of any other
provided such a member has been called upon to do so but
has failed,
b) Is a member of another society having similar objects,
c) Acts in any manner prejudicial to the interests of the society.
Provided that, no member shall remain in suspension for a period
of more than 12 months.
16. PROCEDURE OF SUSPENSION AND EXPULSION
a) Upon formal and written proof that a member has committed a
violation punishable by expulsion, the committee shall serve a
thirty (30) days written notice to the member stating the
reason(s) for the proposed expulsion and requiring him/her to
file a defense.

b) Upon the expiry of the 30 days and taking into consideration

the member’s defense if any, the committee shall initiate
administrative inquiry and make a decision on its findings within
15 days. The Committee may;-

i. Suspend the member pending expulsion by the

General Meeting or
 ii. Impose any other punishment as provided for in the
applicable law.

c) The suspended member may appeal to the general meeting if

not satisfied with the decision of the committee.

d) The committee shall present their findings to the next General

meeting which may either lift the suspension or expel the
member.

e) A member who is expelled from the Sacco society shall have

the right to appeal to the tribunal.
17. WITHDRAWAL FROM SOCIETY
A member may at any time withdraw from the society by giving
at least sixty (60) days written notice to the committee.
18. PAYMENT ON CESSATION OF MEMBERSHIP
18.1 On cessation of membership, a person shall be refunded the
following amounts:
a) Any dividends or interests due to him prior to the date
membership ceased and
b) Any other sums held by the society on his behalf after
deduction of any sum owed to the society.
19. NOMINEE
Every member shall nominate in writing one or two persons as
nominee(s). The nomination shall be attested to by two
witnesses who are members of the society. The names of such
nominee(s) shall be entered in the nominee register.
Provided that a member shall have the right to change his/her
nominee(s) in writing in the presence of two attesting witnesses
who are members of the society

20. PAYMENT TO NOMINEE

The society after obtaining such documentary proof of the death
of a member as it may consider necessary, shall pay to the
nominee the value of the deceased member’s deposits, interest
and dividend after deducting monies owed to the society, if any.
21. ADMISSION OF NOMINEE
A nominee may be admitted to membership of the society if
qualified. The deposits, interest and dividends due to the
deceased member shall be transferred to the account of that
nominee.
22. SOURCES AND APPLICATION OF FUNDS
22.1 The funds of the Society shall consist of:
a) Entrance fee.
b) An unlimited number of shares of the KShs 1,000/= each.
c) Deposits from members and loans from non-members.
d) Administration fees and penalties.
e) Statutory reserve fund and any other reserve fund as may be
kept by the society.
 f) Any surplus resulting from operations of the society.
g) Any donations, gifts from other bodies, organizations and
individuals.
h) Funds obtained from lawful miscellaneous sources.
22.2 The funds of the society shall only be applied to the promotion of
the stated objects of the society as set forth in these by laws, and
shall be invested in:
a) Such investments and securities as are authorized for the
investment of trust funds,
b) The shares of any other co-operative society,
c) Any bank licensed under the Banking Act,
d) The stock of any statutory body established in Kenya or in any
limited liability company incorporated in Kenya or in any other
manner approved by a resolution at a general meeting of the
society.
e) Loans granted to members.
23. SHARES
Every member shall hold at least 10 shares of KShs . 100/=
each as shall be fixed by the General Meeting. However, no
member shall hold more than one-fifth of the total shares of the
society.
24. TRANSFER OF SHARES
a) With the approval of the Committee, a member may at any
time transfer shares to another member but not to any other
person. Such transfers must be in writing and at nominal
value
b) All transfers of shares shall be registered with the society and
no transfer shall be valid unless so registered. A fee of KShs.
2,000/= shall be payable by the transferee.
25. LIABILITY
a) The liability of a member shall be limited to the nominal value
of the shares held by him.
b) In the event of liquidation, where available funds are
insufficient to pay the full nominal value of the shares held by
members; the funds shall be distributed pro-rata among the
shareholders according to the amount of shares held by each.
26. POWER TO BORROW
a) Loans may be obtained from non-members subject to the
maximum amount and terms approved by the General
meeting and commissioner for co-operative development.
b) For the securing of any loans accepted by the society under
paragraph (a) above, the society may grant a charge over its
assets. The authority to grant a charge shall be reserved to
the General Meeting. Subject to approval by the commissioner
for co-operative development.
c) The rate of interest on loans shall not exceed the current
market rate.
27. RECEIPTING OF MONEY
 a) Money received on account of shares, deposits, Loans,
interest’s fees or fines shall be evidenced by a printed receipt
in a form to be approved by the Committee. Every member
paying any money to the society shall be identified on the
receipt.
b) Should the receipt issued by the society be lost or destroyed,
immediate notice of such fact shall be given to the Treasurer
who may be authorized by the Committee to issue a duplicate
receipt at a reasonable fee.
c) The Committee may require the member to sign an indemnity
to protect the society against any loss due to the issuance of
such duplicate.
28. PAYMENT/DISBURSEMENT
Payments made by the society shall be evidenced in writing in a
form approved by the committee.
29. STATUTORY RESERVE FUND
a) The society shall pay into the Reserve Fund maintained in
pursuance of the provisions of Section 47 of the Act and the
Rules one fifth (1/5) of any net surplus resulting from the
operations of the society during a financial year.
b) The Reserve Fund of the society shall be invested in the
manner provided for in these by-laws.
c) The Reserve Fund shall be indivisible and no member shall be
entitled to claim a specific share of it.
d) No withdrawal shall be made from the reserve fund of the
society without a resolution from the General Meeting and a
written approval from the Commissioner.
30. GENERAL MEETING
30.1. The supreme authority of the society shall be vested in the
General Meeting of members.
a) An Annual General Meeting shall be convened within four
months after the end of the society’s financial year.
b) A special general meeting of the society may be held when
convened by:-
(i) The Committee.
(ii) The Commissioner.
(ii) The Committee within 15 days of receipt of a written
request by at least 25 members or one fourth of the
members, whichever is less.

Provided that when the General Meeting is convened at the

request of the members, the request must be deposited by
registered mail at the society’s address or delivered to the
manager at the society offices within normal working hours.
(iii) The members in (b) iii) above, if the Committee fails
to convene a meeting within fifteen days of receiving the
request. The members shall give notice to the other
members of the society, stating the object and reasons
 for the meeting and the fact that the Committee has
failed to convene the meeting.
30.2. Any business not completed at the annual General Meeting, may
be taken up at a subsequent special General Meeting of the
society.
31. DUTIES OF GENERAL MEETINGS
31.1 The General Meeting shall have the powers and duties prescribed
in the Act, Rules and these by-laws. It shall:
a) Consider and confirm the minutes of the previous
General Meeting.
b) Consider reports of committees, the Commissioner or
his/her representative and the audited accounts on the
society’s activities during the past financial year.
c) Consider and resolve on the manner in which any
available surplus shall be distributed or invested,
subject to the Act and rules.
d) Elect or remove members of the Committee and the
Supervisory Committee, subject to the Act, Rules and
these by-laws.
e) Fix the indemnity for the elected committee members
and management staff.
f) Consider recommendations from the Committee,
against suspension and expulsion of members.
g) Consider appeals against refusal of membership by the
Committee.
h) Confirm or reject admission of new members by the
committee.
i) Fix the maximum liability which the society may incur in
loans and deposits from both members and non-
members.
j) Approve the estimates of income and expenditure for
the financial year following the General Meeting.
k) Fix the honoraria, if any, for officers or employees of the
society.
l) Decide on the management structure, including the
establishment of branches to facilitate efficient and cost
effective delivery of services to members.
m) Appoint bankers, auditors and advocates of the society
for the ensuing year.
n) Affiliate the society to National Co-operative
Organization for SACCO societies and the Apex society,
subject to approval of the General Meeting;
o) Transact any other business of the society for which
notice has been given to members in the manner
prescribed in these by-laws.
31.2 All members have a right to attend the General Meeting and
participate in its deliberations, however they may be required to
identify themselves.
32. RECORD OF BUSINESS
 All business discussed or decided at the General Meeting shall be
recorded without erasures and corrections in a Minute Book,
which within one week of the meeting, shall be signed by the
Chairman of the meeting and at least one other committee
member who was present at the meeting, to indicate that in their
opinion the minutes are a true and complete record of all matters
discussed or decided at the meeting.
At the next meeting after approving any alterations or variations
which shall be written immediately below the above signatures
and not as alterations to the original record, the meeting shall by
resolution authorize the chairman to sign and date the final
record.
33. NOTICE OF MEETINGS
(a) The general meeting shall be convened by giving at least
15 days written notice to the members.
(b) The Honorary Secretary shall take all usual steps to publish
the notice of the meeting in public places, on the society’s
notice board(s), in local newspapers or news–sheets,
including the media or any other mode decided by the
members.
(c) All notices shall include a statement of the business to be
dealt with.
34. QUORUM
Except when convened by the Commissioner, the presence of at
least 15 members or a fourth (1/4) of the total membership,
whichever is less, shall constitute a quorum for the conduct of
business at the General Meeting. When a quorum is not attained
the chairman shall adjourn the meeting and fix a date for another
meeting within one month, which shall be advertised as
prescribed in these by-laws. If a quorum is again not attained,
the chairman shall declare the meeting open with those present
one hour after the advertised time of the meeting.
35. ELECTIONS
a) With every notice of the General Meeting convened in
accordance with these by-laws, where elections will be held, the
Committee shall notify the members of the vacancies arising in
both the Committee and the Supervisory Committee.
b) During elections, the Returning officer shall call for nominations
from the floor. Each candidate must have a proposer and a
seconder.
c) At the elections, members shall decide, by majority vote, the
method of voting. The method may be secret ballot or queuing or
by show of hands.
d) No member shall be entitled to vote by proxy.
e) Irrespective of the number of shares held by him, no member
shall have more than one vote.
35.1 Within fourteen (14) days of the elections, the Honorary
Secretary shall forward to the Commissioner the names and
addresses of all persons elected.
35.2 A new committee elected at the General Meeting shall not
assume office unless they have satisfied the requirements of the
Act, Rules and these by-laws.

36. THE MANAGEMENT COMMITTEE

a) The Committee shall be the governing body of the society
elected from the general membership and shall consist of
Nine (9) Members. It shall include the Chairman, Vice
chairman, Treasurer and Secretary all of whom shall be
elected by the Committee from amongst the members of the
Committee.
b) Members of the committee shall hold office for a period of
three years provided that, one-third of the committee
members shall retire every year but will be eligible for re-
election.
c) Where the membership of the committee falls below five the
committee shall co-opt qualified member(s) into the
committee until the next General Meeting
37. ELIGIBILITY FOR MEMBERSHIP TO THE MANAGEMENT
COMMITTEE
No person shall be eligible for membership in the committee of
the society if he/she:-
a) Is not a member of the society;
b) Is under eighteen years of age;
c) Is unable to read and write;
d) Receives any remuneration, salary or other payments from
the society save as in accordance with the Act;
e) Is a committee member in two other societies;
f) Lends money on own account;
g) Is an undischarged bankrupt;
h) Is of unsound mind;
i) Has been convicted of any offence involving dishonesty or is
sentenced to imprisonment for a term exceeding three
months;
j) Has been convicted of any offence under the Act or rules.
k) Has any uncleared debt owing to the society at the end of its
financial year other than in respect of a loan granted under
the provision of any regulations made under the Act;
l) Is a person against whom any amount of money is due under
a decree, decision or order or is pending recovery under the
Act.
38. MANAGEMENT COMMITTEE MEETINGS
(a) Meetings of the Committee shall be held at least once a
month subject to a maximum of 15 meetings in a year. At
least five (5)of the total number of committee members
shall form a quorum for the disposal of business.
(b) If a member of the committee fails to attend three
consecutive meetings without being excused thereon, or
otherwise fails to perform his/her duties, the position may
 be declared vacant and filled as provided for in these by-
laws.
39. RECORD OF BUSINESS OF THE MANAGEMENT COMMITTEE
All business discussed or decided at the Committee Meeting shall
be recorded without erasures and corrections in a Minute Book,
which within one week of the meeting, shall be signed by the
Chairman of the meeting and at least one other committee
member who was present at the meeting, to indicate that in their
opinion the minutes are a true and complete record of all matters
discussed or decided at the meeting.
At the next meeting, after approving any alterations or
variations, which shall be written immediately below the above
signatures and not as alterations to the original record, the
meeting shall, by resolution, authorize its Chairman to sign and
date the final record.
40. DUTIES AND POWERS OF THE MANAGEMENT COMMITTEE
The Committee of the society shall subject to any directions from
the General Meeting generally direct the affairs of the society. Its
procedures, powers and duties shall be as prescribed by the Act,
Rules and these by-laws. In particular, it shall:
a) Observe in all its transactions the Act, the Rules, these by-
laws and prudent business practices.
b) Act upon all applications for membership.
c) Make provision for sufficient funds for loans.
d) Ensure that true and accurate records and accounts of the
society’s money, properties, capital reserves, liabilities,
income and expenditure are kept and maintained;
e) Prepare and develop long term management plans and
budgets for presentation at the General Meeting;
f) Propose to the General Meeting the amount and kind of surety
bond, or other security, which shall be given by the member
of the committee or employee having custody of or handling
funds or property of the society;
g) Determine and recommend to the General Meeting the
interest rates on loans, the maximum maturities and terms of
payment or amortization of loans from time to time and the
maximum amount that may be loaned with or without security
to any member;
h) Cause the audited accounts to be displayed in a conspicuous
place at its registered office and branches at least two weeks
before presentation of accounts to its members at the general
meeting;
i) Lay before the General Meeting audited accounts, together
with proposals for the disposal of net surplus, if any;
j) Recommend to the General Meeting the dividend rate to be
paid on shares, if any, and interest to be paid on deposits;
k) Fill through co–option, vacancies occurring in the committee
between General Meetings;
l) Recommend investments of the society;
 m) Authorize the conveyance of properties;
n) Authorize borrowing and lending operations of the society in
accordance to the Act and the Rules;
o) Designate a depository or depositories for the funds of the
society;
p) Employ and fix the remuneration of the employees in
accordance with the terms and conditions of service as
approved by the Commissioner;
q) Impose fines as provided for under these by-laws;
r) Approve transfer of shares;
s) Supervise the recovery and collection of loans from members
and recommend to the General Meeting the write off of bad
debts.
t) Perform or authorize any actions consistent with the Act, the
Rules and these by-laws, unless specifically reserved for the
General Meeting;
u) Provide adequate budget for education and training of
members, the committee and staff; and
v) Perform such other duties as the General meeting may from
time to time direct.
41. EXPENDITURE
No expenditure shall be authorized by the Committee unless it is
provided for in the estimates formally approved by the General
Meeting.
42. DELEGATION TO EMPLOYEES
a) The Committee may delegate to any employee of the society
such duties as it deems fit.
b) Nothing in (a) above shall absolve the Committee from its
responsibility of running the affairs of the society in a proper
and businesslike manner
43. INDEMNITY
All Committee Members shall each provide an indemnity of an
amount approved by the General Meeting. A duly completed
Form V in the schedule to the Rules shall be lodged with the
Commissioner within 14 days upon election to the committee.
44. DECLARATION OF WEALTH
Every committee members shall within 30 days of being elected
declare wealth to the Commissioner in the prescribed manner.
45. LEGAL STANDARD OF CARE
In the conduct of the affairs of the society, the members of
Committee shall exercise the prudence and diligence of ordinary
men of business and shall be held jointly and severally liable for
any losses sustained through any of their acts, or failure to act,
which are contrary to the Act, the Rules, the By-laws or the
directions of the General Meeting.
46. SUSPENSION FROM THE MANAGEMENT COMMITTEE
a) The Commissioner may suspend from duty any Committee
Member charged in a court of law with an offence involving
fraud or dishonesty pending the determination of the matter.
 b) The majority of the Committee Members may suspend a
Committee Member for;
(i) Failure to disclose vested interests.
(ii) Any other good cause.

Subject to ratification by the General Meeting.

47. REMOVAL FROM THE MANAGEMENT COMMITTEE
A member of the Committee shall cease to hold office if he/she:
a) Ceases to hold qualifications of a Committee Member as
specified in the Act, Rules and these By–laws;
b) Is removed by the Commissioner under the provisions of the
Act;
c) Is voted out by two-thirds majority of the society members
present and voting at the General Meeting.
48. EXECUTIVE OFFICERS
The Chairman, the Vice-Chairman, the Treasurer and the
Honorary Secretary shall be termed as the “Executive Officers of
the Society” and shall be elected at a meeting of the Committee
held within seven days after election at the General Meeting.
49. THE CHAIRMAN
The Chairman shall:
a) Preside at general meetings, Committee meetings and joint
meetings with the Supervisory Committee.
b) Perform such other duties as directed by the Committee, not
inconsistent with provisions of the Act, the Rules and these
by-laws;
50. THE VICE-CHAIRMAN
The Vice-Chairman shall perform:-
a) The duties of the Chairman during his/her absence.
b) Such other duties as directed by the Committee.
51. HONORARY SECRETARY
The duties of the Honorary Secretary are to:
a) Cause minutes of the General Meetings, Committee meetings,
and joint meetings with the Supervisory Committee to be
recorded.
b) Ensure that notices of the meetings are prepared and sent
out.
c) Ensure that the society’s correspondence is promptly and
correctly attended to.
d) Perform such other duties as may be directed by the
committee.
52. TREASURER
The duties of the Treasurer shall be to:
a) Generally manage or cause to be managed the financial
affairs of the society in a competent manner;
b) Ensure that a proper record is kept of all monies received and
paid out by the society, its assets, liabilities, capital reserve
and its income and expenses;
 c) Ensure the safekeeping of the society money, securities and
books of accounts;
d) Ensure that all payments and expenditures are dully
authorized;
e) Ensure that within ten days after the closure of each month, a
financial statement showing the condition of the society’s
finances at the end of the preceding month is prepared and
submitted to the Committee for discussion; and
f) Ensure compliance with all directions of the Committee, the
Act, the Rules and these by-laws on all financial matters.
g) Cause to be presented, a statement of the ensuing month’s
cash flow.
h) Ensure sufficient funds are available for loans.
i) Perform such other duties as may be directed by the
committee.
53. SUB-COMMITTEES
a) Sub-committees shall consist of persons drawn from the
committee.
b) The Committee may delegate to the sub-committee some of
its duties under these by-laws as it deems fit.
c) These sub-committees shall convene as directed by the
Committee.
54. EDUCATION SUB COMMITTEE
The Education Sub-Committee shall consist of three members
including the Vice-Chairman who shall serve as its Chairman. Its
duties shall be to:
a. Organize education programmes for members, committee
members, staff and the general public.
b. Ensure that both the Committee members and the staff are
well trained and prepared for the tasks they are entrusted
with at the society.
c. Create co-operative awareness to the general public.
55. TENDER SUB COMMITTEE
The tender Sub-committee shall consist of three members of the
Committee and any other officer(s).
56. CREDIT SUB COMMITTEE
The credit Sub-committee shall consist of three members of
the committee, none of whom shall be an Executive officer. Its
duties shall be to:
a) Hold regular meetings as the business of the society may
require, but at least once a month
b) Vet loan applicants and their guarantors and their ability to
service their credit requirements.
c) Assist members solve their financial problems.
d) Maintain records of their deliberations on loans.
e) Forward its loan recommendations to the committee for
approval.
57. SUPERVISORY COMMITTEE
 (a) The society shall have a supervisory committee consisting of
three members each elected at the General Meeting for a
period of three years and one member of the supervisory
committee shall retire annually. No person who has been in
the committee within two (2) years preceding the date of the
anticipated election shall be eligible for membership of the
supervisory committee.
(b) The supervisory committee shall:
i. Hold quarterly meetings save for joint meetings with
the committee.
ii. Have qualifications similar to those of committee
members.
iii. Be required to have knowledge of accounts.
iv. Be removed by a resolution of the general meeting.
58. DUTIES OF THE SUPERVISORY COMMITTEE
58.1 The duties of the supervisory committee shall include:
(a) Counterchecking, the effectiveness of the society’s internal
control systems through:-
i. Carrying out investigations as may be necessary for the
wellbeing of society and members in general and
verifying the accuracy of the transactions of the society.
ii. Checking if cash and bank accounts are reconciled in
good time.
iii. Establishing whether the management of the society use
managerial tools i.e. budgets, trial balances, economic
reports, long term plans and others and thereafter
making necessary recommendations to the committee.
(b) Preparation and presentation of periodic reports to the
Committee during joint meetings.
(c) Presentation of Annual Report to the General Meeting.
(d)Submission of its reports to the Commissioner.
58.2. The supervisory committee shall not perform the duties or
exercise any of the powers of the committee.
58.3 The supervisory committee shall be held liable for any loss
incurred due to their negligence in performing their duties.
59. THE MANAGER
The Manager shall conduct the business of the society subject to
overall control of the committee.
60. DUTIES OF THE MANAGER
The manager shall;
(i) Advise the Committee and other Committees in
formulating, preparing and implementing long term policies
and programmes of the Society.
(ii) Supervise the work of all staff and ensure that the business
of the Society is conducted in a proper manner.
(iii) Ensure that proper books of accounts, records and returns
are kept and that regular financial, statistical and
operational information is prepared and submitted to the
 Committee and other Committees and also to the
Commissioner.
(iv) Be responsible for the security of the funds and assets of
the Society.
(v) Ensure that all statutory deductions such as National Social
Security Fund (NSSF), National Hospital Insurance Fund
(NHIF), Pay As You Earn (P.A.Y.E.) etc. are correctly
calculated and that all the amounts due and the necessary
returns are submitted by the due date.
(vi) Ensure that rent, rates, levies and debts due from and to
the Society are paid by the due date.
(vii) Recommend to the Committee the filling of any vacant
position or dismissal of any staff member who is not
performing his/her duties properly.
(viii) Countersign the society’s cheques, contracts and other
documents.
(ix) Attend general and committee meetings as an ex-official.
(x) Perform such other duties as may be assigned to him by the
Committee.
61. BOOKS OF ACCOUNTS AND RECORDS
The society shall keep up to date and in a proper businesslike
manner such books of accounts and records as stipulated in the
Act, the Rules, and in particular:-
a) A register of members showing in respect of each member:
i. Name, age, date of application for membership,
address and occupation;
ii. Date of admission to membership;
iii. Date of cessations of membership,
iv. Name and particulars of nominees, and
v. Any other information as may be required by the
society from time to time.
b) Minute books giving details of proceedings of Committee, joint
Management and Supervisory Committee, Supervisory
Committee meetings and all other committee meetings held
in accordance with these by-laws.
c) Minute book giving details of proceedings at the General
Meetings.
d) A cashbook showing the details of all monies received or paid
out by the Society.
e) A general ledger containing such accounts as is necessary to
reflect the business of the Society.
f) A personal ledger for each member showing his/her
transactions with the society.
g) A register of assets and property.
h) A register of loans showing in respect of each loan; the loan
number, name of the borrower, the amount borrowed, the
purpose of the loan, the due date of repayments and the date
repayments are completed.
 i) Such other books and records as the committee may decide
or that the Commissioner may prescribe
62. REGULATIONS
a) The Committee may make such regulations, not inconsistent
with these by-laws, as they deem necessary for the conduct of
the society’s business. The regulations shall be recorded in
the minute book and posted on the society’s notice board and
shall come into force when and as determined by the
committee.
b) The society shall formulate a code of conduct for good
governance.
63. AUTHORIZATION TO SIGN DOCUMENTS
a) All documents, contracts and cheques shall be signed on behalf
of the society by any three of the following:
i. Chairman;
ii. Vice Chairman;
iii. Secretary; and
iv. Treasurer
b) The manager shall countersign all the documents.
c) The Committee may authorize any other officer to sign the
society’s documents.
64. FINANCIAL YEAR
The financial year of the society shall be from 1 st January to 31st
December.
65. DISPOSAL OF SURPLUS FUNDS
Subject to the Act and Rules, the net surplus resulting from
operations of the society during any financial year shall be
disposed of as follows:
a) 20% (1/5) shall be credited to the Reserve Fund.
b) The balance may be disposed off as decided by the General
Meeting for:
(i) Paying dividends and interest on shares and deposits.
(ii) Being forwarded to Education Fund or any other fund of the
society including the appropriations.
(iii) Paying honorarium to Committee Members.
(iv) In any other way approved by the General
Meeting.
66. LOANS
(a) The society shall have a loan policy approved by the
General meeting.
(b) All loans shall be approved by the committee.
(c) Loans shall only be given for worthy purposes that benefit
the borrower.
(d) The rate of interest on loans shall be determined by the
General Meeting on recommendation by the Committee.
67. APPLICATION FOR LOANS
(a) All loans shall be applied for on forms provided by the
society.
 (b) The loan application in each case shall set forth the
amount applied for, the purpose for which the loan is
desired, the terms of repayment, the security if any, and
such other information as the Committee may require.
(c) All applications for loans and reports thereon shall be filed
as permanent records of the society.
68. LOAN GRANTING
a) Loans shall be granted by the committee in respect to the credit
limit approved by the general meeting.
b) No loan shall be granted except for a specified and approved
purpose, for a definite period and at a fixed rate of interest.
c) No loan shall be made to any member in excess of 5% of the
society’s total share capital and reserves.
d) Loans shall be granted to Executive Officers, employees of the
society who are members only if:
(i) The loan is in accordance with these by-laws and is not
on terms more favorable than those extended to other
borrowers.
(ii) The loan is approved by the Credit committee and
thereafter by the Committee.
(iii) The applicant takes no part in the consideration of his
application at either the Credit or Committee Meeting.
69. SECURITY FOR LOANS
The Credit Committee shall require the member to give the
following securities for loans:
a) The deposits of a member
b) The deposits of guarantor(s)
c) Any other collateral as it may consider necessary.
Provided that;
(i) The committee shall not accept as guarantor, a
member who has taken a loan and has already
guaranteed three loans.
(ii) No member of the Management and Supervisory
Committee member shall act as endorser or
guarantor for borrowers from the Society.
(iii) A borrower may apply to the Committee for change
of guarantors.
70. REPAYMENT OF LOANS
a) Loans shall be repaid according to the terms in the loan
application form. However, a borrower may, on any day on
which the Society is open for business, repay his loan in whole
or in part prior to its maturity, subject to approval of the
Committee.
b) Any request for an extension of time in which to pay, shall be
accepted by the Committee only in exceptional
circumstances; provided such extension shall not result in
financial losses to the society. Any extension so granted shall
be treated as a new loan and an extension agreement shall be
executed and signed.
71. RE-FINANCING OF LOANS
a) Notice shall be given to all members when the society has the
capacity to re-finance loans.
b) The re-financing of loans shall be allowed by the Committee
only when the society has satisfied all loan demands and has
sufficient funds.
c) The re-financed loan shall be treated as a new-loan, and
subjected to the normal loan approval procedures.
72. LOANS AS AN ITEM OF THE AGENDA
a) At every committee meeting the item “loans” shall appear on
the agenda and the Credit Committee shall present a list of
loans recommended for approval.
b) In the meeting, the Treasurer will present an up-to-date list of
delinquent borrowers showing; -
i. Name of borrower.
ii. Account number.
iii. Date of loan
iv. Unpaid loan balance.
v. Borrower’s deposit balance.
vi. Number of months the loan has been defaulted.
vii. Security and guarantor/s.
c) The committee shall take action to collect the overdue loans
as follows;
i. Any loan overdue for payment for more than three
months shall be referred to the guarantor/guarantors
provided that the society shall give notice of such
intention to the borrower and guarantor/s.
ii. Any disputed loan shall be referred to the Tribunal
provided that the society shall give a written notice to
the borrower on its intention to do so.
iii. Submit names of defaulters to Credit Reference
Bureau (CRB) upon issuance of notice of intention to
do so.
d) The Committee shall make a full report on loans to the
General Meeting.
73. CASH RESERVE
Except as otherwise authorized by the General Meeting and
approved by the Commissioner, a cash reserve shall be
maintained of not less than 10% of total capital for the specific
purpose of meeting requests for deposits, withdrawals and other
emergency pay-outs. The cash reserve may consist of cash in
hand, the balance in the current and savings accounts, and fixed
deposits.
74. COMMON SEAL
(a) The society shall adopt and use a common seal. The seal
shall have an imprint bearing the words “seal of
KAPKATET SAVINGS AND CREDIT CO-OPERATIVE
 SOCIETY LIMITED” which shall be different from the
ordinary name-stamp of the society

(b) The seal shall be kept securely under key and lock by the
Manager and be used only in the presence of the officers
authorized to sign documents on behalf of the Society.
75. FINES
For any breach of these by-laws or lawful instructions issued by
the Committee and General Meeting, or his obligations on time,
the member shall be fined an amount not exceeding Kshs.20,
000.00.
76. DISPUTES
If any dispute concerning the business of the society arises: -
a) Among members, past members and persons claiming
through members, past members and deceased members;
or
b) Between members, past members or deceased members,
and the society, its committee or any officer of the society;
or
c) Between the society and any other co–operative society;

Which cannot be determined by the Committee or General

Meeting, or Alternative Dispute Resolution mechanism (ADR)
shall be referred to the Tribunal. Appeals shall be taken to the
High Court.
77. MISCELLANEOUS
a) No management or Supervisory Committee member shall
receive from the society any payment apart from sitting
allowance, and travelling and subsistence allowance, except
an honorarium from the net surplus as allowed in these by-
laws.
b) The Management and supervisory committee members, and
employees of the society shall hold in the strictest confidence
all transactions of the society with its members.
c) When any Committee member is disqualified or unable to
perform his duties, the committee shall co-opt a member or
members of the society to serve on the committee until the
next general meeting if the number falls below five.
d) The society shall pay an audit and supervision fee of such
sums as may be required by the Commissioner.
e) No member of the management or supervisory committee
shall in any manner participate in the deliberations and
determination of any question affecting his financial interest.
In the event of any disqualification, the remaining qualified
committee members present at the meeting, if constituting a
quorum may exercise, with respect to the matter, all powers
of the committee.
 f) A copy of these by-laws shall be furnished to every member
who joins the society or on request upon payment of a fee not
exceeding its actual cost to the society. Preposition
78. INSPECTION OF DOCUMENTS
a) All books of accounts and other records shall at all times be
available for inspection by all members of the management and
supervisory committee of the society, and to the Commissioner.
b) The by-laws of the society and the registration certificate shall
at all times be available for inspection by the Commissioner
and the members.
c) A list of members excluding details of nominees and
shareholdings or loans shall be available for inspection by any
member and any other stakeholder upon payment of the
prescribed fee.
79. DISSOLUTION
The society shall be dissolved in accordance with the procedures
set forth in the Act and Rules.
80. AMENDMENT OF BY-LAWS
These by-laws shall be amended in accordance with the Act and
the Rules but no amendment shall become effective until it is
approved and registered by the Commissioner.

81. ACCEPTANCE
We the undersigned Executive officers of KAPKATET SAVINGS AND
CREDIT CO-OPERATIVE SOCIETY LIMITED named herein do hereby
accept and receive these by-laws for and on behalf of the cooperative.

TITLE NAME ID NO. SIGNATUR

E
CHAIRPERSON WESLY LANGAT 7638820 ………………

VICE JONATHAN 10383453 ………………

CHAIRPERSON KOECH

HON EMMACULATE 31451464 ………………

SECRETARY CHEPKORIR

TREASURER DAVID TONUI 11560936 ………………

OFFICIAL CERTIFICATION

I CERTIFY that the foregoing by-laws of KAPKATET SAVINGS AND

CREDIT CO-OPERATIVE SOCIETY LIMITED have been approved and
duly registered.

Given under my hand at Nairobi this.......................... Day

of ..............................20…………….

………………………………………………………………………………………………
…….

………………………………………………………………………………………………
…..…

COMMISSIONER FOR CO-OPERATIVE DEVELOPMENT

ECONOMIC APPRAISAL REPORT OF KAPKATET SAVINGS AND

CREDIT CO-OPERATIVE SOCIETY LTD
1. Name
The proposed Co-operative Society shall be called KAPKATET
SAVINGS AND CREDIT COOOPERATIVE SOCIETY LIMITED
and that it’s area of operation shall be KAPKATET WARD,
BURETI SUB COUNTY of KERICHO COUNTY.
2. Membership
At the moment there are 20 members willing to join the society.
3. Objective(s)
The proposed Co-operative Society main economic activity shall
be raising savings and issuing credit services to its members. It
 shall also do all other things to complement its members with an
aim of improving income and standard of living of the said
members.
4. Society funds
i. Entrance fees……………….20× @ 500/=
=10,000.00/=
ii. Share capital………………..20× @1,000/=
=20,000.00/=
Total own funds for 1st financial year (minimum) is
=30,000.00/=
Hence the society’s operation budget for the first year of
operation shall be
Income
Entrance fees………………..20×@ 500.00 =
10,000.00/=
Interest on loan to members
=250,000.00/=
Interest from bank
=100,000.00/=
Sundry Income =50,000.00/=

Total income
=410,000.00 /=
Less expenditure
Salaries and wages
=60,000.00/=
Committee allowance =
50,000.00/=
Audit fee =
30,000.00/=
Post and telephone =
10,000.00/=
Printing and stationeries
=15,000.00/=
Sundry expenses
=20,000.00/=

Total Expenses
=185,000.00
Surplus
= 225,000.00/=

By

Dorine Chepkemoi
County Co-operative Officer
Kericho County
SUPPLEMENTARY INFORMATION IN RESPECT OF APPLICATION
AND REGISTRATION OF CO-OPERATIVE SOCIETIES.

1. Proposed society’s name KAPKATET SAVINGS AND CREDIT

Co-operative Society limited.

2. Area of operation……….KAPKATET WARD, BURETI SUB COUNTY

Situation of society’s office…..N/A
Section of town…N/A
Building……N/A
Floor……N/A
Office Number…..N/A
Street………N/A
Road………………N/A

3. Contact persons
Name: ID No.
Telephone No.

1. WESLY LANGAT – 7638820 - 0723897582

2. JONATHAN KOECH – 10383453 -0719372955
3. EMMACULATE CHEPKORIR – 31451464 -
0722289442
4. DAVID TONUI – 11560936 -0714151746

4. (a) Has the formation of the proposed society been discussed

with any higher senior officer of the employer (in case of an
employer-based Sacco society)? (YES/NO)
(b) If so, provide the name and the position of the person
contacted…………………………………N/A………………………………
(c) Is such person in favor of the registration of the society? (YES/NO)
(d) Has the employer agreed to give check off system? (YES/NO)
(Please attach a letter to that effect)
5. Has mode of payment of contributions by members to the
society been discussed with the potential members (in case of
other societies)? (YES/NO).

6. Are the prospective members capable of managing and

operating the society successfully? (YES/NO)
7. Does the organizer/promoter believe the society will be
successful and does he/she recommend registration? (YES/NO)

8. Has interim office bearers and potential members been given

instruction? (YES/NO)
By whom?
a. Name of Co-op Officer…………DORINE CHEPKEMOI
………………
b. Title ……………………………
SCCO……………………………………………………………..
c. Tel
Number………………………………………………………………
………………….
d. Signature of the
Officer…………………………………………………………………
.
Official affirmation.
I affirm that I have fully carried out the above investigation and all the
questions have been answered correctly.

Name of the registration officer/DCO……DORINE CHEPKEMOI

…………………….
Tel: ...............................................
Signature……………………….
Date …………………………….