Qwetu Sacco, one of the leading deposit-taking Savings and Credit Co-operative Societies (Saccos) in Kenya, has a rich history that spans decades. Established in 1968 by a group of 200 teachers, the Sacco was officially registered in 1976. These visionary founders pooled their resources to enhance their financial independence, helping them grow both economically and socially. Over the years, Qwetu Sacco has evolved, introducing its Front Office Service Activity (FOSA) in 2000 and micro-credit services in 2003. Today, with an asset base of Kshs 3.22 billion, it is a testament to the success of its members and its mission.
Qwetu Sacco Membership Eligibility
Qwetu Sacco operates on a common bond principle, but membership is open to a wide range of individuals and institutions. Initially, its focus was primarily on teachers in Taita Taveta County, but it has since grown to include a broader membership base, including government employees, business owners, and other professionals.
In short, anyone can become a member of Qwetu Sacco, provided they meet the necessary requirements.
Qwetu Sacco Membership Requirements
Becoming a member of Qwetu Sacco involves several steps and financial contributions. These requirements ensure that members are invested in the Sacco and benefit from its wide range of financial services.
1. FOSA Account
- Every potential member must open and operate a FOSA account with a minimum balance of Kshs 1,000. The FOSA account acts as the member’s main operational account within the Sacco.
2. Membership Fee
- New members are required to pay a one-time membership fee of Kshs 500. This fee is non-refundable and helps to cover administrative costs for onboarding new members.
3. Share Capital Contribution
- Each member must contribute a minimum of Kshs 15,000 towards share capital. This share capital represents ownership in the Sacco and forms part of the member’s equity in the institution.
4. Monthly Contributions
- Members are required to make consistent monthly contributions to their long-term deposits. These deposits act as a form of savings and are used to determine the amount a member can borrow in the future.
5. Member Protection Scheme (MPS)
- To ensure financial security, members contribute Kshs 200 monthly to the Member Protection Scheme (MPS). This scheme safeguards members by clearing outstanding loans and providing benefits to next of kin in the event of death or incapacitation.
6. Risk and Retirement Fund (RRF)
- In addition to the MPS, members contribute Kshs 200 monthly to the Risk and Retirement Fund (RRF). This fund provides benefits upon a member’s retirement or death.
7. Patronage of Sacco Products
- Members are also encouraged to patronize Qwetu Sacco’s wide array of financial products and services, including loans, savings accounts, and investment products. Active participation enhances their financial growth and strengthens the Sacco’s financial base.
Qwetu Sacco Members’ Welfare
Qwetu Sacco places great importance on the welfare of its members through the Member Protection Scheme (MPS) and the Risk and Retirement Fund (RRF). These schemes provide peace of mind for members and their families, ensuring financial stability in case of unfortunate events such as death, incapacitation, or retirement.
1. Member Protection Scheme (MPS)
The MPS is designed to protect members and their families by covering outstanding loans and providing financial support.
- Loan Clearance: If a member passes away or is permanently incapacitated, any loans they have with the Sacco are fully cleared.
- BOSA Deposits: The next of kin receives double the member’s BOSA deposits upon the member’s demise.
- Funeral Assistance: A funeral rider of Kshs 50,000 is provided to the next of kin in case of a member’s death.
2. Risk and Retirement Fund (RRF)
The RRF provides retirement benefits and financial support to the family of deceased members.
- Retirement Benefits: Upon retirement, a member receives a token of Kshs 28,500.
- Consolation for Spouses: In the event of a spouse’s death, the member receives a consolation payment of Kshs 7,500.
- Demise of a Member: If a member passes away, their next of kin is consoled with Kshs 56,500.
How to Benefit from Qwetu Sacco Welfare Schemes
To start benefiting from the Sacco’s welfare schemes, a member must:
- Be an active contributor for at least six months.
- Keep their contributions for MPS and RRF up to date.
- Appoint and update their nominees regularly to ensure smooth benefit distribution in case of any eventuality.
For MPS claims, beneficiaries must provide a certificate of death or proof of total incapacitation. For RRF claims, a retirement letter or death notification along with proof of relationship to the member is required.
Qwetu Sacco Contacts
For those interested in becoming a member or seeking more information, you can reach Qwetu Sacco through the following contacts:
- Head Office: Tatecoh Building, Wundanyi Town, Taita Taveta County
- Phone: +254 728 957 585 / +254 728 536 169
- Email: info@qwetusacco.com
With a solid financial base and a wide range of products and services, Qwetu Sacco continues to play a pivotal role in enhancing the financial well-being of its members. By offering protection schemes, affordable loan products, and long-term savings solutions, Qwetu Sacco ensures that members not only achieve their financial goals but also have a safety net for the future.
