HAZINA SACCO SOCIETY LTD

2024 ANNUAL DELEGATES MEETING RESOLUTIONS

PART A: SUMMARY OF RESOLUTIONS MADE AT THE ADM HELD ON 17TH

FEBRUARY, 2024

1. SURPLUS DISTRIBUTION
a) Dividends to be distributed at the rate of 17% on the paid-up Share Capital as at
31st December 2023.
b) Interest refund to be made to members at the rate of 10.8% on deposits as at 31st
December 2023 on pro-rata basis.
c) Payment of dividends and interest rebates on shares and deposits to be made
through FOSA savings account by 19th February, 2024.
d) The approved Honorarium to the Board of Directors, Supervisory Committee
members, branch and sub branch officials to be KES 9,700,000.

2. ADVANCE INTEREST REFUND ON DEPOSITS

Members may apply for advance interest on deposits as may be approved by the Board of
Directors. Such payments will be reviewed and be made between July and one (1) week
before the ADM is held every year.

The amount payable will not exceed half of the interest on deposits earned as at 30th June
of the previous financial year and will attract a 10% interest charge.
Effective 1st July, 2024.

3. LOAN PRODUCTS

BACK OFFICE (BOSA) LOANS

a) SUPER LOAN
• Minimum Super Loan to remain Kshs. 1 million.
• Repayment period to remain 96 months.
• Interest on Super loan to remain 1.15% per month on reducing balance.
• Top up to be allowed after having repaid at least 15% of the previous loan.
• An interest charge of 7% on outstanding balance will apply.
• Loan multiplier to be increased from 5 times to 6 times on deposits.
Effective 1st March 2024.

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 b) NORMAL LOANS
• The loan multiplier for first time and existing loanees to be increased from 4.5
times to 5 times member deposits.
• Repayment period for Normal Loans to remain at 84 months.
Effective 1st March 2024.

FRONT OFFICE (FOSA) LOANS

a) HSF SPECIAL ADVANCE

• Maximum HSF Special Advance loan to remain 600,000/-
• Repayment period to increase from 30 months to 36 months
• Interest to remain at 1.15% p.m. on reducing balance
Effective 1st March 2024.

b) HSF OKOA ADVANCE

• Maximum HSF Okoa Advance to increase from KES. 300,000/- to KES. 400,000/-
• Repayment period to remain at 18 months.
• Interest rate to remain at 1.1% p.m. on reducing loan balance.
Effective 1st March 2024.

MOBILE LOANS
FLASH ADVANCE LOAN
• Repayment period to remain 4 months.
• The maximum amount to be increased from KES. 45,000/- to KES. 50,000/-
• Maximum loan to be subject to 30% of deposits held by the member.
• The first application limit to be increased to 10,000/-
• Interest rate to be charged on a graduated scale based on the loaning period as
below:
1 month - 5%
2 months - 6%
3 months - 8%
4 months - 10%
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Effective 1 March 2024.

4. SHARE CAPITAL
All members to maintain a minimum Share Capital of KES 16,000/-. In case of need to
increase the amount, the Board will advise members through a new resolution.

New members will be expected to achieve the required minimum within the first 12
months of membership.

Note: No member shall hold more than 1/5 of the total shares of the Society.

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5. GOVERNANCE
A member who wants to be in leadership position in the Sacco should have the following
deposit contributions;

Category Current requirement (KES)

Delegate Minimum deposits to increase from 200,000/- to 250,000/-
Branch official Minimum deposits to increase from 250,000/- to 312,000/-
Board of Directors & Minimum deposits to increase from 700,000/- to 900,000/-
Supervisory Committee
Members

All delegates must have their salaries processed through FOSA except for Private delegates.
Effective 1st September 2024

NOTES
i. A delegate, branch official, Supervisory Committee member or Board member must
have been a member of the Sacco for two years and with a good loan repayment
history.
ii. Any delegate, branch official, Supervisory Committee member or Board member
found not to be compliant will be given four (4) months to comply. Failure to which
they will be recalled.
iii. If there is a loan default by a branch official, member of Supervisory Committee or
member of the Board, the mandatory three (3) months’ notice will be given then all
deposits will be applied at once to clear the amount in default and the balance(s) if
any attached to guarantors.

6. INVESTMENT OF SURPLUS FUNDS

In line with By-Law No. 5.3, the Society in conduct of its business to identify secure,
stable and licensed partners including Commercial Banks where surplus funds can be
invested as term deposits.

7. LOAN WRITE-OFFS
The Sacco to write-off KES 2,126,521.56 affecting five (5) default cases as presented
during the 40th ADM.

PART B: OTHER POLICY MATTERS THAT REMAIN AS RESOLVED IN ADMs

FOR THE PREVIOUS YEARS.

8. DIVIDEND AND INTEREST REFUND CAPITALIZATION

a) Bonus to be paid to members who opt to capitalize their dividends / interest refund on
deposits on the amount payable as follows:
i. 100% of dividend amount at 8% of interest on dividends
ii. 75% of dividend amount at 6% of interest on dividends
iii. 50% of dividend amount at 4% of interest on dividends
iv. 25% of dividend amount at 2% of interest on dividends
b) Request to capitalize dividends and interest refund should be received by the Society
within two (2) months after surplus distribution has been declared.

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 c) Amounts capitalized will be eligible for loaning purposes immediately.
Effective 19th February, 2023.

9. CONSIDERATION FOR INTEREST REFUND ON DEPOSITS

For a member to be considered for interest refund on deposits, he/she should have
remained a member up to 30th June of the financial year.

10. ENTRANCE FEES

a) New Members
Entrance fees for new members to remain KES. 1000.00.

b) Re-joining Members
• Rejoining fees for individual members to remain KES. 2,000.00
• There is no waiting period before re-joining.
• Waiting period for rejoining members to get a loan to remain 3 months
Effective 1st March, 2023.

11. WAITING PERIOD BEFORE GETTING A LOAN

New members will be required to contribute for 4 months while re-joining members will
be required to contribute for 3 months before they can be loaned except for those on
contract terms (salaried/check off system) who will be considered after 1 month for Jibu
Loan subject to the terms and conditions.
Resolution Date: ADM 2021.

12. NEW MEMBERS RECRUITMENT TOKEN

The token for recruitment of individual members to remain KES. 400/-.
Effective 1st April, 2021.

13. MONTHLY DEPOSITS

Minimum monthly deposits to remain at KES. 1,000/- or 5% of a member’s basic salary,
whichever is higher.

14. DEPOSITS FOR PRIVATE MEMBERS

Any contribution above KES. 50,000/- when requesting for loan will be considered as
boosting of deposits unless there is proof of consistent deposits of amounts greater than
KES. 50,000/- over a period of more than one month.
Effective 1st March, 2023.

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15. BENEVOLENT (WELFARE) FUND
The benevolent fund contribution to remain KES. 200/- and the benefits to be maintained
as below:
Member KES. 100,000/-
Spouse (only one) KES. 75,000/- per year per member.
Child (Maximum 2) KES. 50,000/- per year per member.
Biological Parent KES. 30,000/-
Note: Each member to be considered independently in cases where member and
spouse are members.
Effective 1st July 2021.

Notes
a) Children are considered from the date of notification of live birth to 25 years of
age.
b) Death certificate(s) should follow within one month after death notification,
failure to which, the payment will be deducted from the member’s deposits or
salary.
c) A member becomes eligible to this claim after 6 months’ contribution.
d) If a member is found to have defrauded the Sacco on any welfare claim, the
amount paid will be deducted from the member’s deposits or any other payment
due. The member will in addition be required to pay a penalty of KES. 50,000/-
e) On withdrawal from the Sacco, any member who has not made any claim from the
welfare shall be refunded 50% of total amount they have contributed to welfare.
f) Each member is expected to forward names and supporting documents of the
beneficiaries (spouse, children and biological parents) to the office for record
purposes, and should be updated as/when necessary. Claims for loss of biological
parents must be accompanied by the members’ copy of birth certificate and
employer/ delegate’s confirmation letter.

16. LENDING POLICY

MAXIMUM NORMAL LOAN
Maximum loan for individual members to remain at KES. 30 million.

BACK OFFICE (BOSA) LOANS

a) TOP- UP NORMAL LOANS

• No waiting period when applying for top-up loans.
• Top-up charges should not be more than the net take home.
• The interest on early redemption to remain 7% of the total loans outstanding,
payable only once.

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 • The outstanding loan(s) and interest will be deducted from the total loan
requested.
Effective 1st March, 2023.

b) TOP-UP LOAN AFTER TOP-UP

A member will be required to have repaid the Top-up Loan for at least eight (8)
months or repaid 11% of the previous loan granted before being advanced another
Top-up Loan. The interest on early redemption to remain 7% of the total loans
outstanding, payable only once.
Effective 1st March, 2023.

c) EMERGENCY LOANS – (Emergency, School Fees and College Fees)

All emergency loans shall be advanced subject to member's ability to pay without
any limits. Repayment period for general emergency loans to remain 18 months.
Effective 1st March 2023.

d) TOP UP ON EMERGENCY LOANS

These are loans granted for the purpose of clearing other existing emergency loans
or any one of the existing emergency loans and the loan is to be repaid within 18
months. Charge on emergency loan top up shall be 5% on the total amount being
cleared.
Resolution Date: ADM 2018.

e) DARAJA LOAN
BOSA product to assist members who have Normal Loan but do not qualify for
Emergency Loan due to the ability to pay:
• Within deposits multiplier (*5)
• Repayment period to remain 48 months
• Member qualifies for Top-up loan after repaying previous loan for 4 months or
11% of the previous loan.
• If member wishes to clear other emergency loans, an interest on early
redemption (top-up) of 5% shall be charged.
Effective 1st March, 2023.

f) JIBU LOAN
This a product for new members who are on check off but have not finished the
mandatory 4 months waiting period.
• For check off members only
• Deposit multiplier to remain 5 times
• Member qualifies after first contribution is remitted
• Maximum loan to remain KES. 300,000/-
• Hisa loan applies
• Repayment period to remain 24 months or within contract term
• Security- guarantors who have been members for at least 4 months.
Effective 1st April, 2021.

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 NOTES:
i. Interest on all BOSA loans will be charged monthly at 1% of the loan
outstanding on a reducing balance basis except for the Super Loan.
ii. Maximum of total loans should not exceed 5 times for both old and new
member’s deposits at any time except for the Super Loan.
iii. Penalty to be charged on accumulated interest for members who default
payment of their loans. Penalty to remain at 50% on the interest arrears.
Attachment of loans defaulted will be done immediately after issuance of the
second notice.
iv. Members clearing loans using other financial institutions to be charged 5%
from previous 4% of the amount being cleared.
v. Members applying for top-up loans but have the ability to continue paying the
outstanding Emergency/School fees/College fees loan to be allowed to
continue paying without clearing them.
vi. Cash boosting to deposits (savings) account, for members on the check-off
system, will not be eligible for loan purpose unless it has been in the Sacco for
at least one month. However, members who wish to utilize deposits that have
not qualified for loan purpose as explained above will be required to pay a
charge of 10% on the total amount deposited. This interest may be paid in
cash or be deducted from the loan advanced. (Cash boosting means payments
outside payroll and contribution more than 2/3 of basic salary).
vii. Loan is considered defaulted if not paid when due.
viii. Every loan defaulted for three months and above to be recovered from
deposits and any balance attached to guarantors.
Effective 1st March, 2023.

g) TECH LOAN
This is a new low interest loan product for acquisition of electronic products for all
members. The Sacco has partnered with telecommunication companies to offer
mobile phones, tablets and laptops to support our members though check-off.
• Loan limit: KES. 150,000/-
• Interest – 0.8% on a reducing balance
• Repayment period – 12 months
• Member benefits from the product once
• In case of default, loan is recovered from deposits with a penalty of 30%
upfront
Effective 1st April 2021.

FRONT OFFICE (FOSA) LOANS

a) KARIBU LOAN
• Maximum loan to remain at KES. 4 million.
• Repayment period to remain 54 months.
• Interest to remain 1.17% per month on reducing balance.
Effective 1st April, 2021.

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 b) HISA LOAN
• FOSA to continue to issue Hisa Loan to members who wish to boost their deposit
for the purpose of obtaining loan from the BOSA.
• The Hisa Loan limit to remain at KES. 500,000/-. The Board to exercise
discretion when discharging it.
• The interest payable on Hisa loan to remain 4%.

NB: Hisa Loan credited to member’s deposits will be considered as deposit boosting in
the BOSA and will be liable to an interest charge of 12%.
Effective 1st April 2020.

NOTES:

i. FOSA Loans top-up interest on early redemption to reduce remain 7% of the

total loans outstanding, payable only once. Effective 1st April, 2022.
ii. No charge on outstanding interest on Karibu Loan upon clearance of principal
loan amount by cash. Effective 1st September 2019
iii. HSF Salary in Advance is limited to member’s net pay. Advance is recoverable
within the month.
iv. All Hazina Sacco payments to members will be done through FOSA.

INSURANCE FOR LOANS

An interest of 0.5% to continue to be charged on the amount approved to supplement
insurance cost. The interest will be deducted upfront from the loan granted.

LOAN GUARANTORSHIP
• Both check off and private members to use their deposits up to 95% for
guarantorship.
• Check-off members can only self-guarantee if they have not guaranteed other
members.
• Private members can guarantee other private members as long as their deposits are
free. At all times loans guaranteed and taken should not exceed 95% of total deposits.
Effective 1st April 2020.

LOAN DISBURSEMENT BY WAY OF EFT.

Any loan processed through EFT to attract a charge of KES. 200. The Board may however,
consider review of the costs and mode of loan processing and payments from time to time.

NORMAL LOAN AFTER CASH PAYMENT

Members who clear their outstanding Normal loans by cash and apply for a new Normal
loan before the stipulated waiting period of 1 month will be required to pay a 5% interest on
outstanding Normal loan balance cleared in cash. The interest due may be paid in cash or
deducted from the loan requested according to the member’s wish.
Effective 1st March 2023.

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CASH PAYMENTS TO DEPOSITS ACCOUNT
Cash boosting to deposits (savings) account, for members on the check-off system, will not
be eligible for loan purpose unless it has been in the Sacco for one month. However,
members who wish to utilize deposits that have not qualified for loan purpose as explained
above will be required to pay a charge of 10% on the total amount deposited. This interest
may be paid in cash or be deducted from the loan advanced. (cash boosting means payments
outside payroll and contribution more than 2/3 of basic salary).
Effective 1st March 2023.

17. WITHDRAWAL CHARGES FOR MEMBERS NOT WILLING TO WAIT FOR 60

DAYS
Members who request to withdraw from the Sacco are expected to wait for sixty (60)
days for their accounts to be cleared and have their deposits refunded. Those who would
like to receive their refunds earlier than the sixty days will be charged 2.5% of the refund.
Effective June 2018.

GOVERNANCE

18. DELEGATES REPRESENTATION

Delegates representation to remain as follows:
i. Branches in arid areas to have at least 10 members to qualify for a delegate.
However, for arid areas with many members in a branch, one delegate will
represent 30 members.
ii. Nairobi area- one delegate to represent 60 members
iii. All other areas – one delegate to represent 50 members

19. DELEGATES TENURE OF OFFICE

Delegate’s tenure of office to be three years with effect from 2016.

NOTES:
i. Delegates’ representation will be continuously reviewed except where there are
major changes because of such factors as transfers, natural attrition, etc.
ii. Rotation for branch officials to apply so as to avoid any vacuum.
iii. A delegate who is transferred, retired or is moved from one unit/station to another,
will cease to be a representative of that unit/station either by resigning as a
delegate or by completing the current term (not exceeding one full year) after
which, he/she must not seek re-election in that unit/station.
iv. A delegate who withdraws from the Society and rejoins must relinquish their
position and seek fresh mandate during the next elections in line with the
regulations.
v. Any continuing delegate whose loan(s) falls into default will be given 3 months to
bring their loans up to date. In case of non-compliance, after the fourth (4) month
vi. it will be deemed that he/she vacated the position and elections for replacement
will be called in line with the regulations.

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 vii. A delegate in violation of good loan repayment status (as in v above), will be
barred from attending Society organized meetings/forums and any related
payments until he/she corrects the loan status.
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Effective 1 April, 2021.

20. ELECTION OF DELEGATES

Sacco to adopt online voting during election of delegates as one of the modes of elections.
Resolution Date: ADM 2022.

21. MAXIMUM BORROWING POWER

The Society’s maximum borrowing power to be pegged at not more that 8% of the total
members’ deposits down from 10%.
Effective 1st April, 2020.

22. TOKEN OF SERVICE

A token of appreciation to be given to members of the Board, Supervisory Committee and
Branch officials who cease to hold office, after serving for at least one term of three (3)
years. The officials must have observed all Sacco regulations during their tenure.
Resolution Date: ADM 2016.

23. SHARE CERTIFICATES

Members to be issued with share certificates for their shareholding as at 31st
December, 2016. Thereafter, updated certificates may be issued on demand where
applicable.
Resolution Date: ADM 2020.

OTHER POLICY MATTERS

24. VIRTUAL MEETINGS

The Society to consider virtual platforms for communication in addition to the traditional
options in transacting its official business.
Resolution Date: ADM 2021.

25. EDUCATION OF DELEGATES AND MEMBERS

i. Education to Delegates
Education to delegates to be conducted once every three (3) years unless need
arises.

ii. Education to Members

• Education to members to be conducted once every two (2) years unless need
arises.
• Education to be hybrid (physical and virtual).
Resolution Date: ADM 2022.

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26. KENYA SACCO CENTRAL LIQUIDITY AND SHARED SERVICES CO-
OPERATIVE SOCIETY LTD (THE SACCO CENTRAL)
Sacco to join and subscribe to the membership of the proposed Kenya Sacco Central
Liquidity and Shared Services Co-operative Society Ltd (The SACCO-Central).
Resolution Date: ADM 2022.

27. BUSINESS DIVERSIFICATION

In line with By-Law no. 5.3, the Society to incorporate Agency Business channels such
as Insurance, Banking and Mobile Money to its core business.
Resolution Date: ADM 2021.

28. ONLINE SIGNING OF PAYMENTS FROM THE SACCO ACCOUNT(S)

In line with By-Law no. 67, the Society to adopt online signing of payments from the
Sacco accounts by the designated Sacco account signatories.
Resolution Date: ADM 2021.

29. ADDITIONAL AGENDA ITEMS

ADM to adhere strictly to agenda as outlined in the Notice of Meeting. Any delegate who
has an item to be discussed in the ADM must notify the Hon. Secretary 10 days before
the date of the ADM to be listed as an A.O.B for discussion.
Resolution Date: ADM 2020.

EVANS M.O. KIBAGENDI DICKSON H. OKUNGU

NATIONAL CHAIRMAN CHIEF EXECUTIVE OFFICER

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