How to transfer shares from one SACCO to another
By Aloys Michael, December 22, 2025Moving your savings from one Savings and Credit Cooperative Organisation (SACCO) to another is a decision many members make as their needs change.
You may be relocating, changing jobs, or simply finding a SACCO that offers better services. While people often talk about transferring shares, the process is usually not a direct move from one SACCO to another.
In most cases, it involves withdrawing your shares from the old SACCO and then buying shares in the new one.
Before taking any step, it is important to understand the rules of both SACCOs. Each SACCO operates under its own bylaws, which explain how shares are handled.
Some SACCOs do not allow direct share transfers at all. Instead, they require a member to resign or withdraw and then receive the value of their shares in cash. The new SACCO will then treat you as a fresh member buying shares. Reading these rules early helps you avoid delays and surprises.
You should also make sure you are fully compliant with your current SACCO. Most SACCOs will not process a share withdrawal if you have an outstanding loan or unpaid obligations. Any loans must be cleared first, and minimum membership conditions must be met.
At the same time, confirm that the SACCO you want to join is open to new members and allows you to buy shares either through a lump sum or regular contributions.
Once you are clear on the rules, you can formally request to withdraw your shares from the current SACCO. This is usually done through a written application.
Moreover, the SACCO may ask for details such as your membership number and the number of shares you hold. Some SACCOs require approval from their board or a members’ meeting, which can take time. Patience is often needed at this stage.
What’s next after approval?
After approval, the SACCO will value your shares. This determines how much money you will receive. In many SACCOs, shares are paid out at face value, though policies differ.
It is also important to note that some SACCOs have waiting periods before payment is made. In certain cases, taxes or penalties may apply, depending on the law and the SACCO’s policies.
With the money from your withdrawn shares, you can then apply to join the new SACCO. This involves filling out a membership form and providing basic documents such as an identity card.
You will deposit the money as share capital in accordance with the new SACCO’s requirements. Only after this step will you be recognised as a full member with shares in the new organisation.
Throughout the process, keeping proper records is essential. Copies of applications, approvals, payment receipts and membership confirmations can protect you if questions arise later.
Transferring your shares may not be instant, but with the right information and preparation, it can be done smoothly and securely, allowing you to continue saving and growing your money in a SACCO that best fits your needs.