Understanding Share Capital in Koinonia Church and Clergy SACCO (KCCS)

The Share Capital Account is the foundational ownership stake that each member holds in Koinonia Church and Clergy SACCO (KCCS). It represents a member’s permanent contribution toward the SACCO's capital base and is a requirement for registration. Share capital is non-withdrawable but transferable, and it entitles members to ownership rights, annual dividends, and participation in governance.

Purpose of Share Capital

• Provides a stable capital base for SACCO operations and investments
• Establishes member ownership and responsibility in the SACCO
• Determines voting rights and eligibility for leadership positions
• Supports long-term sustainability of the SACCO

Key Features

• Mandatory for all members to maintain SACCO membership
• Minimum Share Capital Requirement: KES 5,000 (can be paid in lump sum or installments)
• Entitles members to annual dividends based on SACCO performance
• Non-withdrawable during the period of membership
• Transferable to another member upon exit or death
• Recorded in member’s name and reflected in member statements

Minimum Share Capital Requirement
The required minimum share capital is KES 5,000, which can be paid as a lump sum or in installments. The value of each share is usually fixed (ksh. 250 per share), and members must buy a minimum number (20 shares).

Used for Capitalization
Share capital helps the SACCO:
Build financial strength
Access loans from financial institutions
Invest in infrastructure or other income-generating ventures

Entitles members to annual dividends based on SACCO performance
Members are entitled to annual dividends from the SACCO’s net surplus based on their share capital.

Non-withdrawable during the period of membership
Share capital cannot be withdrawn while the member is active. It is a permanent contribution to the SACCO. Unlike savings or deposits which can be withdrawn or used as collateral, share capital is usually locked in and only withdrawn when exiting the SACCO; it is transferable to another member upon exit or death.

Governance & Participation
Members with share capital get to participate in decisions made at the Annual General Meeting (AGM), including voting on leadership, approving financial reports, and setting policies.

Benefits to Members

• Ownership Rights: Shareholders are co-owners of KCCS and participate in decision-making at the Annual General Meeting (AGM)
• Dividends: Members receive an annual return on their share capital based on the SACCO’s net surplus
• Institutional Strength: Member shares fund long-term projects and enhance the SACCO's financial muscle

❗ Important Notes

• Share Capital cannot be used as collateral for loans.
• Members cannot withdraw share capital unless they are exiting the SACCO.

Upon Exit

Share capital can be:

• Transferred to another eligible member
• Refunded once approved by the Board and a replacement is found (as per policy)

Members must maintain the minimum share capital balance to retain active status.