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eric bundi
Nov 17, 2021
In General Discussion
Find your answers easily. 1. Who/What is CHUNA SACCO? CHUNA is an acronym for CHUO KIKUU CHA NAIROBI (UNIVERSITY OF NAIROBI) and also depicts the act of enjoying a fruit (simply fruits of investments). It is a Savings and Credit Co-operative originally by the staff members of the University of Nairobi and is duly licensed by Sacco Regulatory Authority (SASRA) 2. How can I contact CHUNA Sacco? P. O. Box 30197-00100 Nairobi Tel Nos. 0733809421/0705951672/0794875028 Email: chunasacco@uonbi.ac.ke WhatsApp No. 0794875028 Facebook page Chuna Sacco. Youtube: chuna sacco Website www.chunasaco.co.ke 3. How do I benefit from the Sacco? The Sacco benefits you in the following ways; [1] Enables you to save for the future, [2] Grants you affordable credit facilities at the Sacco thus enabling you to; - Meet your short term financial obligations e.g. School fees, rent, emergency medical bills, etc. - Meet your life development objectives e.g. purchase a home, start a business, etc [3] Helps you make prudent financial decisions through various channels. [4] Give you return on investments e.g. dividends and interest. [5] Provides you with Financial Advisory and banking services. [6] Provides welfare services through CHUMBEFU. In simple terms the Sacco covers you from facing financial embarrassments. 4. How do I join the Sacco? Download the membership application form from our site, fill the contents as required, attach your passport photo, copy of ID and a copy of KRA pin certificate. Send the form and attachments to us either physically or electronically. 5.How will I know the account is open? An sms notification with your CHUNA Membership No. will be sent to you within 48hours 6.Is there a joining fee? Yes, a one off registration fee of Kes 500.00 7. Is there minimum monthly contribution? Yes, the minimum Deposits monthly contribution is Kes 2,500.00 8. Is there maximum monthly contribution? No, there is no maximum monthly contributions. You can contribute any amount above Kes 2,500.00 9. Can I be a member if [a] not in employment anywhere? [b] not employment of the University of Nairobi? [c] is a retiree of the University? Yes. Chuna Sacco membership is open to everyone who can sustain the monthly contributions and they shall qualify for loans under the terms applicable. 10. What is share capital? Share Capital is institutional capital of the Sacco. Each and every member is mandated to purchase minimum of Kes 41,500.00 It is what makes you an owner of the Sacco (as a Shareholder) 11. .How soon should I purchase share capital? The Sacco gives members a flexible purchase period by setting a minimum of 500 monthly payments until one achieves the minimum Share Capital of Kes 41,500. 12. Is the Share Capital refundable? As per the law, Share Capital is non-refundable and is only transferable to an existing member of the Sacco by selling or free of charge when ceasing to be a member. The law only allows Share Capital to be refunded in case the Sacco is liquating/winding up 13. Once I become a member, can I introduce my friends to join the Sacco?? Yes, you may introduce your friends, colleagues and family to join the Sacco. 14.Does a member get an incentive for recruiting a new member? Yes, any member who recruits a new member will be paid an incentive of Kes 500.00 after the newly recruited member makes his/her 1st contribution. 15. Do I get return on both monthly contribution and shares? Yes. The returns are earned at the end of the financial year and are distributed once approved by the Annual Delegates Meeting. 16. Can I purchase shares above 41,500? Yes, you can purchase more shares. This increases your percentage ownership of the Sacco and also helps the Sacco to undertake capital expenditure projects. The extra Share Capital you purchase earns you enhanced dividends, USSD Code *850# 17. How do I make my monthly deposits and shares contribution? Through Bank standing order, direct debits, M-Pesa Paybill No. 561999, cash deposits at Sacco offices, payment at the Sacco Bank account (Co-op Bank A/c No. 01120062565202) and Employer Check off. 18. Are the Sacco services available online? Yes. [1] You can send a scanned loan application form for processing through email. [2] You can guarantee a loan by simply sending an email stating the Loanee and the amount. [3] You can check your statement online. [4] You can access unsecured loan up to Ksh 15,000.00 through your phone. (M-CHUNA) And many more. 19. How do I check/keep track of my account? We have the following channels; [1] Mobile app ''Chuna Sacco’’. Download it from google play store [2] Use our USSD *850♯ for members’ registered with our mobile banking services (Safaricom users only). [3]You can also log in to members portal in our website through android phone or any other computer to access your profile. 20. What amount of Loan can I qualify for? The Sacco has a variety of Credit facilities/products both in BOSA and FOSA. [1] For FOSA loan you can get up to a maximum of Kes 300,000.00 as long as you have been a member for three months and your salary paypoint is FOSA. [2] For BOSA loans the amount you can get shall not exceed three (3) times of your BOSA deposits. 21.For how long must I have been a member to access a loan? You need to save consistently for 3 months and 6 months to access FOSA loan and BOSA products respectively. 22. Can I top up (one off increase) my deposits to qualify for a bigger loan? Yes. If you deposit a lump sum you will need to wait for at least 6 Months in order to qualify for a loan (with the boosted amount if taken into consideration) or pay a boosting fee of 10% of the amount deposited. The Sacco can also pay the money on your behalf at a fee of 15% 23. Does the Sacco buy loans from other financial institutions? Yes, all you need is seek advice from our credit officers by presenting latest Certified Loan Statement/s from the Financial Institution and your latest payslip. 24. How long does the Sacco take to process a loan? This varies depending on the type of loan a member is borrowing: The processing period for a long term loan currently is within 30 calendar days while that of short and medium term loan is within 24hours. However, this is subject to one providing all the required documents for the loan. 25. What is the difference between long, medium and short term loans? A short term loan is a loan that you service within 12months, medium term loan is a loan that can be serviced up to 24months while long term loans are those that can be serviced over past 24 months. 26. Which documentations do I need when applying for a loan? You need to fill the appropriate loan application form (Downloadable from our Website), attach copy of ID, latest certified payslip (If on Check off arrangement). For those not on check off arrangement with the Sacco one must provide 6 (six) months latest certified Bank Statement/s. This applies to all type of loans Short /Long term loans 27. How many guarantors do I need to guarantee my loan? A minimum of 4 guarantors for short term loans while for medium term loans and long term loans a minimum of eight (8) guarantors for long term loans. Self guarantorship is also accepted if the member has enough deposits and has not guaranteed any other member’s loan. 28. Can I pay my loan in lump sum or will I be charged extra? Yes you can pay your loan in lump sum repayment/s anytime. You will NOT be penalized for fast tracking your loan repayment 29. What constitutes loan default? And what happens to loan defaulters? In law, loan default constitutes: [1] Underpayment or total non-payment amount agreed as per loan contract (principal/interest) or [2] Failure to pay on agreed date. Defaulters are listed with CRBs and Debts Collectors assigned their cases as their guarantors are recovered the defaulted amount. 30. Can I offset my loan with my Deposits? The law does not allow this, however, we can consider based on your reasons for the same. 31. Will I be recovered a loan I guaranteed but the member died before repaying it all? It depends on time factors and other variables involved e.g. if the member passed on when he/she had already become a defaulter, then the guarantors will pay as the Insurance does not cover such. However, if the death occurred when the members had not defaulted, then the insurance will pay the loan and not the guarantor. 32. What is CHUMBEFU? CHUMBEFU is an Acronym for CHUNA MEMBERS BENOLENCE FUND. And it helps members as follows in defraying funeral expenses; [1] When a member passes own the Sacco pays Kes 70,000.00 [2] When a spouse of a member passes on the Sacco pays Kes 30,000.00 [3] When a child (below 21 years) of a member passes own the Sacco pays Kes 20,000.00 33. Is CHUMBEFU refundable? No. It is a welfare fund where one only benefits in case of death. How can a beneficiary of a deceased members access his/her dues at the Sacco? The beneficiary Must present the following documents to the office; [1] Certified copy of Death Certificate/Burial Permit. [2] Copy of National IDs of the deceased and the beneficiary. [3] Letter from the Chief of the local area the deceased hailed from, identifying the deceased and the beneficiary. [4] Letter by the beneficiary claiming the deceased dues. [5] Letter from the employer of the deceased, if he/she was employed. 34. Can I change my Next of Kin? Yes you can by filling in a Next of Kin Update Form. The form is available on our website. 35. What is the process of terminating membership of the Sacco? The notice period is 60 days to enable the Sacco align your account i.e. If you had guaranteed someone, they will need to find replacements in order to release you. 36. How do I open a FOSA Account Every member by default has a FOSA A/C 37. How does the FOSA operate? You can operate your FOSA just like any other “Bank” account. E.g. process your salary, make deposits to your account via M-Pesa or direct funds transfer, or over the counter and cheques. We also pay all loans via FOSA as a matter of policy. 38. How do I access funds in my FOSA Account? Over the counter withdrawal, ATM card, USSD *850# or Chuna Sacco APP downloadable from Google Play Store 39. Do I automatically get an ATM? No, you MUST apply for an ATM Card by filling the ATM Application Form. The form is available on our website. 40. Can I open more than one FOSA account? Yes, we have different types of accounts you can open e.g. Education, Fixed Deposit, Holiday accounts and many more. You do earn interest at the end of the for the balances in those accounts except FOSA Ordinary account which is the current a/c. 41. Can I get a salary advance if am processing salary through the Sacco? Yes you can apply by filing an advance application form (Downloadable from our website). However, your salary paypoint must be FOSA. 42. Any fees charged for salary processing? Yes, kes 100 only. 43. What is the maximum amount I can withdraw: [a] over the counter (OTC) at FOSA? [b] at the ATM Machine? [c] at Co-op bank OTC? [d] using mobile phone (Cloudpesa)? [a] OTC at FOSA Kes 300,000.00 per day [b] ATM Machine KES 40,000.00 per day [c] OTC at Co-op Bank Kes 300,000.00 per day [f] Cloudpesa Kes 30,000.00 per day (to go to Ksh 50,000.00 from January, 2021) 44. Who is a Delegate of the Sacco? This the individual elected in a particular constituency (campus) to represent Sacco members from that particular campus or area where members are grouped together. 45. Can I become a Delegate? Yes. The Sacco always announces vacancies and elections for delegates, how to apply and the date for elections. The members from that particular campus chooses the Delegate through secret ballot voting. 46. If I have a complaint, what is the process of presenting the same to the Sacco? You do a letter to the CEO detailing the matter and he/she will typically respond within seven (7) days and will grant a chance if need be for you to explain. If you are not satisfied with the response you can appeal to the; [1] Audit Subcommittee, if not satisfied escalate it to [2] the Board and if not satisfied to escalate to [3] the Supervisory Committee. For more information you can contact us on; P. O. Box 30197-00100 Nairobi Tel Nos. 0733809421/0705951672/0794875028 Email chunasacco@uonbi.ac.ke Whatsapp No. 0794875028 Facebook page Chuna Sacco. Youtube: chuna sacco Website: www.chunasacco.co.ke CHUNA SACCO, The University Sacco.
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eric bundi
Nov 17, 2021
In General Discussion
The new rules the government is implementing in a bid to tame rogue Saccos are expected to secure the funds for the millions of Kenyans who save through the non-deposit-taking Saccos. The regulations could, however, result in the savers taking a cut on the dividends they take home every year as Saccos retain earnings to meet the new requirements. The regulations require the non-deposit-taking Saccos to meet certain requirements that will enhance governance and in turn secure deposits. The Sacco Societies Regulations of 2020 also require the cooperatives to increase their capital base, which could see the Saccos deny their members dividends and retain earnings to meet such requirements. The regulations will bring Saccos with deposits of over Sh100 million under the oversight of Sacco Societies Regulatory Authority (Sasra). They have previously been regulated by the Commissioner of Cooperatives, whose requirements has been a little lax. Sasra has as of last year been regulating operations of 175 deposit-taking Saccos. The new rules, which came into effect in January this year and gave players a six-month window to comply, place more demands on management of Saccos including minimum capital and liquidity requirements and file regular reports with Sasra on the state of the Sacco. “We believe bringing these non-deposit-taking Saccos under the regulatory oversight of Sasra will extend the benefits of regulated savings and loan services to more Kenyans while improving the stability and resilience of the sub-sector,” said John Munuve chairman, Sasra. The non-deposit-taking Saccos are now expected to have structures in place that guide their operations. The Saccos, which are also referred to as Back Office Service Activity (Bosa), have had minimalist operations, at times owing to their size and scarce resources. Many continue to operate as fairly small entities but some have over time grown and hence the need to increase oversight on them. They will now be required to maintain a core capital of at least Sh5 million. At the same time, the minimum capital should not be less than eight percent of its total assets. The core capital should also not be less than five per cent of the total non-withdrawable deposits held by the Sacco. Sasra may require a Sacco to have higher minimum capital ratio based on certain factors such as a loss that may result in capital deficiency, a Sacco having a high volume of poor quality of assets and rapid growth without adequate capitalisation. “If you are a member of a Sacco that is now regulated by Sasra, you can be sure your deposits are secure. Through the regular reporting and other requirements, Sasra is able to see if a Sacco is running in a healthy and prudent way, if it is not they will be able to raise an alarm and act,” said John Warui, the chief executive of Standard Group’s Network Sacco Limited. “Under the commissioner of cooperatives, they would in most instances move slowly such that by the time they are taking action, the Sacco in question would have collapsed.” Members across many Saccos will have to take a cut in the dividends that they have been getting from their Saccos. Warui explained that to meet such requirements as the minimum core capital requirements, Saccos would have to retain profits that Saccos previously paid out in dividends. He however added that in the coming years, with would translate to Saccos having more funds at the disposal of their members. “Some of the benefits that will accrue to members might not be felt immediately but they will appreciate them in time. For instance, the requirement to have adequate capital base will help in future. The practice has been that a Sacco will distribute the surplus funds made in a year to members as dividends,” he said. “This way, a Sacco could not grow its capital base. By putting in the minimum core capital requirements will mean that Saccos will with time have financial muscle to increase loan repayment period for members and even offer mortgage products.” “In three to five years, we will have enough muscle to support the gaps that have existed in the past. The rules are for posterity to enable Saccos to grow such that we might even compete with banks, for instance, when it comes to financing some of our members’ projects.” Other requirements include the non-deposit-taking Saccos having to maintain a liquidity ratio of not less than ten per cent of the non-withdrawable deposits and short-term liabilities in liquid assets. Failure adhere to the required ratios might see a Sacco penalised, including suspension of some of its operations including taking new non-withdrawable deposits, lending and investing. Some of the penalties will be harsh for the members, as the Sacco might be prohibited by Sasra from declaring dividends. The regulations also require the Saccos to file quarterly and annual reports with Sasra. There are also areas of business that the non-deposit Saccos cannot undertake which include operating in the manner that the deposit-taking Saccos do, foreign trade operations, dealing in cryptocurrencies and investing in venture capital. Agriculture and Cooperatives CS Peter Munya says the new rules are aimed at protecting members’ funds, which is among the reasons Saccos will not be allowed to invest in what he termed risky ventures. “The prudential legal framework provided in the Sacco Societies Act and the Regulations, 2020 are meant to ensure the savings and deposits collected from the public are not only protected but also secured at all times,” said Munya. As reported by the standard media.
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eric bundi
Nov 17, 2021
In General Discussion
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CHUNA SACCO SOCIETY LIMITED
"the university Sacco"

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