Is SACCO Share Capital Refundable? Everything You Need to Know About Shares and Savings in 2026

In 2026, many Kenyan investors are looking for ways to maximize their wealth through Savings and Credit Cooperative Societies (SACCOs). However, one of the most common points of confusion is whether your money is "locked" or "refundable."

The short answer is that share capital is non-refundable, but that doesn't mean your money is gone. This guide breaks down the essential differences between shares and savings, helping you navigate the Saccoshares marketplace with confidence.

What is the Capital Share in a SACCO?

Capital Share (often called Share Capital) represents your unit of ownership in the society. It is the "equity" that makes you a co-owner rather than just a customer.

• Purpose: It gives you the right to vote at the AGM and a stake in the society’s net worth.

• Minimums: In Kenya, the minimum share capital typically ranges from Ksh 10,000 to Ksh 50,000, depending on the SACCO.

• Restrictions: Unlike savings, share capital cannot be used as security for a loan.

How to Increase Share Capital in a SACCO?

Increasing your share capital is a strategic move to boost your annual passive income. In 2026, there are three primary ways to do this:

1. Lump-Sum Payments: You can make a direct deposit via M-Pesa or bank transfer to top up your shares.

2. Monthly Allocations: Most SACCOs allow you to split your monthly contribution between savings and shares.

3. Dividend Capitalization: Instead of taking your annual dividends in cash, you can choose to "plow them back," converting your profits into more shares to trigger a compounding effect.

Do Savings in a SACCO Earn Interest?

Yes. While shares earn dividends, your monthly savings (often called BOSA Deposits) earn Interest on Deposits (or rebates). In 2026, top-performing Kenyan SACCOs are offering interest rates between 8% and 13%. These savings are what determines your borrowing power, typically allowing you to borrow up to 3 or 4 times your total deposit balance.

What are the Benefits and Risks of Owning Shares?

The Benefits

• High Passive Income: Shares typically earn higher returns (12% – 20% dividends) compared to savings.

• Co-ownership: You have a say in the management and strategic direction of the society.

• Longevity: Shares continue to earn dividends even after you retire, providing a steady income stream for life.

The Risks

• Non-Refundable Nature: Per SASRA regulations, if you leave a SACCO, the society will not refund your share capital cash.

• Loss Exposure: As an equity holder, if the SACCO performs poorly or faces liquidation, your share capital is the first to be affected.

The Solution: Is Share Capital Refundable in a SACCO?

As stated, it is not refundable. However, it is transferable. If you need to exit a society or liquidate your investment for cash, you must find a buyer to take over your shares. This is exactly why Saccoshares exists. We provide a secure, transparent platform to connect:

• Sellers: Members who need liquidity and want to trade their non-withdrawable shares.

• Buyers: New investors looking to buy into high-performing, dividend-rich SACCOs without waiting months for membership approval.

Conclusion

Understanding the difference between your refundable savings and your permanent share capital is the first step toward financial mastery in the Kenyan cooperative sector. While your shares stay in the SACCO, they are your hardest-working assets—earning you the highest returns year after year.