KENYA PHARMACEAUTICAL
ASSOCIATION SACCO
MEMBERS FORUM
MINISTRY OF CO-OPERATIVE
DEVELOPMENT AND MARKETING
presentation by: Roselyn Masidza
co-operative officer
Dagoretti District
DEFINITION OF CO-OPERATIVE
 An association of people who voluntarily come
together for the purpose of improving their
standards of living and have agreed to be guided and
governed by certain specific co-operative principles,
Laws and Rules.
JUSTIFICATION FOR CO-OPERATIVES
1. It’s an economic movement
 People will not always be able to satisfy their
economic needs individually due to shortage of
sufficient funds to buy all they need.
 Provides opportunities for cooperators to buildup
capital to finance their business through gradual but
regular savings of money.
 Provides employment opportunities.
Justification (cont)
 Substantial contribution to the commercial growth
and development of the country by undertaking
business ventures economic productions and small
scale enterprises financing.
 Promotion of workers empowerments. Many civil
servants and other workers own houses, cars and
other properties by virtue of being members of one
cooperative society or the other.
Justification (cont)
 Bonuses are given to members on patronage which
enhance their personal income which has improved
the Standard of living of the cooperators thus
guaranteeing quality of members' lives.
 Cooperative is a major vehicle for a nation's
industrial development.
 Cooperative societies liberate people from the states
of inferiority, economic dependence and insecurity.
 Cooperative societies have contributed to the wealth
creation and reduction in poverty.
Justification (cont)
2. It’s a social movement
 Members are able to interact and take part in
leadership thus improving leadership skills and
creating social harmony.
 Members from different backgrounds like tribes,
races, religion and even country are able to integrate
and work together
Justification (cont)
3. Improves technology
 With introduction of technology productivity is
increased by insuring there is effective and efficient
in service delivery. e g information technology has
simplified every work in co-operatives thus leading
to quick processing, disbursement and loan recovery.
CO-OPERATIVE MOVEMENT IN KENYA
 The Co-operative Movement in Kenya may be traced
to the period immediately after the country’s
independence.
 It was supposed to play an important role in wealth
creation, food security and employment generation
and hence participate in poverty alleviation.
Co-op movement(cont)
 To date, there are over 12,000 registered cooperative
societies country-wide. The membership is over
7million and has mobilized over Kshs. 200 billion
which is about 31% of national gross domestic
product. Out of the 12,000 co-operatives 5,000 are
Saccos with 215 operating front office saving
activity. The cooperatives have employed over
400,000 people besides providing opportunities for
self-employment.
Co-op movement(cont)
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Indeed, a significant number of Kenyans,
approximately 65% draw their livelihood either
directly or indirectly from cooperative-based
enterprises
kenya is leading in Africa with the largest cooperative being Harambee Sacco in terms of
membership and mwalimu Sacco in terms of
savings mobilization.
Harambee Sacco has got 30000 members having
mobilized kshs 12billion and mwalimu Sacco has
got 10000members having mobilized kshs 14
billion
KENYA PHARMACEATICAL
ASSOCIATION AMMENDED SACCO BY
LAWS
1. NAME AND AREA OF OPERATION
 The society shall be called Kenya
Pharmaceutical Association Savings
and Credit Co-operative Society
Limited and its area of operation shall
be Dagoretti District.
By-laws(cont)
2. REGISTERED OFFICE/ POSTAL ADDRESS
 The registered office of the society shall be at Golf
Course Commercial Centre, 1st floor office no.10,
Kenyatta Market off Mbagathi Road – Dagoretti
District, and its postal address shall be P.O. Box
20771-00202,
By-laws(cont)
3.ELIGIBILITY FOR MEMBERSHIP
A person of either sex shall be eligible for
membership if he/she possesses the following
qualifications:  Is within the field of membership consisting of the
following common bond;a) Is a member of Kenya Pharmaceutical Association.
b) Is an employee of Kenya Pharmaceutical Association
c) Is a person who at the time of leaving Kenya
pharmaceutical association employment he/she was an
active member of the Sacco.
d) Is not less than 18 years of age.
By-laws(cont)
e) Is of good character and sound mind
f) Is an employee of the Sacco.
g) Pays the entrance fee and share capital as
prescribed in these by-laws.
h) Is not a member of any co-operative society with
similar objective within the Society’s area of
operation.
i) Has not been convicted of a criminal offence
involving fraud or dishonesty.
By-laws (cont)
4. ADMISSION INTO MEMBERSHIP
 An applicant shall be admitted to membership on
application upon payment of an entrance fee of
Kshs.1000, purchased at least 250 shares of
kshs20/= each and paid a minimum of kshs 1000 for
monthly deposits or such other minimum shares as
shall be fixed by the General meeting from time to
time.
By-laws (cont)
5. WITHDRAWAL FROM SOCIETY
 A member may at anytime withdraw from the society
by giving at least sixty (60) days written notice to the
committee.
6. SHARES
 Every member shall hold at least 250 shares of Kshs
20 each as shall be fixed by the General Meeting.
However, no member shall hold more than one-fifth
of the total shares of the society
By-laws (cont)
7.TRANSFER OF SHARES
 With the approval of the Committee, a member may
at any time transfer shares to another member but
not to any other person. Such transfers must be in
writing and at nominal value.
 All transfers of shares shall be registered with the
society and no transfer shall be valid unless so
registered. A fee of Kshs 500/= (five hundred) shall
be payable by the transferee.
By-laws (cont)
8. RESERVE FUND
 The society shall pay into the Reserve Fund maintained
in pursuance of the provisions of Section 47 of the Act
and the Rules one fifth (1/5) of any net surplus resulting
from the operations of the society during a financial year.
 The Reserve Fund of the society shall be invested in the
manner provided for in these by-laws.
 The Reserve Fund shall be indivisible and no member
shall be entitled to claim a specific share of it.
 No withdrawal shall be made from the reserve fund of
the society without a resolution from the General
Meeting and a written approval from the Commissioner.
By-laws (cont)
9.QUORUM
 Except when convened by the Commissioner, the
presence of at least 50 or one quarter (1/4) of the total
membership, whichever is less, shall constitute a quorum
for the conduct of business at the General Meeting. When
a quorum is not attained the chairman shall adjourn the
meeting and fix a date for another meeting within one
month, which shall be advertised as prescribed in these
by-laws. If a quorum is again not attained, the chairman
shall declare the meeting open with those present one
hour after the advertised time of the meeting.
By-laws (cont)
10. THE MANAGEMENT COMMITTEE
 The Committee shall be the governing body of the society
elected from the general membership and shall consist of
9(nine) members. It shall include the Chairman, Vice
chairman, Treasurer and Secretary all of whom shall be
elected by the Committee from amongst the members of the
Committee.
 Members of the committee shall hold office for a period of
three years subject to one-third retiring annually except for
the chairman and vice chairman who shall retire at the end of
the third year. The retiring members shall however be eligible
for re-election.
 Where the membership of the committee falls below five the
committee shall co-opt qualified member(s) into the
committee until the next General Meeting
By-laws (cont)
11. ELIGIBILITY FOR MEMBERSHIP TO THE
MANAGEMENT COMMITTEE
 No person shall be eligible for membership in the
committee of the society if he/she: Is not a member of the society;
 Is under eighteen years of age;
 Is unable to read and write;
 Receives any remuneration, salary or other payments
from the society save as in accordance with this Act;
 Is a committee member in two other societies;
 Lends money on own account;
By-laws (cont)
 Is an undischarged bankrupt;
 Is of unsound mind;
 Has been convicted of any offence involving dishonesty
or is sentenced to imprisonment for a term exceeding
three months;
 Has been convicted of any offence under this Act or rules.
 Has any uncleared debt owing to the society at the end of
its financial year other than in respect of a loan granted
under the provision of any regulations made under this
Act;
 Is a person against whom any amount of money is due
under a decree, decision or order or is pending recovery
under this Act.
THANK YOU
END