How Kenyan SACCOs handle savings after a member dies

SACCOs have expanded in Kenya and are now financial lifelines. However, what is done when one of the members dies?

Grief in many families is soon followed by confusion, particularly when they attempt to get the SACCO savings of their loved ones. Fortunately, majority of SACCOs are well outlined.

To begin with, SACCOs demand that the members give their next of kin’s names during joining. This nominee is the individual who is assigned to get the savings and benefits of the member when they pass on.

When there is a nominee, the process becomes easy according to Jane Mutheu, a SACCO officer. However, in the absence of the nomination, the family will require some legal papers such as death certificate and a letter of administration.

In order to receive savings, the family would have to provide:

An official certificate of death

The burial permit belonging to the member

The ID or relationship evidence of the nominee

The SACCO filled-in claim form

Nearly 60 Saccos are facing auction over Sh1.36 billion loans

The timeline varies with each SACCO but most of them demand claims to be made within a few months. The money can be remitted to the Financial Assets Authority (UFAA) in case it remains unclaimed.

There is also the benevolent fund, which is a small amount of monthly contribution by the members of most SACCOs. In the event of a member`s demise:

Writing off loans occurs

The savings can be doubled

There is a payment of funeral expenses to the family

The amount that some SACCOs allow as burial is up to Sh 150,000 and some SACCOs pay a similar amount to the member’s savings.

“Some SACCOs will even provide your nominee with 1 million in case you saved Sh 500,000 says Jane.

SACCOs also recommend that their members update nominee details to prevent arguments. In turn, families are to be quick and bring the correct documents.