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HomeHacksHow to Write a Sacco Membership Withdrawal Letter

How to Write a Sacco Membership Withdrawal Letter

Many Kenyans are members of various Saving and Credit Cooperative Organizations (SACCO) where they contribute regular savings and access soft loans.

Sometimes the need to terminate Sacco’s membership arises due to reasons such as an urgent need for cash or a shift of membership to another Sacco.

What most people do not know is that the process of withdrawing from a Sacco is not a straight forward process.

There is a number of steps to be followed and a waiting period in which the Sacco management approves the withdrawal request.

Withdrawal Request Must Be In Writing

One of the Sacco membership terms and conditions is that the request for termination of membership must be forwarded to the Sacco in writing.

The letter should reach the Sacco at least 60 days before the actual withdrawal date.

How to Write the Letter

The letter must be in the acceptable formal format and the purpose of writing clearly indicated in the subject line. The addressee must be the manager of the Sacco branch where your account is domiciled.

The body of the letter must outline clearly the reason for membership withdrawal and the intended effective date and any other information such as pending loans that would be necessary for the Sacco to clear a member for withdrawal.

Critical details that must be included in the letter are:

  • Member’s full names (as they appear in the national ID)
  •  Sacco account number
  •  ID/Passport number
  •  Mobile phone number and email address.

In some Saccos, the withdrawing member may be required to provide the bank account details where their savings will be wired upon approval of the withdraw request.

Others require that the withdraw letter be attached to a withdrawal/ Sacco account closure form that is duly filled out.

It is important to note that the details of the letter may vary from one Sacco to another. Here are a few samples you can use for inspiration:

Once the letter is complete, it must be signed and the date it was signed indicated and the bottom of the last page.

Both hand-written and typed letters are generally acceptable by most Saccos although typing is preferred due to legibility and presentability.

Submission of the Letter

The letter must be submitted to the Sacco branch within the shortest time possible to allow processing and clearance by management.

Upon submission, the letter is stamped and forwarded to the branch manager for clearance.

The member should wait for a clearance notification within 60 days of the submission of the letter.

In sum, withdrawal from a Sacco is not a one-day event. It takes about 60 days (for most Saccos) to process the withdrawal request and refund your savings.

The most important thing is to ensure you provide the required details accurately and clear all outstanding loans to avoid endless trips to the Sacco offices to follow up on clearance.

It’s also worth noting that most Saccos do not refund the member share capital contribution upon withdrawal.

Rather, they encourage members to allow the Sacco to sell the shares to another member and then transfer the proceeds to the withdrawing member’s bank account.

Kenyalogue Contributor

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