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Ushuru Sacco introduces FOSA as it celebrates 50 years of service

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FOSA pride is a special hybrid loan that allows members of Ushuru Sacco to borrow loans up to large amounts.

Ushuru savings and Credit Cooperative Society has introduced a Front Office Service Activity (FOSA) as it marks 50 years of service to its members.

The Sacco is now a Deposit Taking (DT) society, giving its members an opportunity to access FOSA products such as salary advance, Stahiki loan, FOSA Pride, among others and SASA account services, which ease members’ salary processing, ATM/Debit card transaction, EFTs and Standing Orders processing among other services.

The salary advance product available at Ushuru Sacco is a special cash advance facility based on salary, accessible by all members who channel their pay via FOSA for at least 3 months. The society offers a competitive interest rate of 5% per annum on this product. Mode of payment is split for a period of 1 Month, 3 Months and 6 Months.

FOSA pride is a special hybrid loan that allows members of Ushuru Sacco to borrow loans up to large amounts. The loan is repayable within a maximum of 2 years, and an insurance premium of 3% recovered upfront. An interest rate of 1.55% per annum is applied on a reducing balance.

Ushuru Sacco also offers Stahiki loan, a special FOSA loan facility, to all members who channel their salary via FOSA for at least three (3) months. The repayment period for this loan is 12 months at an interest rate of 1.25% per month on reducing balance.

Since its inception in 1970, the society has been offering the Back Office Service Activities (BOSA), with products ranging from Development Loans, School Fees Loan, Emergency Loan and Special Credit Products –which includes, Shujaa Loan, Tiba Loan, Almasi Loan and Jongea Loan.

It also offers mobile banking services such as M-Sacco, M-POA LOAN and MOBILE APP, which delivers services to members at any place they are.

Savings products at Ushuru Sacco range from SASA Savings, which enables members to access and carry out transactions in their account, process salary and standing orders among other services.

JAZA-JAZA Savings is a service offered by the society with a minimum monthly contribution of Kshs.500 and allows members to access free standing orders from Transactional (SASA) account, with an interest of 5% twice a year.

Another savings product is the Ordinary Savings, which gives members an opportunity to contribute a minimum of Ksh. 3,000 per months and can be used as a collateral against borrowings BOSA loans. The account earns members interest at the end of each financial year.

Others include FIXED, PAMOJA, KWENZI Savings, HOLIDAY Savings and ASISI Business savings which operates under a minimum balance of Kshs. 1,000.

The Sacco’s current membership stands at 6,392 members, majorly drawn from KRA employees, public servants and private firms or sectors.

The sectors include the National Hospital Insurance Fund, KRA – Itax Support Staff, Fly 540 Aviation, East Africa Safaris, the National Transport and Safety Authority, PZ Cussons East Africa, Kenya Literature Bureau, Government Ministries and Agencies, National Housing Cooperation, The Banda School, Jomo Kenya University of Agriculture and Technology, Kenya Airports Authority, Retirement Benefits Authority, Sika Investment Kenya, County Governments, Ex-KRA, Ushuru Staff, Cash/Standing Order Members, IDIA Africa among others.

Being a member of the society, one enjoys Rights which include rights to Receive, periodically and regularly, or upon request, and at least once a year, a statement of the Member’s Accounts.

Members are allowed to attend and participate at the branch general meetings. Each Member shall have one vote irrespective of the shareholding.

They have rights to elect or be elected as officer of the Society, unless otherwise prohibited by any other law or where specifically disqualified by these By-laws.

Members can use the Society services according to the policies and procedures approved by the Management Committee,

A member can submit projects or initiatives to the Committee, for the improvement of the Society services.

Other rights as prescribed by the Act and Rules provides that a member who qualified for Membership into the Society by virtue of his or her employment with the Society shall not be eligible for election to any organ, Committee or office of the Society save that of his or her employment.

Ushuru Savings and Credit Cooperative Society was formed in 1970 by employees of the then Customs and Excise Department, Ministry of Finance, under the name of Customs and Excise Workers (CUEW) Sacco.

Since then, the society’s membership was limited to employees of the Customs Department, although those who were transferred from Customs to other Government Departments were allowed to retain their membership.

As the Kenya Revenue Authority (KRA) came into effect in 1995, CUEW Sacco By-laws were changed, allowing the recruitment of members outside the common bond.

This necessitated the registration of new membership from other Government Ministries and Parastatals.

In 2002, CUEW Sacco changed its name to Ushuru Co-op Saving and Credit Society Limited to reflect the new all-inclusive membership that now consisted of KRA employees and other public and private institutions.

The Sacco is registered under the cooperative act and the Sacco Society Regulatory Authority (SASRA), with an aim of providing quality, efficient and affordable products and services while exploiting new technological frontiers.