Hazina Sacco Membership Eligibility and Requirements

ByElizabeth Atieno

Oct 9, 2023
Hazina Sacco Membership Eligibility and Requirements

What is a SACCO? A SACCO is an abbreviation for Savings and Credit Co-Operative Society. It’s a member-based financial institution owned and controlled by its members, who are also the customers using its services. The business model of most SACCOs is to collect savings from their members and to intermediate them into loans. This enables the rural and poor population to deposit savings as well as take loans. So, what is Hazina Sacco all about, and how does one become a member?

Hazina Sacco Society Limited, established in 1971 and registered under Kenya’s Co-operatives Societies Act (Cap 490), operates nationwide. SASRA regulates Hazina Sacco, which aims to encourage thrift and savings among members to create a loanable fund source. Initially, it served the Ministry of Finance and Planning. Still, it expanded its membership to include ministries, Parastatals, County Governments, and the Private Sector under Sessional Paper No. 1 of 1986 on economic liberalization. Currently, Hazina Sacco boasts over 19,000 active members.

How many Departments Does Hazina Sacco Have? and why they matter

Hazina Sacco has six departments; breaking the Sacco into departments helps its officials to easily manage it. This also adds value when it comes to serving members of the Sacco. So, what are the departments of Hazina Sacco, and what are their functions? Let’s discuss below

1. Finance Department

The finance department mainly deals with Sacco’s financial management. The society’s finances comprise members’ savings, loans to members, society equity and reserves, and investments.

The finance department manages the finances through sound accounting systems and records, accurate reporting, and investment decisions based on international accounting systems/principles.

The department has three sections to achieve society’s objectives: The accounts section, the Ledger (MPA) section, and the FOSA section. Each division is headed by a section Head who reports to the Finance Manager.

2. Internal Audit & Risk Management Department

The Internal Audit and Risk Management Department is responsible for ensuring compliance with all rules, regulations, policies, and statutes pertaining to Hazina Sacco Society’s physical and financial assets. In addition, the Internal Audit provides an independent, objective assurance and consulting activity designed to add value and improve society’s operations. Most importantly, the Internal Audit helps society accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal controls, and good governance.

The Internal Audit Risk Management Department is headed by the Audit and Risk Management Officer, who carries out audits in line with the Annual audit plan and Audit programs and reports the findings to the Board through the Audit and Risk Management Committee for implementation. The Audit and Risk Management Committee has the authority to conduct any audits and reviews, carry out special requests, or investigate any matters within its scope of responsibilities with or without prior notice to management and/or external parties.

3. Marketing Department

The Marketing Department’s mission is to drive the Society’s business growth by developing and continuously reviewing business strategies, implementing, monitoring, and evaluating them, fostering the development of the society’s businesses, and promoting products and services to existing and potential members. It also directs external public relations and customer service activities to project a positive societal image and provide quality customer service.

The department’s goals and guidelines align with Sacco’s vision and mission. It studies the market and members to determine the best ways to reach them and to collaborate with Hazina Sacco to identify new product needs. Core responsibilities include formulating marketing strategies, integrating Sacco’s goals, strengths, target markets, pricing, and products into tactics, and executing programs to boost sales and revenue. Marketers listen to members’ needs, gather input from internal stakeholders, and communicate with all departments to ensure consistent brand support and dissemination of information.

4. HR & Administration

The Human Resource Section manages employees’ relationships within the Hazina Sacco Society. It focuses on aligning employees with the organization’s strategic objectives while satisfying their individual needs, aiming to contribute to organizational effectiveness. It assists employees in achieving personal goals, enhancing their contribution to the Hazina Sacco Society, and ensuring the right employees’ recruitment, retention, and motivation for improved performance and satisfaction. The section is led by a Human Resource and Administration officer responsible for optimizing the use of Society’s assets to attain its objectives.

5. ICT Department

The Section has the objectives to achieve high levels of efficiency and effectiveness in serving its members in keeping abreast with modern technological trends by ensuring the information needs of society, such as security, reliability, accuracy, and timeliness for effective information management. The Systems Administrator and his Assistant head the ICT Section.

6. Loans Department

Functions of the Department

  • Performs loan processing
  • Perform appraisal of loans and work out member’s entitlement.
  • Recommend loan applications
  • Prepare files for loan approvals to the Credit Committee
  • Attend to member’s queries on Loan applications
  • Advice on demands for loans to Management
  • Advice members whose applications have been deferred
  • Attending to member correspondence

Who can Join Hazina Sacco?

Hazina Sacco Society welcomes individuals from various segments of the market, including:

  1. Public service employees.
  2. Employees of government ministries and parastatals.
  3. Employees of Hazina Sacco Society.
  4. National government and county employees.
  5. Employees of private organizations and parastatals.
  6. Private individual members.
  7. Chamas and corporates.

To join Hazina Sacco, interested individuals must:

  1. Complete a membership application form and submit it to their offices along with the following:
  • A copy of their National Identity Card.
  • A passport-size photograph.
  • Current payslips for members using the check-off system.
  • A filled Nominee Form.
  • Pay an entrance fee of Ksh. 1,000.

Also, you should achieve the following:

Make a minimum monthly contribution of Ksh. 1,000 or 5% of their basic salary, whichever is higher.

Acquire the minimum share capital within the first 12 months of membership, with the minimum share capital being Ksh. 16,000 as of December 31, 2021. Subsequently, members must contribute Ksh. 1,000 annually.

Contribute Ksh. 200 monthly to the welfare fund, which covers the death of the principal member, spouse, two (2) children per year, and biological parents.

Principles of Hazina Sacco include:

The society membership shall continue to be guided by the following co-operative principles:

  1. Voluntary and open membership
  2. Democratic members control additional principles.
  3. Economic participation by the members
  4. Autonomy and independence
  5. Education, training, and information
  6. Co-operation among co-operatives and
  7. Concern for the community in general

Membership Application: How to apply for membership in Hazina Sacco

Membership application is on a prescribed application form, which should be filled and forwarded to the Office for consideration. Members whose successful applications are sent an acknowledgment and deduction effected in the Payroll immediately. Employers are required to introduce their employees who wish to join the SACCO and commit themselves to deducting and remitting all the Society dues through the Check-off System.

Entrance Fee and Monthly Contributions

Each applicant shall pay a one-off entrance fee of Kshs 1000/= as prescribed in the Sacco By-laws,  which is non-refundable. If share contributions are received before the entrance fee, the same shall be deducted from the received shares. Every member shall be required to make a minimum deposit contribution of Ksh. 1,000 /= per month or 5% of the basic salary, whichever is higher.

What are the Benefits of joining Hazina Sacco Society LTD?

The benefits of joining Hazina Sacco are as follows:

  1. Access to loans of up to Ksh.30 million based on Shares/deposits
  2. Access to salary-based loans of up to Ksh.4 million
  3. Access to salary advances
  4. Enjoy attractive interest on benefits
  5. Enjoy attractive dividends on Shares
  6. Get an excellent avenue to save for your retirement
  7. Enjoy continuous loan processing
  8. Be a shareholder of a fast-growing Sacco.

Hazina loan products

General Loan requirements

Applicants are required to be familiar with the Society’s current Credit Policy.

The applicant must ensure parts B – H are filled in full. Incomplete forms will be returned unconsidered.

The applicant must attach two months’ original current pay slip (not more than two months old to the date of application) and a copy of the National ID card for every loan application. Original Logbook, Title Deed and fixed Deposit/Share deposit statement, KRA PIN, and six-month bank statement where applicable.

All loans are processed as they are received.

All loans shall be disbursed through FOSA Accounts. To enable the society to transfer your funds to your Bank account, indicate your Bank Account Number, Name of the Bank, and Branch under section F.

If your loan is not paid back through payroll, pay it back as soon as possible in CASH or PAYBILL (850436) to prevent late fees, penalties, and defaults.

For Non-check-off members, initiate standing order instructions ahead of disbursement.

For Private members and members who are on contract/temporary employment terms, attach the guarantor consent form to the loan application form.

Back Office Savings Activity (BOSA) Loans

Members with deposits in multiples of 4.5 or 5 are eligible for BOSA loans. Individual members and chamas are only permitted to borrow up to Ksh. 30 million, while corporate borrowers are permitted to borrow up to Ksh. 40 million, subject to their financial capacity. To meet the financial needs of its members, Hazina Sacco provides a variety of products with repayment terms ranging from 12 to 96 months.

1. Normal /Development Loan

  • Given at 4.5 times of a member’s deposits.
  • Interest rate of 1% per month on reducing balance.
  • Maximum repayment period of 84 months.

2. Top-Up Normal /Development Loan

  • Available to members who are servicing the Normal Loan.
  • Given at 4.5 times of a member’s deposits.
  • Maximum repayment period of 84 months.
  • Interest rate of 1% per month on reducing balance. 

3. School Fees and College Fees Loans

  • Given at 4.5 times of a member’s deposits 
  • Maximum repayment period of 12 months.
  • Interest rate of 1% per month on reducing balance.

4. Super Loan

  • Given at five times of a member’s deposits.
  • Maximum repayment period of 96 months.
  • An Interest rate of 1.15% per month is charged on reducing balance.

5. Emergency Loan

  • Given at 4.5 times of a member’s deposits.
  • Maximum repayment period of 12 months.
  • An Interest rate of 1% per month is charged on reducing balance.

6. Top-Up Emergency Loan

  • Given at 4.5 times of a member’s deposits.
  • Maximum repayment period of 18 months.
  • Interest rate of 1% per month on reducing balance.

7. Hisa Loan

  • A facility for boosting a member’s deposits by the Sacco to access a bigger loan or clear an outstanding loan to access a new loan.
  • Maximum of Ksh. 500,000.
  • One-off interest of 5% recovered from the loan issued.

8. Daraja Loan

Advanced within deposits multiplier (*4.5) Repayment period – 48 months Interest rate – 1 % per month on reducing balance If a member wishes to clear emergency loans, an interest on early redemption of 5% shall be charged.

9. Jibu Loan

For new members who are on check-off but have not finished the mandatory four-month waiting period.

  • Given five times a member’s deposits
  • A member qualifies after the first contribution is received.
  • The Maximum loan amount is KES 300,000
  • Interest rate – 1% per month on reducing balance
  • Repayment period- 24 months or within the contract term
  • Hisa loan applies

10. Tech Loan

Loan product for acquisition of telecommunications products (mobile phones and tablets) from any dealer.

  • The Loan limit is 50% of deposits or Kshs. 150,000/= whichever is lower
  • Interest rate- 0.8% on reducing balance
  • Repayment period – 12 months
Tech Loan Application Process:
  1. Members can now purchase products from outlets of choice that offer mobile phones, tablets, and laptops through check-off
  2. The dealer issues member with a proforma invoice indicating the identified device and the respective retail price
  3. Member fills the SACCO loan application form in the usual manner and attaches the proforma invoice.
  4. The loan is appraised and processed in the usual manner.
  5. Payment is made to the service provider.
  6. Member is contacted by the service provider, giving details on the collection of the device. The member will be identified using the original National ID.

     Requirements for Loan Application

Members shall be aware of the present Loan Policy of the Society—incompletely completed loan application. Include one authentic, recent pay stub no older than two months from the application date. A copy of the National ID card with the back and front visible. Guarantors or property Private members must support every loan and may utilize their deposits to provide up to 95% of the guarantee.

Front Office Savings Activity (FOSA) Loans

1. Karibu Loan

  • Granted to FOSA account holders whose salary passes through FOSA or with regular savings.
  • Maximum repayment period of 54 months.
  • Interest rate of 1.17% per month on reducing balance.

2. HSF Special Advance Loan

  • An interest rate of 1.15% per month on reducing balance.
  • Maximum repayment period of 24 months.
  • Maximum loan amount Ksh. 600,000

3. HSF Okoa Advance Loan

  • An interest rate of 1.1% per month on reducing balance.
  • Maximum repayment period of 12 months.
  • Maximum loan amount Ksh. 300,000.

Hazina Sacco Savings Products and Features

1. FOSA Saving Accounts

1. Ordinary Savings Account

  • Minimum operating balance of Ksh. 500. Salary processing.
  • Unlimited deposits and withdrawals.
  • No ledger fees
  • Funds can be accessed through co-operative Bank ATMs, over the counter, Co-op Agents as well as Visa branded ATMs

2. Premium Savings Account

  • Minimum operating balance Ksh. 1,000
  • Minimum interest earning balance Ksh. 5,000
  • Earns competitive interest.
  • One withdrawal per quarter.

3. Jipange Savings Account

  • Minimum operating balance Ksh. 500
  • Minimum monthly contribution Ksh. 500
  • Minimum interest earning balance Ksh. 10,000
  • Withdrawal is after every six (6) months of savings
  • Earns competitive interest.

4. Fixed Deposit Account

  • Minimum Deposit Ksh.20, 000
  • Minimum deposit period three (3) months
  • Interest rates are negotiable and vary with the amount and period

5. Jewel Savings Account

The account aims to cultivate and encourage the culture of saving and financial awareness in your child. The account is for members’ children below 18 years.

  • Minimum operating balance Ksh. 1,000
  • Three free Bankers Cheque for school fees
  • Minimum interest earning balance Ksh.3,000
  • Earns competitive interest 

2. FOSA Advances

6. HSF Salary in Advance

  • Maximum of 100% of member’s net pay
  • One-off interest of 10%
  • Subject to the ability to pay by confirmation of payslip

Hazina Sacco Mobile Banking

Mobile banking allows members to transact remotely using their mobile phone. To access the services, the members of Hazina Sacco must fill and submit the mobile banking application form. The service can be accessed by dialing *850# or installing the Hazina Sacco App from PlayStore on your Android phone.

 To use the app, you will be required to verify your membership by providing the mobile phone number that you indicated on the Mobile Banking Application Form. You will receive a PIN on your phone which you will use to Log in.

How to use Hazina Sacco USSD code to make withdrawals or deposits

  • Dial *850#
  • A popup window will appear, welcoming you to Hazina Sacco and asking for your pin.
  • Enter your PIN, and a menu screen will appear.
  • For balance inquiry, you will select 1, and another popup window will appear asking you to enter your salary account. Once you enter your account, you will receive a message showing you your loan balance.
  • For Cash withdrawal, you will select 2, and another popup window will appear, asking you to enter your salary account.
  • After you enter your account, it will prompt you to enter the withdrawal amount.

Then, once you press okay, another message telling you that your transaction is being processed will appear.

  • For Cash deposit, you will dial number 3, then a popup window appears showing you how to deposit money using paybill
  • For the mini statement, you will type 4, and then it will ask you for your salary account.

Then you will receive a message showing you the last 5 transactions in your FOSA

  • For funds transfer press 5 and it will prompt you to select to transfer to FOSA and BOSA

Once you select BOSA it will then prompt you to select transfer to deposits and transfer to share capital

Then, it will prompt you to select the salary account to transfer from and the amount and it will transfer

By using an App

The mobile application also comes with an App that allows Android phone users to be able the easily accessible app to do the same transactions but in a simpler way.

Below are instructions to download and use the mobile app

  1. Download the app from Playstore by typing Hazina Sacco.
  1. Once you have gotten the app downloaded and installed, open it.
  1. A verification text will be sent to the cellphone number you used to apply for mobile banking, and you will be required to input the text in order to continue once you have opened the program and read the instructions.
  1. To access the app after activation, enter the pin given to you at that time or one you may have modified.
  1. Once inside, you’ll see the readily available menus.
  • User information displays your basic information (biodata )
  • Member statistics displays all your balances in summary.
  • The mini-statement shows your last five transactions.
  • Transfer funds allow you to transfer funds between different transactions as shown in the image below.
  • Withdraw funds allow you to withdraw funds to M-pesa.
  • How to deposit are instructions on how to use our paybill
  • The loan section shows you various items about your loans.
  • A detailed statement will show a detailed statement of BOSA accounts.

How can members make deposits and loan repayments through Hazina Sacco Mpesa Paybill No. 850436?

Instructions on how to deposit money using PAYBILL

  1. Go to M-PESA, then select LIPA na M-PESA
  2. select PAYBILL
  3. Enter 850436 as the Business Number
  4. Account No: YOUR ID NUMBER AND followed by the respective short code, e.g. (12345678DEP)
  5. Enter the amount you wish to deposit (Between Ksh 10 -Kshs 70,000)
  6. Enter Your M-PESA PIN
  7. Confirm Details are correct and press OK

Below is the list of shortcodes to be used when using PAYBILL

Short code Product DescriptionShort code Product description
ENTEntrance FeeCO1College Fees Loan
DEPDeposit ContributionCO2College Loan 2
WEFWelfare FundFSKFOSA Karibu Loan
  HFOHSF Okoa Advance
SAVSavings AccountHFSFOSA Special Advance
SALSalary AccountHFAHSF Salary in Advance
DARDaraja LoanSUPSuper Loan
JIBJibu LoanDIVDividend Advance
MOBMobile LoanJEWJewel Account

Hazina Sacco Members’ Welfare Fund

This benevolent fund covers the principal member, spouse, children, and biological parents.

Each member contributes Ksh. 200 per month to the Welfare Fund.

The benefits of the fund to the beneficiaries are as follows:

Principal Member     – Ksh. 100,000

 Spouse                     – Ksh. 75,000

 Child                        – Ksh. 50,000 (for two children in a year)

 Biological Parents    – Ksh. 30,000

Members must fill out the Benevolent Fund Nominee Form, attach supporting documents, and submit it to Hazina Sacco. An administrative fee of Ksh.20,000 is charged on account claim of Ksh.100,000 per year.


  1. i) A member becomes eligible for this benefit after six months of contribution
  2. ii) Each member is to be considered independently in cases where a member and the spouse are members.
  • iii) Children are considered from the date of birth notification to 25 years of age.
  1. iv) Death certificate(s) should follow within one month after death notification, failure to which the payment will be deducted from the member’s deposits or salary.
  2. v) 50% of the amount contributed to the welfare fund will be refunded to a member who has never claimed welfare benefit. Refund will be made at the time of withdrawal from the Sacco.
  3. vi) If a member is found to have defrauded the Sacco on any welfare claim, the amount paid will be deducted from the member’s deposits or any other payment due. The member will also be required to pay a penalty of ksh.20,000.