Member loans
Before money ever leaves the club for an outside investment, it's there for members as a loan. The interest stays inside the collective pot rather than going to a bank.
- Your own savingsMaximum loanNo one can borrow more than they've put in. The ceiling limits itself.
- 4 minimumGuarantorsEvery loan is backed by four other members, not one official's word.
- 6% flat, 3 monthsInterest, standard termA simple flat rate over a fixed term. It never compounds against the borrower.
- +1 month at 9%One extensionOne extension, at a higher rate, before default consequences apply.
Constitution, Article 6.1 (Loan Policy), with the members' later rate change from the constitution's original 8% extension rate to 9%.
Outside investments
Money-market funds, treasury instruments and equities. Every placement starts as a formal proposal with real research behind it, not a tip someone heard. Anything above KSh 50,000 needs a majority vote of the full membership before it moves, and every decision is kept time-bound so research doesn't quietly turn into delay. A strategic investment plan is finalised before each financial year starts, which runs 1 April to 31 March.
Constitution, Article 6.2 (Investment Policy) and Article 5.1 (Financial Year).
Exit terms, set in advance
A member's share isn't improvised on the way out. The terms depend on how and when they leave, and were agreed before anyone needed them.
- Principal + 50% interestEnd-of-year exitLeaving at the natural break keeps half the interest earned.
- Principal onlyMid-year exitLeaving mid-cycle returns what was put in, no interest.
- Forfeits earningsExpulsionRemoved for cause, a member keeps their principal but not the interest.
Constitution, Article 8 (Exit and Dissolution).