What is the difference between Alpha deposits and Share Capital ?

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Alpha Deposits are the monthly contributions a member pay towards the Sacco. Individuals require a minimum of Ksh. 1,000 contribution per month; groups ksh. 5,000 and Corporates Ksh. 10,000. This can be used as either security to members loans or guarantee other members. Interest rebate is earned on alpha deposit annually and calculated on pro rata basis. Upon exit from the Sacco the member can access refund of the alpha deposit as long as there is no outstanding or guaranteed loan.

On the other hand, share capital is the minimum shareholding that every member must hold with the Sacco. Shares are Non- refundable and cannot be withdrawn even on exit from the Sacco but can be transferred to another member of the Sacco. This cannot be used as security on loan. Each member must meet the minimum share capital requirement. For example Individuals and groups require a minimum of Ksh 25,000 in share capital which is Equivalence of 50 shares at a cost of KES 500 per share; and Corporate require a minimum of Ksh. 50,000 in share capital. Dividend is earned on Share capital annually and calculated on pro rata basis.

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