Housing Co-operative Societies is one of the types of co-operative societies registered in Kenya under Cap 490.

1. GOVERNANCE STRUCTURE IN
HOUSING CO-OPERATIVE
SOCIETIES AND
ROLES AND RESPONSIBILITIES OF
BOARD MEMBERS
STEPHEN MWANGI
Co-operative Officer

2. Provide members living accommodation at a fair and
reasonable price.
Provide facilities for physical and cultural recreation
and all such other matters as are usual, customary and
desirous for building estates, blocks of flats or single
dwellings.
OBJECTIVES OF HOUSING
COOPERATIVES

3. Raise funds by accepting deposits from
members and by contracting for loans from
non–members by issuing debentures or
mortgaging its property or by any other means
up to a maximum amount to be decided by the
General Meeting
SPECIFIC OBJECTIVES

4. Lend money to members for the purpose of;
(a) Acquisition of living accommodation for
themselves,
(b) For income generating purposes on such
terms and with such security as the Management
Committee may from time to time determine or
guarantee loans and advances to members for
similar purpose.
SPECIFIC OBJECTIVES

5. Undertake building operations by such means either
directly or indirectly as the committee may decide.
Acquire supplies of building and similar materials and
machinery of all kinds including household furniture
and equipment for use in building or for sale or hire
to members.
SPECIFIC OBJECTIVES

6. Acquire and relinquish lands, buildings and
rights over land and buildings by purchase,
lease or any other means as may be necessary
for the attainment of these objects.
Employ architect, builders, contractors, issue
plans negotiate and contract for services for
light and power, water drainage, roads, and
generally do all such things as are necessary and
customary for the acquisition of land and its
development for housing purposes.
SPECIFIC OBJECTIVES

7. Enter into contracts with members for the
sale or lease of land and building acquired by
the society in pursuance of its objects on
such terms and conditions as may from time
to time be determined.
Ensure progress of members and society
through continuous education programmes
on proper use of credit, reduction of
poverty, human dignity and co-operation.
SPECIFIC OBJECTIVES

8. To apply the co-operative principle of
cooperation among cooperatives in order to
promote members’ interests and in furtherance
to the objects of the society affiliate to the
relevant National Co-operative union and the
Apex society.
The society may do acts and things that are
permissible under the Act, rules and these By-
laws
SPECIFIC OBJECTIVES

9. Sub Sector State Corporations/Commissions
 Sacco Societies Regulatory Authority (SASRA)
 Ethics Commission for Co-operatives (ECCOS)
 Co-operative Tribunal
 New Kenya Cooperative Creameries (New KCC)
 The Co-operative College which was a National Co-
operative Organization has been upgraded to a
University College
Structure of Co-operative Movement
in Kenya

10. The co-operative movement in Kenya is organized into four-tier
system consisting of;
 Apex-Co-operative Alliance of Kenya
 Tertiary (NACOs)-KUSCCO, NACHU-National Co- operative
Housing Union , Coop Bank, CIC, CCHL-Cooperative
Communication Holdings Ltd , KERUSSU-Kenya Rural SACCO
Societies Union, KPCU, KCCE-Kenya Co- operative Coffee
Exporters Ltd, CODIC-Co-operative Development and
Information Centre Ltd, New KCC.
 Secondary (County/District Unions) and
 Primary
Structure of Co-operative
Movement in Kenya

11. AGM/SGM
MANAGEMENT
COMMITTEE
SUPERVISORY
COMMITTEE
STAFFSUB
COMMITTEES
PRIMARY CO-OPERATIVE STRUCTURE

12.  Consider and confirm the minutes of the previous General
Meeting.
 Consider reports of committees, the Commissioner or his
representative and the audited accounts and the society‘s
activities during the past financial year.
 Consider and resolve on the manner in which any available
surplus shall be distributed or invested, subject to the Act and
rules.
 Elect or remove members of the Committee and the Supervisory
Committee, subject to the Act, Rules and these by-laws.
ROLE OF ANNUAL GENERAL
MEETING

13. Fix the indemnity for the elected committee members and
management staff.
Consider recommendations from the Committee, and
supervisory committee on suspension and expulsion of
members.
Consider appeals against refusal of membership by the
Committee.
Confirm or reject admission of new members by the
committee.
Fix the maximum liability which the society may incur in loans
and deposits from both members and non-members.
ROLE OF ANNUAL GENERAL
MEETING

14. Approve the estimates of income and expenditure
for the financial year following the General
Meeting.
Fix the honoraria, if any, for the committee.
Decide on the management structure, including the
establishment of branches to facilitate efficient and
cost effective delivery of services to members.
Appoint bankers, auditors and advocates of the
society for the ensuing year.
ROLE OF ANNUAL GENERAL
MEETING

15. Formulate rules for tenancies, conditions for loans
and all matters relevant thereof.
Affiliate the society to National Co-operative
Organization for Housing societies;
Receive report of the supervisory committee.
Transact any other business of the society for which
notice has been given to members in the manner
prescribed in these by-laws.
ROLE OF ANNUAL GENERAL
MEETING

16. Is the governing body of the society, elected
from the general membership and consists of
a minimum of 5 and a maximum of 9
members.
It includes the Chairman, Vice chairman,
Treasurer and Secretary all of whom are
elected by the Committee from amongst the
members of the Committee.
ROLE OF THE BOARD OF DIRECTORS

17. Observe in all its transactions the Act, the Rules,
these by-laws and prudent business practices.
Generally direct the affairs of the society.
Act upon all applications for membership.
Ensure that true and accurate records and accounts
are kept of the society’s money, and its properties,
capital reserves, liabilities, and income and
expenditure;
ROLE OF THE BOARD OF DIRECTORS

18. Prepare budgets for presentation at the General
Meeting;
Propose to the General Meeting the amount and kind
of surety bond, or other security, which shall be
required from any member of the committee or
employee having custody of or handling funds or
property of the society;
ROLE OF THE BOARD OF DIRECTORS

19. Determine and recommend to the General Meeting the interest
rates on loans, deposits, etc;
Cause the audited accounts to be displayed in a conspicuous
place at its registered office and branches;
ROLE OF THE BOARD OF DIRECTORS

20. Lay before the General Meeting audited accounts,
balance sheet and final accounts
Recommend to the General Meeting the dividend
rate to be paid on shares;
Fill through cooption vacancies occurring in the
committee between General Meetings;
ROLE OF BOARD OF DIRECTORS

21. Recommend investments of the society;
Authorize the conveyance of property;
Authorize borrowing and lending operations;
Designate a depository or depositories for the
funds of the society;
ROLE OF BOARD OF DIRECTORS

22. Employ and fix the remuneration of the employees in
accordance with the terms and conditions of service
as approved by the Commissioner;
Impose fines;
Approve transfer of shares between members;
Supervise the recovery and collection of loans and
recommend to the General Meeting the write off of
uncollectible debts to the General Meeting.
ROLE OF BOARD OF DIRECTORS

23. Perform or authorize any actions consistent with the
Act, the Rules and these by-laws, unless specifically
reserved for the General Meeting;
Provide adequate budget for education and training
of members, the committee and staff.
Perform such other duties as the General meeting
may from time to time direct;
ROLE OF THE BOARD OF DIRECTORS

24. Sub-committees consist of persons drawn from
the management committee.
The Committee may delegate to the sub -
committees some of its duties under the by-laws
as it deems fit.
The sub-committee convenes as directed by the
committee.
SUB-COMMITTEES

25. EDUCATION COMMITTEE
The Education Committee consists of three members including
the Vice-Chairman who serves as its Chairman. Its duties:
a) organize education programmes for members, committee
members, staff and the general public.
b) ensure that both the Committee members and the staff are
well trained and prepared for the tasks they are entrusted with
at the society.
c) create cooperative awareness to the general public.
TENDER COMMITTEE
Tender committee shall consist of all the members of committee
and any other officer(s).
SUB-COMMITTEES

26. To preside at meetings of the members, Committee
meetings and joint meetings with the Supervisory
Committee,
To Sign all society’s documents,
To perform such other duties as he may be directed to
perform by the Committee, not inconsistent with
provisions of the Act, the Rules and these by-laws.
THE CHAIRMAN

27. Duties of the vice chairman are;
a) To perform the duties of the Chairman during his
absence,
b) To preside at education committee meetings,
c) To perform such other duties as he may be
directed by the Committee.
THE VICE CHAIRMAN

28. To cause minutes of the general meetings,
Committee meetings, and joint meetings with the
Supervisory Committee to be recorded,
To ensure that notices of meetings are prepared and
sent,
To ensure that the society’s correspondence is
promptly and correctly attended to,
To keep the society seal under lock and key.
To perform such other duties as may be directed by
the committee.
HONORARY SECRETARY

29. To ensure that a proper record is kept of all monies
received and paid out by the society, its assets,
liabilities, capital reserve and its income and
expenses;
To ensure the safekeeping of the society’s money,
securities and books of accounts;
To ensure that all payment and expenditures are
dully authorized;
TREASURER

30. To ensure that within ten days after the closure of each
month, a financial statement showing the condition of the
society finances at the end of the preceding month is prepared
and submitted to the Committee for discussion;
To ensure compliance with all directions of the Committee, the
Act, the Rules and these by-laws on all financial matters,
To ensure that sufficient funds are available for loans to
members,
To perform such other duties as may be directed by the
committee.
TREASURER

31. DELEGATION TO EMPLOYEES
The committee may delegate to any employee of the
society such duties as it deems fit.
Nothing in (a) above shall absolve the Committee from
its responsibility of running the affairs of the society in a
proper and business like manner.
STAFF

32. The supervisory committee does not perform the duties
or exercise any of the powers of the committee.
Meetings of the supervisory committee are held
quarterly, save for joint meetings between its members
and those of committee.
All supervisory committee members should have
qualifications similar to those of committee members.
SUPERVISORY COMMITTEE

33. Members of the Supervisory Committee may be
required to have at least some proven knowledge of
accounts.
Members of the supervisory committee may be
removed by a resolution of the general meeting.
SUPERVISORY COMMITTEE

34. Countercheck, the effectiveness of the society’s
internal control systems through:-
1. Carrying out investigations as may be necessary for
the well being of society and members in general and
verifying the accuracy of the transactions of the
society.
2. Checking if cash and bank accounts are reconciled in
good time.
SUPERVISORY COMMITTEE

35. 3. Establishing whether the management of
the society use managerial tools i.e. budgets,
trial balances, economic reports, long term
plans and others and thereafter making
necessary recommendations to the committee.
SUPERVISORY COMMITTEE

36. Preparation and presentation of periodic reports
to the Management committee during joint
meetings.
Presentation of Annual Report to the General
Meeting.
Submission of its reports to the Commissioner.
SUPERVISORY COMMITTEE

37. The supervisory committee shall be held liable
for any loss incurred due to their negligence in
performing their duties.
SUPERVISORY COMMITTEE