Tembo Savings & Credit

Co-operative Society Ltd

With You All The Way.......Milele

Co-operative Bank Class A Share

Co-op Bank Class A Shares Application Form

Tembo Sacco delegates held a Special delegates Meeting on Friday 11th September and made the following special resolutions:

  1. To sell Class A Co-operative bank shares owned by Tembo Sacco to members at Ksh.10 per share
  2. Tembo Sacco to hold the shares bought by members in trust for them until such a time that the shares will be opened up to trade in the Nairobi Stock Exchange
  3. 3. To retain all the surplus made from the transaction in the society’s reserves for purposes of the society’s growth

Following the resolutions Tembo Sacco board wishes to inform all our members that the shares have been floated for sale with immediate effect under the following conditions:

  1. Only members who were in the members register by 11th September 2015 are eligible to buy
  2. Shares will be sold in multiples of Ksh.1,000 and the minimum number of shares one can purchase is 1,000 (Equivalent to Ksh.10, 000)
  3. No single member will be allowed to purchase more than 500,000 shares
  4. Shares will be sold on first come first served basis
  5. The sale will close on 31st December 2015

We encourage our members to take the opportunity to invest for the future. Co-op bank class B shares are trading in the Nairobi Stock Exchange at between Ksh.18 to ksh.20.Therefore our offer is discounted by almost 50%

Please also note that class A shares are not trading in the Stock Exchange, and currently can only be held by a co-operative. This is the reason why Tembo Sacco will continue to hold them in trust for the members until such a time that they will be opened up for trade in stock Exchange. However, members will be allowed to trade the shares among themselves. What do you stand to gain as a member by purchasing the shares?

  1. You will be buying the share at a highly discounted price and you stand to gain immensely when the shares are finally opened up to trade in the Stock Exchange (Capital gain)
  2. You will enjoy dividends declared by Co-op bank annually. It is worthwhile to note that you will enjoy the same dividend per share as somebody holding class B share whose market price is between Ksh.18 and Ksh.20
  3. You will earn bonus shares whenever offered by Co-operative bank
  4. The shares can be used as security for loans in Tembo Sacco

How does the society gain from the sale of the shares?

The society’s liquidity will improve leading to more funds available to members at reasonable interest rates, hence more profitability and growth. The purpose of selling the shares is to improve the liquidity of the society; therefore, we will not advance members loans for purpose of buying the shares. Please also note the following:

  1. When the shares are finally opened up to trade in the Stock Exchange, shares bought by members and therefore held in trust for them by the Sacco will be given the first priority to go to the market
  2. The shares bought are transferrable to nominee (elected beneficiary) in case of death