Welcome to Nafasi Multi-Purpose Cooperative Society Limited
Creation of Funds
Statutory funds created by NAFASI:
To ensure that NAFASI meets its mandate, the cooperative creates funds to maintain reserves that will
facilitate the capitalisation of the different enterprises that it runs for the members.
In accordance with the Cooperatives act CAP 112 (1991) and the cooperatives societys regulations (1992), NAFASI operates the following funds.
It will be mandatory upon
NAFASI to contribute
10% of net gains/surplus;
this money is not accessible to the societys members until its dissolution albeit the
registrar may sanction the society to contribute less depending on the prevailing financial
circumstances of the society (Sub regulation 34(1&2) in the Coop Society regulations, 1992).
The society will contribute
5% of its surplus to this fund.
Currently the Min. of cooperatives is not keen on this however because of our planned credit
function a similar fund will be formed to meet the capital adequacy requirements for lending.
The society is mandated to contribute
1% of its gross turnover to the fund,
50% of the contribution is to be remitted to an apex body to which the society
will belong and the remaining half will be retained by the society.
NAFASI is mandated to allocate not more than
5% of its surplus to
this fund to enable the society pay off members who would like to liquidate their stake from
NAFASI is mandated to distribute dividends to its members and the value of the dividend income should not exceed more than 10% of the societys share capital. Nafasi will create more funds depending on the different functions that need to be capitalised over the life of the society.