Section 59 of Sacco Societies Act CAP 490B: Protection of deposits

(1) The Deposit Guarantee Fund shall provide protection for members' deposits, but not shares, up to an amount of one hundred thousand shillings in respect of each member.
(2) The amount being the aggregate credit balance of any accounts maintained by the member to a Sacco society, less any liability of the member to the Sacco society, shall be a protected deposit.
(3) A member's deposits shall be used to offset any liabilities owed by the Sacco society under liquidation including any liability under a loan guarantee by such member.
(4) If a member has outstanding loans or credit facilities owing to a Sacco society. the member or guarantor's deposits as the case may be, shall offset the loan or credit facility before the member or guarantor may receive any net from the members' or guarantors' protected deposits;
(5) A member of a Sacco society may upon the society becoming insolvent, lodge a claim with the Authority, in such form as the Authority may approve, for payment to him out of the Deposit Guarantee Fund of any protected deposits which he would but for the insolvency, have been paid had he demanded from the insolvent society.
(6) The Board of Trustees may, before paying any claim lodged under subsection (3) require the claimant to furnish such documentary proof to support such claim as may be prescribed by the Authority.
(7) The Board of Trustees may refuse to make any payments to any person who in its opinion had any responsibility for, or may have benefited directly or indirectly from the circumstances leading to, the Sacco society becoming insolvent.
(8) The Board of Trustees may at any time cause inspection to be carried out to ascertain the type, number and value of the protected deposits in any Sacco society.
(9) Upon payment of protected deposits from the Deposit Guarantee Fund, the Board of Trustees shall be entitled to receive from the Sacco society or its liquidator, as the case may be the amount paid from the Deposit Guarantee Fund.
(10) Notwithstanding the provisions on any other written law for the time being in force—
(a) a claim for payment of a protected deposit by a creditor of a Sacco society shall not be brought after the expiry of two years from the date of publication of commencement of such payment by the Board of Trustees;
(b) a claim for payment of a dividend by a creditor of Sacco society shall not be brought after the expiry of one year from the date of commencement of such payment by the Board of Trustees.
(11) Subsection (10) shall not apply to a person who has, for reasons beyond his control and to the satisfaction of the Board of Trustees, been unable to make his claim within the said period.