UHIFADHI WELFARE BY- LAWS

UHIFADHI WELFARE BY- LAWS 1

Table of contents Contents Table of contents... 2 UHIFADHI WELFARE BY- LAWS... 5 1. Name and area of operation... 5 2. Registered office and postal address... 5 3. Definitions and interpretations... 5 4. Objectives... 6 5. Principles and values... 6 6. Core values... 7 7. Membership... 7 7.1. Qualification for Membership... 8 7.2 Application for Membership... 8 7.3 Admission into Membership... 8 7.4 Refusal of Membership... 8 7.5 Rights of Members... 8 7.6 Obligations of Members... 9 7.7 Member s Personal Statement... 9 7.8 Termination of Membership... 9 7.9 Suspension and Expulsion... 10 Office bearers... 10 Regional representative... 10 Members... 10 Conditions for Suspension... 10 7.10 Payment on Termination of Membership... 11 8. Election of office bearers... 11 8.1 Duties of office bearers... 12 Chairperson:... 12 Deputy-chairperson... 12 Secretary... 12 Deputy Secretary... 13 Organizing secretary... 13 Deputy organizing secretary... 13 Treasurer... 13 2

Regional representatives... 14 9.0 Management... 15 9.1 Patron:... 15 9.2 Trustees:... 15 9.3 Central Management Committee... 16 Functions of the Central Management Committee... 16 9.4 Finance Planning and Development Sub-Committee... 17 Functions of the Finance Planning and Development Committee... 17 9.5 The Audit Sub Committee... 17 Functions of the Audit Sub Committee... 17 9.6 Ad-hoc Sub-Committee... 18 Functions of Ad-hoc Sub-Committee... 18 9.7 Terms of office for Office bearers.... 18 10. Meetings... 18 10.1 General Meetings... 18 10.2. Timing of General Meetings... 19 10.3 Notice of General Meetings... 19 10.4 Functions of General Meetings... 19 10.5 Monthly meetings:... 19 10.6 Notice of Monthly meetings... 20 11. FUNDS... 20 11.1 Source of funds... 20 11.2 Accounts Signatories... 21 11.3 Refunds... 21 11.4 Calculating the refund... 21 11.5 Books of accounts and documents... 21 11.6 Inspection of accounts and list of members... 22 11.7 Financial year... 22 11.7 Benefits/deficits... 23 12 Types of benefits... 23 12.1Loans... 23 Normal loan... 23 Emergency loan... 23 Ill health loan... 23 Required documents... 24 12.2 Security for loans... 24 3

12.3 Loan repayment... 25 12.4 Bereavement.... 25 12.5 Medical... 25 12.6 Discounted arrangements... 26 12.7 Corporate products or services... 26 12.8 Retirement... 26 12.9 Enterprise and Investments... 26 13. Auditor... 26 14. Amendments... 27 15. Miscellaneous:-... 27 15.1 Common Seal:-... 27 15.2 Disputes Resolution:-... 27 15.3 Acquisition of by-laws:-... 27 15.4 Adoption of the By-laws... 28 4

UHIFADHI WELFARE BY- LAWS 1. Name and area of operation This Association shall be called UHIFADHI WELFARE ASSOCIATION herein after, referred to in these by-laws as the Association and its area of operation shall be within the Republic of Kenya. 2. Registered office and postal address (a) The registered office of the Association shall be at Kenya Forest Service headquarters Karura, Off Kiambu Road in Nairobi County and its postal address shall be 30513-00100 Nairobi. (b) Notice of any change of postal address shall be given to the Registrar of Society herein referred to as the Registrar within thirty (30) days of such change. 3. Definitions and interpretations In these by-laws, unless the context otherwise suggests words or phrases shall be defined and interpreted in accordance with the Association's Constitution. In these by-laws save as otherwise expressly stated; Act means the Societies Act, Cap 108 Laws of Kenya. Central Management Committee mean members elected in a duly convened General Meeting to govern the business of the Association in accordance with these by-laws herein referred to as the committee. Deposits shall mean a sum of money received or paid on terms under which it shall be repaid, with or without interest or premium, and either on demand or at a time or in circumstances agreed by or on behalf of the person making the Association to receive it at the risk of the Association receiving it. Dividend means members share of the surplus of the Association which is divided amongst its members. Member includes a person admitted to membership after registration in accordance with the by-laws. 5

Shares means the amount represented by a member s portion in the equity of the Association as a co owner. "Regions" means all the 47 Counties, Kenya Forestry College Londiani and Kenya Forest Service Headquarters. "General Meeting" means the Annual General Meeting or Special General meeting. Vision To be the best welfare association in offering excellent mutual support to members for self development and harmonious life. Mission To offer mutual support to members and promoting harmonious living culture amongst members specifically in times of need. 4. Objectives (a) To promote staff personal growth and development. (b) To foster a spirit of mutual help and goodwill among members hence promoting communal harmony and national integration. (c) To provide financial assistance in the event of sickness or death of a member, his/her nuclear family, and death of member s parents. (d) To undertake such other lawful acts incidental or conducive to the attainment of the Association s objectives including the general welfare of the members and their families. 5. Principles and values (a) Voluntary and open membership; The Association shall always be guided by the principle of voluntary and open membership in its member recruitment drive without political, ethnic, religious, gender or social discrimination. (b) Democratic member control; 6

The Association shall be fully controlled by members who will have equal voting rights on the basis of one member one vote. (c) Economic participation by members; Members shall contribute towards the capital of the Association and share in the results of its operations. (d) Autonomy; The Association shall operate on mutually acceptable terms with its stakeholders but will ensure its autonomy is maintained (e) Co-operation among associations; In order to serve the interests of its members and the community, the Association shall actively co-operate with other like-minded associations locally, regionally, nationally and internationally. 6. Core values (a) Integrity (b) Openness, Transparency and Honesty (c) Quality Service (d) Social Responsibility (e) Equity (f) Team Work 7. Membership The membership of the Association shall be voluntary and open to; a. KFS Board members b. Permanent and pensionable Kenya Forest Service staff. c. Kenya Forest Service staff under contract of more than one (1) year. d. Former Kenya Forest Service staff. e. Ministry in charge of Environment and Natural Resources' staff. 7

7.1. Qualification for Membership A person who possesses the following qualifications shall be eligible for membership; (a) Person of not less than eighteen (18) years of age. (b) Person of good character and of sound mind. (c) Former Kenya Forest Service staff. 7.2 Application for Membership Every applicant for membership shall complete a prescribed application for membership form (Annex...). 7.3 Admission into Membership a. An applicant shall be admitted to membership on application upon payment of a nonrefundable registration fee of Kenya Shillings Two Hundred (Ksh. 200/-) b. Upon admission, member s name shall be entered into the membership register and the membership number and card issued which shall contain the following details; (Annex...). Name National ID no. IPPD No. Membership no. c. The CMC shall update the register of membership and be presented before the delegates during the Annual General Meeting. 7.4 Refusal of Membership The Committee shall decline admission to any applicant by giving reasons for the rejection in writing. The applicant has the right of appeal and the decision of the CMC shall be final. 7.5 Rights of Members a) Participate in decision making at all general meetings of the Association and vote through delegates. b) Elect or be elected to organs of the Association. Each member shall have one vote irrespective of the member s total share holding. 8

c) Enjoy the use of all the facilities and services of the Association subject to the Association s by laws d) All legitimate information relating to the Association, including, internal regulations, registers, minutes of general meetings and supervisory committees reports, annual accounts, inventories and investigation reports, at the Association s registered office or through any other communication as approved by the Annual General Meeting. e) Right to submit projects, initiatives or proposal to the committee for improvement of the welfare. f) Right to pass a vote of no confidence on non-performing officials as stipulated in the constitution. This vote shall only be carried if supported by at least three quarters (3/4) of the total delegates. g) To withdraw their savings and deposits (less any liability or obligation on their account and no outstanding collaterals or guarantees on other member s loans), from membership at any time. h) Withdrawal claims for deposits shall be processed sixty days after receipt of the withdrawal form. 7.6 Obligations of Members (a) Observe and comply with all the Association s by laws and decisions taken by the relevant organs of the Association. (b) Pay up for shares or make any other regular payments provided for in these By laws. (c) Meet the debts of the Association in case of insolvency in accordance with the provisions of the Act. (d) Attend meetings at the Regional levels and take part in decision making. 7.7 Member s Personal Statement The CMC shall endeavour to ensure that member's updated statements are accessible. 7.8 Termination of Membership (a) Upon Member s Death (b) Voluntary withdrawal (c) Expulsion from membership (d) Transferring all the shares to another member 9

(e) Acting contrary to the provisions of the relevant Acts, Association s Constitution and By-laws. 7.9 Suspension and Expulsion Office bearers The CMC shall have powers to suspend any office bearer whom it may have reasonable cause to believe is not properly accounting for any of the funds or property of the Association. The CMC shall appoint an adhoc subcommittee to investigate the allegations against the office bearer. The CMC shall deliberate and submit their recommendations to the trustees for further action. If the officer is found culpable then the trustees shall make their decision to the CMC for implementation, and later presented to the Annual general meeting for adoption. Regional representative In the event that a delegate is transferred from one region to another, the CMC shall appoint a replacement after consultation with the members of the affected region. Such an appointee shall serve for the remaining period to the next regional election Members The CMC shall have powers to suspend any member whom it may have reasonable cause to believe has committed any offence punishable by suspension or expulsion. The CMC shall appoint an adhoc subcommittee to investigate the allegations against the member. Based on the findings of the subcommittee, the CMC shall either lift the suspension or recommend expulsion to the general meeting. The general meeting shall have full powers to decide on what further action should be taken against the office bearer or member. Conditions for Suspension The Committee shall suspend a member subject to the advice of the Ad-hoc committee on discipline where the member; 10

(a) Fails to fulfil his/her obligations to the Association as stated in these by-laws, general internal regulations, a resolution of the general meeting, provided that such a member has been called upon to do so, but has failed to comply. (b) Is charged and is convicted in a court of law for a criminal offence for a period of more than six (6) months.. (c) Acts in any manner prejudicial to the interests of the Association. (d) No member shall remain in suspension for a period of more than six (6) months unless under unavoidable circumstances. (e) Engage in the embezzlement of Association's funds. Such persons shall not only be expelled but also be made to bear every losses incurred through the existing dispute resolution mechanisms including legal engagement. 7.10 Payment on Termination of Membership On termination of membership, a person shall be paid the following less any expenses or outstanding obligations; (a) Members deposits (b) Any dividends and interests due prior to the termination date. 8. Election of office bearers The office bearers shall be elected at an Annual General meeting and shall comprise of the following: (a) Chairperson (b) Deputy Chairperson (c) Secretary (d) Deputy Secretary (e) Organizing Secretary (f) Deputy Organizing Secretary (g) Treasurer (h) Regional Representatives (47 representing each county, 1 from Kenya Forest Service Headquarters and 1 from Kenya Forestry College). All of whom shall be fully paid up members of the Association. 11

NB:- The Association shall consider; Track record, regional balancing, gender representation as is practicable. 8.1 Duties of office bearers Chairperson: a) Shall convene and preside over all meetings of the association unless prevented by illness or other sufficient cause the Deputy-Chairman shall assume this duty.. b) Shall be a signatory to the account of the association, and sign all other documents on behalf of the association. c) Shall be the chief spokesman of the association at all meetings to which the association is invited. d) Shall see to the implementation of the Central Management Committee decisions, and shall concern himself with any other business as may be directed to him by the Central Management Committee. e) Shall, in consultation with the Central Management Committee nominate members of ad-hoc committees. f) Mobilizing resources for the Association. g) The Chairman may attend and participate in any of the sub-committee meetings except the Audit Subcommittee meetings. Deputy-chairperson a) Shall deputize the chairman in the performance of his duties and shall perform such functions as may be assigned to him by the chairman. b) Whenever the position of the chairman becomes vacant by reason of incapacitation, resignation, impeachment and removal from office, the Deputy-chairman shall assume office as the chairman to complete the unexpired term of the chairman. c) Whenever the position of the Deputy-chairman becomes vacant by reason of incapacitation, resignation, impeachment and removal from office, his position shall be filled during the next Annual General Meeting or a Special General Meeting. Secretary a) Shall deal with all correspondence of the Association 12

b) In case of urgent matters where the Association or the Committee for the time being in charge of the matter at hand cannot be consulted, the Secretary shall consult the Chairperson and if (s)he is unavailable, the Treasurer. The decision reached thereafter shall be subject to ratification or otherwise at the next general meeting. c) Shall issue notices convening all meetings of the Association. d) Shall be responsible for keeping minutes of all such meetings and preservations of all records of proceedings of the Association and its committees. e) Ensuring the returns of the Association are filed as per regulations & laws f) Performing such other duties as may be specifically assigned by the Association or any of its committees. Deputy Secretary i. Assist the secretary ii. Perform the duties of the secretary in his/her absence or transferred Organizing secretary a) Shall organize all events and corresponding meetings for the Association b) Perform any other duties assigned by the Committee c) In charge of public communication. Deputy organizing secretary i. Assist the organizing secretary ii. Perform the duties of the Organizing secretary in his/her absence or transferred Treasurer a) Managing the Association's accounts and keeping proper books of accounts b) Receiving for, and or, on behalf of the Association, any money due to it, and issuing receipts for the same. 13

c) Making payments for disbursements and other expenses as may be incurred by the Association d) Advising the Association and any of its committees as may from time to time be necessary on the financial status of the Association. e) Making such other enquiries as maybe required by the Association over any of its investments, finance or accounts with regards to the Association funds, assets, liabilities or investments. f) Performing such other duties as may be specifically assigned by the Association or any of its committees. g) Ensure prudent management of financial resources of the Association h) Collect owed subscriptions and other monies accrued to the association i) Prepare financial statements for auditing purposes and Annual General Meetings. Regional representatives shall: a) Represent the interests of members of the regions in Annual General Meeting and other welfare meetings. b) Adopt and approve proposals of the Central Management Committees in the Annual General Meeting and special Annual General Meeting. c) Participate in all elections d) Elect, suspend and remove committee members provided that proper procedures have been followed. e) Consider and decide upon the maximum borrowing powers of the Association as well as for its members. f) Consider and approve estimates of income and expenditure of the financial year g) Appoint the Association's auditors h) Act as a link between the members in the regions and the executive in all matters i) Confirm the minutes of the previous meetings j) Consider appeals against the expulsion of members and refusals of membership by the committee 14

9.0 Management The Management of the Association shall comprise of; 9.1 Patron: The Association shall have a Patron whose role shall be to oversee the overall operations of the Association. The Patron shall be the Chief Executive Officer of Kenya Forest Service. a) The Patron may perform the following for the Association; i. Open or close Association's meetings ii. Observe Association's meetings during CMC and AGMs. iii. Offer advice to the Association and shall not make decisions. b) The Patron will not have any Executive duties in the Association. 9.2 Trustees: a) The trustees shall have a supervisory role over the management of the Association b) The Association shall have Trustees comprising of a maximum of four elected trustees plus the patron who will be the chair. c) The elected trustees will serve for a period of three years and shall be eligible for a reelection of one extra term. d) The First Trustees of the Association shall be the first registered; Chairman and Treasurer of the Association. The Association shall have no power whatsoever to remove any of the First Trustees or to amend this provision. All vacancies occurring by resignation or death of any of the First Trustees shall be filled at the next Annual General Meetings. e) The Trustees shall safeguard the Associations assets; Land, buildings and other immovable property and all investments and securities which shall be acquired by the Association shall be registered in the name of Association. f) All vacancies occurring by resignation or death of any of the Trustees shall be filled at the next Annual general meeting or through a special general meeting. 15

g) The Trustees shall have an oversight role over association s expenditure. h) The Trustees shall act as the liquidators of the Association. i) The Trustees shall handle Appeal cases received from the CMC concerning office bearers and make recommendations to the Annual General Meeting for final decision. 9.3 Central Management Committee (a) The Central Management Committee shall be elected at the Annual General Meeting and shall consist of all the office bearers. (b) The Central Management Committee shall appoint sub-committees which include; i) The Finance, Planning and Development Sub-Committee ii) The Audit Sub-Committee iii) Ad hoc Sub-Committee Functions of the Central Management Committee a) Review or oversee treasury matters such as liquidity, fixed income investments, borrowings, financial exposure, dividend policy, and capital investments. b) Oversee loans and loan guarantees of third party debt and obligations. c) Required to seek authority from members with regards to key decisions, particularly those that may or can impose liability or obligation of any kind on the Association or any of its members. d) Establish and review strategic and operational plans. e) Establish policies/procedures and record decisions and actions on matters concerning the Association. f) Oversee the work of office staff. g) Ensure the Association keeps proper records, and complies with any relevant legislation and the organization s rules, regulations, constitution. h) Ensure that all finances are properly managed, that records are audited annually and that accountability requirements are fulfilled i) Monitor all activities by the Association with feedback contributing to the continuous improvement in governance and service delivery. j) Perform such other duties and responsibilities as are enumerated in and consistent with the constitution or as delegated by the members k) Appoint sub committees and employees on terms and conditions prescribed by them l) Recommend three names of external auditors and their remuneration to the Annual General meeting. 16

m) Provide Oversight of regulatory compliance, ethics and whistleblower channels. n) Put in place Risk Management Policies. 9.4 Finance Planning and Development Sub-Committee The sub-committee shall consist of the Deputy Chairperson, Treasurer, Secretary and two other members of the Central Management Committee. The Chairperson shall be the Treasurer of the CMC. Functions of the Finance Planning and Development Committee (a) Provide oversight of the investment functions of the Association; (b) Assist in evaluating investment, acquisition, joint venture and divestiture transactions in which the Association engages as part of its income generating activities from time to time; (c) Research and make enquiries on finance-related issues and inform the Association of its findings. (d) From time to time, as appropriate, the Committee will evaluate and revise policies for acquisition, enterprise services, joint venture and divestiture transactions. (e) Evaluate the execution, financial results and integration of completed investment, acquisition, enterprise services, joint venture and divestiture transactions. (f) Consider such other investment matters regarding the Association. (g) Perform such other duties and responsibilities as are enumerated in and consistent with the Constitution or as delegated by the members. 9.5 The Audit Sub Committee The audit sub-committee shall comprise of Deputy Chairperson, Deputy Secretary and one member of the Central Management Committee. Functions of the Audit Sub Committee (a) Ensure that internal controls are established by the Treasurer and reviewed by the auditor. (b) Review performance and findings of internal auditor and recommend remedial actions regularly and at least once in every three months (c) Review coordination between internal and external audit functions as well as monitor external auditor s independence and objectivity (d) Monitor choice of accounting policies and principles and ensure they are applied appropriately. 17

(e) Ensure reliable financial reporting, disclosures and compliance. 9.6 Ad-hoc Sub-Committee There shall be ad-hoc committees such as discipline and an electoral committee which shall be constituted as need arises. The ad-hoc committee shall be constituted by the Central Management Committee comprising of not more than three members amongst the Central Management Committee. Functions of Ad-hoc Sub-Committee The Sub-Committee shall handle matters other than finance and audit. 9.7 Terms of office for Office bearers. a) The office bearers shall hold office for a term period of three (3) years and can be renewable for one extra term. b) The members of the Central Management Committee shall upon election immediately enter into the performance of their duties until their successors have been elected c) The Association shall hold elections for all office bearers during the AGM or special AGM d) An office bearer may seek re-election from the members at the end of their tenure for an additional one term only. e) A member may also be nominated for a second term and may choose to accept or decline such nomination. f) In the event of mass resignation of the CMC the trustees shall appoint a care taker committee for a maximum of three months to oversee the functions of the Association until the office bearers have been duly elected. 10. Meetings 10.1 General Meetings The supreme authority of the Association shall be vested in the Annual General Meeting or Special General Meeting. 18

10.2. Timing of General Meetings (a) The Annual General Meeting shall be held every year within three (3) months (January-March) after closure of the financial year to hold elections and to undertake such other business as is laid down in these by-laws. (b) Special General Meeting shall be called when need arises to discuss specific issues of interest to members. (c) Any business not completed at the Annual General Meeting, may be taken up at a subsequent special General Meeting of the Association. 10.3 Notice of General Meetings (a) The general meeting shall be convened by giving at least twenty one (21) days written notice to the members. (b) The Secretary shall set out steps to publish the notice of the meeting and audited accounts through electronic media or any other appropriate channel as may be decided upon by the CMC. (c) All notices shall include a statement of the business to be dealt with. 10.4 Functions of General Meetings The General Meeting shall have the functions as prescribed in the Association's Constitution, these by-laws and any other applicable law. It shall: i. Consider and confirm the minutes of the previous General Meeting. ii. Consider and resolve on the manner in which any available surplus shall be distributed or invested, subject to these rules. iii. Elect or remove office bearers and the Committee subject to the Act and these bylaws. iv. Consider recommendations on expulsion of members and refusal of membership by the Committee. v. Fix the maximum liability which the Association may incur in loans and deposits from members. vi. Appoint auditors. vii. Transact any other business of the Association for which notice has been given to members in the manner prescribed in these by-laws. 10.5 Monthly meetings: The Central Management Committee shall hold monthly meetings every month. 19

The quorum will be the chairman, and four other members of the Central Management Committee. 10.6 Notice of Monthly meetings Seven day notice shall be circulated to all members detailing the agenda and accompanied by copies of items for discussions. 11. FUNDS 11.1 Source of funds (a)the Association shall have among others, the following sources of funds; i. Registration fees ii. Monthly subscriptions iii. Interest from loans advanced to members iv. Donations/Sponsors v. Investments and enterprises vi. Divesture vii. Penalties and fines. viii. Any other activity found appropriate by the Central Management Committee (b) Ex KFS staff shall deposit their contributions in the Bank account of the Association and banking slips presented to the treasurer. The Association shall negotiate with KFS to allow staff to remit their contributions through Check off system and shall reflect monthly deposits and cumulative amount. (c) No cash shall be accepted. (d) No payment or withdrawal shall be made without the Central Management Committee approval. (e) Notwithstanding 11.1 (d) above, a sum of float as determined during the Annual General Meeting may be kept by the Treasurer for petty cash payments of which proper account shall be kept. (f) A cash reserve amount shall be determined by the finance committee for the purpose of meeting requests for deposit withdrawals and other emergency payouts. 20

11.2 Accounts Signatories (a) The signatories to the Association accounts are Chairman, Treasurer, Secretary, Deputy Chairperson, Deputy Secretary and Deputy Organizing Secretary. (b) However, any three (3) of them can sign. (c) All payments or withdrawals shall only be done by the treasurer. (d) The funds of the Association shall be applied only for the purpose of carrying out the objectives of the Association and for the due administration of its business affairs. 11.3 Refunds (a) An ex member shall be entitled to a refund of applicable contribution less any expenses, liabilities and obligations. (b) This shall only apply to persons whose membership has been terminated on the following grounds, death, termination during probation, voluntary withdrawal and expulsion other than the reason of fraud or theft or embezzlement from Association 11.4 Calculating the refund a) The refund due to an ex member shall be Calculated as the sum total of his Contributions, investments made by the Association and his monthly contributions made up to the last month in which the deductions were effected so long as proper notification was made to the Association 11.5 Books of accounts and documents (a)minutes All business discussed and decided at all meetings shall be recorded by the secretary. Minutes of the meeting shall be signed by the chairperson and the secretary Minutes of a committee meeting shall be adopted after being proposed and seconded by the members who were present during the meeting. (b)membership Register A register of all members shall be kept by the secretary, which should reflect the following information; i. Full name and establishment number ii. Contacts; Physical address, Postal address, e-mail Address and telephone number. 21

iii. Membership number. iv. PIN & National ID and/or Passport number v. Date of admission into membership. vi. A list of nuclear family members and parents of the members for each member for purposes of Clause 12.4 vii. Next of Kin. viii. Termination date where applicable (c)books of Accounts: The Association shall maintain the following books of accounts; i. Cash book, ii. Ledgers, iii. Bank reconciliations, iv. Statement of financial position, v. Statement of cash flows, vi. Statement of comprehensive income, vii. Statement of changes in equity, viii. Member statements, ix. Files among others. The Association shall maintain all other books such as members register, assets register, receipts, and other accountable documents. 11.6 Inspection of accounts and list of members The books of account and all documents relating thereto and list of members of the Association shall be available for inspection during office working hours by any official or member of the Association, on giving not less than seven (7) days notice in writing to the Treasurer of the Association at the registered office. 11.7 Financial year The financial year for the Association shall run from 1 st January to 31 st December. 22

11.7 Benefits/deficits a) General surplus/dividends shall be paid out among paid up members in direct proportion to their contributions less of expenses, taxes & levies. b) General deficits shall be shared among all members equally, irrespective of their contributions inclusive of expenses, taxes & levies. c) For specific projects or investments which do not involve all members but are carried out through or by Association, the surplus/dividends shall be shared only between the specific members in direct proportion to their contributions less of Association facilitation fee of two per centum (2%), corporate expenses, taxes & levies. d) For specific projects which do not involve all members but are carried out through or by the Association, the deficits will be shared among those members in direct proportion of their contributions, corporate expenses, taxes & levies. 12 Types of benefits The Association shall provide the following benefits 12.1Loans The loan categories shall include; Normal, emergency and medical as described below: Normal loan Based on three times the member's deposits with considerations of 1/3 rule An interest of 0.84% per month. Repayable within a maximum of three years Processed within a duration of one month Emergency loan Based on ability to repay Availability of funds Payable within one year Processed within 2 days. An interest of 1% per month. Ill health loan Based on ability to repay Availability of funds Interest free 23

Payable within one year Processed within 2 days. Required documents Loan application form Latest certified pay slip A bank statement or M-pesa statement for a ex-kfs staff Three guarantors who should not be retiring within the loan repayment period. Evidence of hospital bill in case of ill health loans Guarantors for ex-kfs staff should be the serving KFS staff. Further, i. All loans shall be approved by Central Management Committee and shall be restricted to members only. ii. The Central Management Committee shall review the interest rates on loans whenever necessary. iii. All loans shall be applied on a prescribed loan application forms provided by the Association. iv. For purposes of members being considered for a loan his/her deposits shall be taken into account. v. No loan shall be made to any member in excess of two (2) percent of the Association's total share capital. 12.2 Security for loans (a) The credit committee shall ask for the security for all loans advanced to members. The shares, guarantees, deposits shall be taken as security. (b) Where there is, continued default to service the loans for a period of ninety (90) days, the credit committee shall offset the loans from the member's deposits and guarantors. (c) No Central Management Committee member shall act as an endorser or guarantor for the borrowers. 24

(d) At an appropriate time, the CMC shall engage an insurance company in view of cushioning the Association against unrecovered loans in case of death of a member with loan balance. 12.3 Loan repayment (a) A borrower may on any day when the Association is open for business repay his loan in whole or part prior to maturity. (b) At every meeting of the CMC the LOAN item shall be on the agenda. At the meeting the CMC shall present an up-to-date list of defaulters showing; i. Name ii. Account no. iii. Date of loan application iv. Date of last payment v. Unpaid balance on loan vi. No. of months of default vii. Borrower's share balance and security guarantors if any. (c) The CMC shall thereupon take action to collect the overdue accounts. (d) The maximum duration for loan repayment shall be as decided by the Finance and development committee. (e) All loans shall be insured and the rate shall be determined by the CMC and approved by the AGM. 12.4 Bereavement. The Association shall support the bereaved members as follows: Principal member 50,000, one spouse and to a maximum of five (5) children (up to 25 years-school/college going) 30, 000, two (2) parents of the Principal member 15,000. 12.5 Medical The Association shall support the sick members with an interest free soft loan of a maximum of two hundred thousand (kshs.200,000) upon exhaustion of medical cover limit with one off 25

1% admin cost (amount dependent on member s ability). The loan shall be paid back in a period of one year. 12.6 Discounted arrangements The Association shall make arrangements for its members with identified institutions for discounted arrangements in areas such as vehicle insurance, purchase of water tanks among others. 12.7 Corporate products or services The Association shall negotiate with Kenya Forest Service to lease site and display and sell their products. 12.8 Retirement All members of the Association who retire from employment and opt to exit from the Association shall be eligible to an exit benefit of 50% of their benevolent contribution. However, a member who opts to remain as a member after retirement is not eligible for the 50% of their benevolent contribution. 12.9 Enterprise and Investments The Association shall undertake enterprises and investments such as gift shops, recreational spaces, utility facilities, corporate social responsibility implementations, car wash, canteen/hotel, Kenya Forest Service headquarters' field leasing to members of the public, cleaning services among others. 13. Auditor a) An auditor shall be appointed for the following year by the Annual general meeting. b) All the Association s accounts, records and documents shall be opened to the inspection of the auditor at official working hours. c) The Treasurer shall produce an account of his receipts and payments and a statement of liabilities made up to a date which shall not be less than six weeks and not, more than three months before the date of the Annual general meeting. d) The auditor shall examine such annual accounts and statements in accordance with the law. e) A copy of the auditor s report on the accounts and statements shall be furnished to all delegates at the same time as the notice convening the Annual general meeting is sent out. 26

f) An auditor shall be paid such fees for his duties as may be determined by CMC and approved during the Annual general meeting appointing him. g) No auditor shall be an Office bearer or a member of the Central Management Committee of the Association 14. Amendments Proposals for amendments to By-laws may be made by members through delegates. Amendments to the By-laws of the Association must be approved by at least two-thirds (⅔) of all the delegates of the Association at an Annual General Meeting. A proposer of the amendments shall make an application to the CMC to acknowledge receipt, and signed by Chairman, Secretary and Treasurer of the Association. Thereafter, be tabled during the AGM for deliberation. Copies of the proposed amendments shall have been circulated to all delegates so as to get member's input at least twenty one (21) days before the presentation, deliberation and voted for by the delegates during AGM. 15. Miscellaneous:- 15.1 Common Seal:- The welfare shall adopt and use a rubber stamp bearing the words of the Association and shall be kept securely under lock and key, by the secretary and shall be used only by and in presence of the officers authorized to sign documents on behalf of the welfare. 15.2 Disputes Resolution:- Any dispute arising out of the by-laws or concerning the business of the welfare which cannot be settled by the Management Committee headed by the chairman shall be settled through mutual agreement by the aggrieved parties. 15.3 Acquisition of by-laws:- A copy of the by-laws shall be available to every member on request at a fee to be determined by the Central Management Committee. 27

15.4 Adoption of the By-laws We, the undersigned Central Management Committee members of the Association named herein do hereby accept and adopt these by-laws with any changes and or alterations that have been initiated or signed by us. INTERIM CHAIRMAN... INTERIM TREASURER... INTERIM SECRETARY... Certified that the foregoing by-laws of the Association has been approved by me and duly registered. Given under my hand on... this Day of the year 28