The writer argues that a financially stable SACCO is not simply one that pays high dividends. It is one that can withstand economic shocks, maintain adequate liquidity, manage loan defaults effectively, and protect members’ deposits over the long term.
Are high dividends a measure of your SACCO’s financial stability?
For decades, Savings and Credit Cooperative Organization (SACCOs) have occupied a special place in Kenya’s financial ecosystem. They are trusted institutions built on community ownership, shared prosperity, and the promise of affordable credit. Every year, members eagerly await dividend announcements with the same excitement shareholders reserve for listed companies. In many circles, a SACCO that…
