It is a windfall season for active members of Saccos as their societies announce surprisingly high dividends at their Annual General Meetings (AGM) even as the multi-billion sub-sector employs different strategies to improve their services.
The high dividend payments, which have given tidy returns to shareholders, come as a relief as they will be crucial in helping them cope with the raging cost of living.
Many Saccos, alive to this fact, resolved to cushion their members with better perks as a motivation to not only remain in the Sacco, but also mop up more savings to improve their financial health.
According to Saccos sampled by Sacco Review, Nyati Sacco topped the list again giving its members dividends at a rate of 21 per cent while interest on share capital earned 11.3 per cent.
The Sacco, which draws majority of its members from security firms, recorded an increase in its assets by 7.99 per cent from Ksh4.57 billion to Ksh4.94 billion, a short step to crossing the Ksh5 billion mark to Tier One.
It was followed closely by the Mombasa-based Port Sacco with dividend payouts of 20 per cent amounting to Ksh90, 804,973.
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This was after it recorded growth in loans at a rate of 21.5 per cent to Ksh5,996,939,583 while deposit and savings over the review period grew to Ksh5,277,151,475 from Ksh4,585,731,431, a 15 per cent increase.
For the case of Noble Sacco, the dividends and rebates payments were almost similar with a slight difference in percentage. The Sacco paid dividends at a rate of 11.3 per cent while interest on share capital at a rate of 11.06 per cent.
Rebates, by the way, are payments based on the non-withdrawable deposits; the amount contributed by members that are held by the Sacco which are not withdrawable upon member exit but transferable.
Ukulima DT Sacco rebranded to Apstar DT Sacco, with the National Chairman Dr Philip Cherono stating that the new brand signifies a journey of transformation and empowerment, which they have embarked on to signify the milestones in the country’s co-operative history.
In December 2023, the government revealed that member deposits in Saccos have crossed the Ksh1 trillion mark for the first time.
This is how dividends were paid by various Saccos.
Reaping time for Sacco members as they receive huge dividends
Data from the State Department of Cooperatives showed savings grew by 15.6 per cent to Ksh1.047 trillion in the half-year to June 2023 from Ksh906 billion, marking a major milestone for Kenya’s cooperative movement.
By staff reporter
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