Afya sacco to pay members Sh58 million dividend

In Summary

•Last year, the sacco reports Sh13.1 billion in member deposits and savings, a 6.5 per cent growth from Sh12.29 billion in 2017

•Sacco members should this year expect a significant cut on their dividend payout following Income Tax changes that took effect in January

The Managing Director of Afya Sacco Society David Kinaniri
The Managing Director of Afya Sacco Society David Kinaniri

Afya Cooperative Sacco Society has recommended a Sh857.4 million payout as interest and dividends on member deposits and shares at 7.5 and six per cent respectively.

During the sacco’s 39th Annual Delegates Conference, chairman Vitalis Lukiri the dividends payable will amount to Sh58 million.

“Members shares in the society have increased from Sh1.03 billion in 2017 to Sh1.45 billion in 2018 and members who complete payment of Sh20,000 are issued with a share certificate to denote shares held,” he said.

Last year, the sacco reports Sh13.1 billion in member deposits and savings, a 6.5 per cent growth from Sh12.29 billion in 2017.

“Since inception, the Sacco has been able to cumulatively disburse over Sh93.5 billion to members as loans whereby in 2018 alone Sh6.9 billion was disbursed as loans,” he said.

Saccos have come under fire after the Ekeza Sacco scandal that has saw members lose their hard earned cash, while Mwalimu and Stima Saccos have been tied to doubtful investments.

Sacco members should this year expect a significant cut on their dividend payout following Income Tax changes that took effect in January.

The new law doubled taxes on members’ dividends from five to 10 per cent as well as withholding tax rate applicable to the dividends payable by a Sacco as an institution.

In total, Kenya Revenue Authority will take away 20 per cent of each Sacco member’s dividends compared to the 10 per cent it has been charging since 1973.