Savings and Credit Co-operative Societies (Saccos) members are reaping big from higher dividends and rebates of up to 20 per cent as Sacco’s post better returns after the Covid-19 hit.
An analysis of financial records of top Saccos in the country shows members are earning at least four per cent more for their 2023 savings compared to 2022.
Most Saccos attribute this to improved surpluses, increased membership and enhanced member deposits.
Kenya National Police DT Sacco, the third biggest in terms of asset base on Tuesday recommended a dividend payout on a share capital rate of 17 percent amounting to Sh552 million and an 11 per cent or Sh2.7 billion up from 10.8 percent or Sh2.4 Billion it paid in the previous financial year.
Last week, Harambee Sacco, the fourth leading player in the market with an asset base of Sh37 billion declared a 12 per cent dividend on members' deposits, the highest on record.
The Sacco’s National chairman, Macloud Malonza said the Sacco reported the most improved performance in its 53-year history, despite local and international economic turmoil, fueled by among other things, inflation, and global conflicts.
The Sacco's total revenue for the said year grew to Sh5.686 billion, up from Sh5.012 billion in the previous financial year. The entity is offering a 17 per cent payout per share.
On the other hand, Nation Sacco announced the highest dividend payout per share of 20 and 11 per cent on members’ deposits.
Members of the Yetu Sacco reaped big from the mouthwatering dividends on share capital at a rate of 19 per cent and 13 per cent Interest on deposits.
The Society revenue also grew by 16.5 per cent that is, Sh919.9 million compared to 789.2 million in the year 2022 while the share capital surged by 36.5 per cent.
Yetu Sacco CEO Dennis Kirimi said that Sacco has increased membership by 28 percent from 66,084 in the year 2022 to 84075 in the year 2023.
Safaricom Investment Corporative (SIC) members will take home Sh142.4 million in dividends despite a Sh62.6 million decline in profits.
Despite this downturn, the co-operative's net profit still represents an 8.1 per cent return on the members' capital of Sh2.5 billion.
Land business remains the primary revenue driver, contributing 90 per cent of the total revenue and delivering a gross revenue of Sh1.4 billion.
The Sacco Sector in Kenya has been growing, hitting over a trillion in assets in 2023.
Data from the State Department of Cooperatives shows savings grew by 15.6 per cent to Sh1.047 trillion in the year to June 2023 from Sh906 billion, marking a major milestone for Kenya’s cooperatives movement.
