Most of the Sacco’s that have released results have raised their rebates and dividends buoyed by higher earnings, increased loan repayments, and reduced economic uncertainty.
The sector performance has seen members post increased revenues with Harambee Sacco defying a tough financial operating environment in 2022 to grow its revenues past the Sh5 billion mark.
The giant savings and credit cooperative posted Sh5.01 billion in revenue in the FY ended December 31 2022, a growth or about Sh800 million from Sh4.22 billion in 2021.
The results have seen the Sacco increase dividends rate on members’ Share Capital at 10 percent from 8 percent in 2021.
"Having started at the height of the Covid-19 pandemic, our focus with regards to moving our services to the mobile platforms was crowned in the financial year 2022", said Harambee sacco CEO, George Ochiri.
Harambee Sacco Chairman, Macloud Malonza said the high performance was attributed to the fast-adaptive nature embraced by the management to meet the diverse needs of its members.
"In order to sustain our growth momentum going forward, the Board of Directors, is putting in place a robust intervention mechanism that will ensure this growth curve is not only sustained but improved through the deployment of an agile, dynamic and resilient strategy," Malonza said.
Safaricom Investment Co-operative shareholders have also approved a Sh176.9 million dividend payout translating to seven percent per share dividend up from 4.7 percent per share paid in 2021.
This pay-out comes after the Society posted a Sh542.9 million gross profit, compared to Sh396.3 million posted in 2021.
“Our financial performance has improved across all metrics, we continue to implement innovative solutions that have cemented our performance through adverse economic times and those that focus on driving value to our investors,” said Safaricom Investment Co-operative Chairman Peter Gichangi during the firms Annual General Meeting.
Other Sacco’s that have declared dividends to members after posting impressive results are Tower Sacco which announced 13.0 percent payout on deposits, 20.0 percent on share capital.
Nation Sacco announced 9.5 percent on deposits and 18.0 percent on share capital.
With tough oversight by the Saccos Societies Regulatory Authority Saccos have been forced to make provisions for the non-performing loans, thereby reducing the surplus available for dividend distribution.
