SACCOs’ Huge Returns Despite Harsh Economic Conditions

Savings and Credit Co-operative Societies (SACCOs) engaged in the deposit-taking have continued to pay huge dividends and rebates to members as shown by the number of societies that have already held their annual general meetings (AGMs).

• All licensed Deposit-Taking Saccos are required to hold their AGMs before the end of April this year.
• Saccos fix their lending and savings rate at the annual general meetings- which are not subject to change without approval of members at these AGMs.
• Saccos also uses a guarantorship model when lending to members as opposed to banks that rely on collateral from customers before providing any credit.

The Sacco Societies Regulatory Authority licensed 175 Saccos to undertake deposit-taking business in Kenya in 2023. Despite the economic slump in 2023, increased taxes, and new levies that weakened their borrowing power and wiped out household incomes, DT Saccos were able to register impressive financial performance as shown by returns to members by financial co-operatives that have already held their AGMs.

Harambee Sacco, the 4^th largest in Kenya in terms of assets base, is the latest to hold its AGM this Monday. Its members approved a decision by the Society’s directors to pay members a dividend on share capital of 12% and 8.5% as interest on members’ deposits.

Kenya National Police DT Sacco, which will hold its Annual Delegates Meeting(ADM) this Saturday 24^th February 2024, will pay its members a dividend on share capital at the rate of 17% and interest on members’ deposits at 11%. The Society has maintained these payment rates at the same level as those paid in 2022, even with difficult economic conditions that prevailed in most of 2023.

Saccos that have already given returns to members

Name                                                                    Dividend rate                     Interest of Members Deposits

Newfortis Sacco                                                14%                                                       13%

Ollin Sacco                                                         17.5%                                                      12%

Tower Sacco                                                   20%                                                     13%

Mentor Sacco                                     15%                                           12.4%

Port Sacco                                                 20%                                                12.5%

Solution Sacco                                           15%                                          12.5%

Cosmopolitan Sacco                                 16%                                       12.03%

Kenya Highlands Sacco                                       15%                                               13.8%

Yetu Sacco                                                       19%                                             13%

Winas Sacco                                                     16%                                               12.5%

Univision Sacco                                                14.5%                                               12.5%

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