If you’re looking to grow your money, then Saccos (Savings and Credit Co-operatives) are among the most lucrative financial institutions for investment.
According to several Sacco Societies Regulatory Authority (SASRA) reports, regulated Saccos consistently offer higher interest rates on deposits and dividends on members’ share capital compared to commercial banks. This highlights the competitive advantage of Saccos, where deposits serve as collateral for credit and earn attractive returns for members.
In 2023, for instance, Saccos paid an average interest rate of 7.45% on members’ deposits, while the average dividend rate was 10.92%. These rates far exceeded the average 3.84% interest paid by commercial banks on customers’ savings in the same year. With Saccos consistently outperforming commercial banks in terms of returns, investing in Saccos presents a compelling opportunity for wealth growth. Members of Saccos have continued to enjoy high returns on their savings and access to affordable credit facilities.
Saccos have also experienced income growth in recent years. The consolidated Statement of Comprehensive Income for all regulated Saccos, as analyzed by SASRA, indicated a total income increase of 12.94%, rising to Kshs 136.30 billion in 2023, up from Kshs 120.68 billion in 2022. This growth demonstrates that Saccos maximized the use of their assets to generate more revenue.
Sacco Millionaires
An increasing number of individuals are taking advantage of opening Sacco savings accounts, contributing to the overall growth of both BOSA (Back Office Services Activities) and FOSA (Front Office Services Activities) accounts. This trend reflects growing confidence in the benefits and security offered by these accounts.
The number of Sacco savings accounts has risen to 14.63 million, supported by a total membership increase of DT-Saccos (Deposit-Taking Saccos) to 6.32 million in 2023. Notably, the number of deposit accounts with balances over Ksh 1 million among DT-Saccos increased to 98,000, according to the SASRA Annual Supervision Report for 2023. These accounts held a total of Ksh 188.93 billion.
Saccos continue to attract investors eager to grow their money, offering high annual returns on members’ investments. Despite the economic challenges faced during the financial year 2024, these financial cooperatives reported impressive performances and growth across all key segments. A lower loan interest rate has been acknowledged as a key selling point for Saccos.
Here are the returns on investment announced by Saccos for the financial year 2024:
- Mentor Sacco: Dividends on share capital at 15% and interest on deposits at 12.5%. Total payout of Ksh 1.395 billion.
- Newfortis Sacco: Dividends on shares at 14% and rebates on deposits at 13%. Total payment, over Ksh 993.98 million.
- Ports Sacco: Dividends on shares at 20% and rebates on deposits at 12.5%.
- Tower Sacco: Total payout of over Ksh 2.4 billion; dividends on shares at 20% and interest on deposits at 13%.
- Cosmopolitan Sacco: Dividends on shares at 16% and interest on deposits at 12.04%.
- OLLIN Sacco: Dividends on shares at 17.5% and rebates on deposits at 12.2%.
- Winas Sacco: Dividends on shares at 16.5% and rebates on deposits at 12.5%.
- Univision DT Sacco: Total payout of Ksh 872.6 million; dividends on shares at 14.5% and 12% on deposit interest.
- Trans Nation Sacco: Dividends at 15% and rebates at 12.5%.
- Capital Sacco: Dividends on shares at 15% and interest on deposits at 9%.
- Yetu Sacco: Dividends on shares at 19% and rebates on deposits at 13%.
- Unison Sacco: Dividends on shares at 18% and interest on deposits at 12.6%.
- Magadi Sacco: Dividends on shares at 20% and interest on deposits at 12%.
- Kenya Highlands Sacco: Rebates on deposits at 13.5% and dividends on shares at 15%.
- Golden Pillar Sacco: Dividends at 12% and deposit rebates at 8.5%.
- Ndege Chai Sacco: Dividend rate at 18.5% and interest on deposits at 10%.
- Nation DT Sacco: 11% deposit rebate and a 20% dividend payout on share capital.
- Imarisha Sacco: Dividends on shares at 14.09% and rebates on deposits at 11.07%.
- Hazina Sacco: Dividends on shares at 17% and rebates on deposits at 10.85%.
- Imarika Sacco: Dividends on shares at 15% and interest on deposits at 10%.
- Nyati Sacco: Dividends on shares at 19% and interest on deposits at 11.35%.
- Kewisco Non-WDT Sacco: Dividends at 17% and interest on deposits at 9.7%.
- Mafanikio Sacco: Dividend rate of 18%.
- IG Sacco: 17% dividend on shares.
- Tabasamu Sacco: 10% dividend on share capital.
- Jamii Sacco: Dividend on shares of 14%.
- Stima Sacco: 16% dividend on shares.
- Harambee Sacco: Dividend on shares at 15%.
Joining a Sacco is a wise decision, as it provides access to affordable loans while allowing you to earn from your savings. Whatever loan interest you pay, you receive a portion of it back each year.
Kenyans continue to flock to Saccos for affordable loans. According to the 2024 FinAccess Survey, Saccos have emerged as the leading financial choice for many, boasting a monthly usage rate of 74.9%. This rate is notably higher than the 58.7% usage rate reported for traditional banks.
