Grow Your Savings Like Never Before with Saccos
Why saving in Saccos grows your money
Saccos remains the most lucrative financial institution for investors. The return on investment for Sacco members remains the highest, with the latest data from the Sacco Supervision Annual Report 2022 highlighting Saccos as the best investment avenue for people eager to grow their money.
The average interest rates paid by the regulated Saccos on member deposits in 2022 recorded a slight growth to 6.92% from 6.86% paid in 2021. Deposit-taking Saccos had an even higher rate on their members’ savings at 7.11% in 2022 compared to the Non-Withdrawable Deposit (NWDT) Saccos, which paid a mean interest rate of 7.10%.
These returns on members’ savings were higher than the interest rates paid by commercial banks on savings, which averaged 3% during the year 2022, cementing the dual comparative edge of savings in Saccos, which not only earns interest but is also applied as collateral against loans advanced to members.
In addition, the regulated Saccos paid their members a return on their share capital at a mean rate of 10.47% in 2022 compared to a mean rate of 9.87% in 2021.
The Sacco Societies Regulatory Authority (SASRA) report also indicated that the DT-Saccos segment paid dividends on the members’ shares at an average rate of 10.41% in 2022 compared to a rate of 9.44% in 2021. NWDT-Saccos’ segment, on the other hand, paid a return on the members’ shares as dividends at a rate of 10.92% in 2022 from a rate of 10.55% in 2021.
Saccos has maintained solid growth over the years, overcoming challenges to become the choice financial institution to many. They are now formidable institutions with equal or better financial products and services than banks.
Most Saccos reported improved earnings in 2022 against a turbulent economic environment. According to SASRA, the total incomes of the regulated Saccos grew by 11.13% to reach Ksh 129.68 Billion last year from Ksh 108.59 Billion in 2021. The net financial income, on the other hand, grew by 12.54% to reach Ksh65.78 Billion in 2022 from Ksh 58.45 Billion in 2021, while the net income after tax increased by 79.14% in 2022 to reach Ksh 20.21 Billion compared to Ksh 11.28 Billion reported in 2021.
