Why Saccos Remain a Safe Haven for Investors
Savings and Credit Co-operative Societies (SACCOs) have maintained high dividend payouts and interest paid on members ‘deposits despite a harsh economic environment that has been characterized by high inflation rates, costly credit from banks, and a rapidly depreciating Kenya Shilling exchange rate against the US$ and other major world currencies.
Despite the prevailing economic uncertainties, the SACCOs have raised their dividends, buoyed by higher earnings and increased loan repayments. At present, interest rates charged for loans by commercial banks are increasing following a decision by the Central Bank of Kenya to hike the Central Bank Rate. This development has led many borrowers to Saccos, whose loan products are readily more affordable and fixed.
Ports Sacco continued to dominate the ranks as the Best Sacco for Impressive Returns and Growth Opportunities. Ports Sacco rewarded its members with a dividend rate of 20% after registering an exemplary financial performance in 2023. Ports Sacco has maintained an attractive annual return for its members for several years, with a 12.5% interest on deposit payments.
The Society’s total turnover grew by 14.9% to KSh1.208 billion in 2023, boosted by the growth in a loan portfolio that increased by 21.5% to KSh 5.99 billion. Members received increased earnings amounting to Ksh650 million.
The Society’s core business expanded by nine percent, with BOSA (back office) operations increasing by a good margin of 17.5%, doubling from the previous year. Ports Sacco is one of the country’s most financially stable DT Saccos, with an impressive liquidity ratio of 236.90% in 2022, according to the Sacco Societies Regulatory Authority (SASRA). In 2023, members’ deposits grew by seven percent to Ksh5.3 billion.
Also on the list of most rewarding DT Saccos is Newforties, which was among the first to declare double-digit dividend rates and rebates to its members. The Sacco paid KSh901.9 million as dividends on share capital, a whooping increase from KSh 795 declared in 2022.
“I am delighted to announce that the Sacco registered commendable financial results last year. Members will be paid interest on non-withdrawable deposits at 13% and 14% dividend on shares, a testament to our commitment to deliver the best,” said Mr. John Githinji, HSC, ICUDE, Newforties Sacco Board of Directors Chairman.
Newforties increased its annual turnover from KSh1.38 billion in 2022 to KSh1.45 billion in 2023.
Outstanding loans with members rose from KSh6.92 billion in 2022 to KSh7.68 billion in 2023, while non-withdrawable deposits grew to KSh7.05 billion in 2023 from KSh6.3 billion in 2022.
Despite harsh economic times in 2023, which slowed down the ability of members to take out loans, Newforties Sacco disbursed over KSh4.08 billion in loans and advances to members in 2023.
The Sacco’s balance sheet size also grew to over KSh11 billion as of December 31st, 2023, from about KSh10 billion in 2022.
Ollin Sacco members approved the Board of Directors recommendation to pay a historic high rate of 17.5% dividends on shares and 12.2% interest on non-withdrawable deposits.
The Sacco’s performance in 2023 saw gross revenue shoot up by 17.2% to Ks1.37 billion.
This impressive performance was attributed to the Sacco’s prudent investment strategy, which saw it invest in high-yield ventures while also maintaining a diversified portfolio.
The Sacco’s balance sheet size recorded strong growth of 21.42% from Ksh8.19 billion in 2022 to Ksh9.95 billion in 2023, driven by a 16.27% increase in member loans to Ksh7.73 billion.
Tower DT Sacco also had an impressive performance in 2023, with its surplus increasing by 35% by the end of December 31st, 2023, to Ksh2.4 billion. The Sacco’s total revenue also saw a significant increase of 22%, rising from Ksh2.86 billion in 2022 to Ksh3.49 billion.
This positive financial performance was its members got an impressive KSh 1.99 billion as dividends or 20% while rebates were 13%.
In a slowing economy that was a decline in economic activity, Tower Sacco increased its loan disbursements by 28% to KSh 12.5 billion in 2023 from KSh 9.8 billion in 2022.
Tower Sacco navigated the turbulent economic tide by diversifying its product and maintaining access to affordable credit facilities. The Sacco was also able to pack some of its cash in Government paper, worth KSh 1.5 billion, while cutting down on its bad loan book from 5% to 4.84% of the total loan book.
 Mentor DT Sacco paid out KSh1.183 billion in dividends and rebates, a 16.5% increase from 2023.
“By patronizing the Society’s products and services, members have played a crucial role in the Sacco’s growth and success. The Board recommends payment of interest on non-withdrawable deposits at a rate of 12.4% and dividend on share capital at 15%,” said Mr Anthony Kamau, Sacco Board of Directors Chairman.
The Sacco’s overall improved performance saw its total revenue grow from Ksh1.54 billion in 2022 to KSh 1.83 billion in 2023. Loans and advances that account for over 80% of the Sacco’s business increased marginally by 12%, expanding the loan book to Ksh9.86 billion in 2023.
During the year, the Sacco granted loans and advances with Ksh8.15 billion. However, the loan uptake slowed compared to the previous year when the Sacco reported a 16% growth in loan disbursement, pointing to economic distress and reduced household incomes.
Nonetheless, Mentor Sacco continued to provide credit to its members by offering quality products and services at a competitive rate to enhance their economic and social growth.
Ndege Chai DT received over Ksh328.6 million, or a dividend of Ksh20 per 100 shares, an improvement from Ksh15 in the previous year. Additionally, they received 10.5% interest on their deposits.
Ndege Chai’s total revenue increased to Ksh823.8 million. Innovation and excellent service delivery through tech-led solutions boosted the Sacco’s loan and advance uptake, with the loan book expanding to Ksh3.58 billion in 2023 from Ksh3.14 billion in 2022.
The Sacco’s journey to join the tier one category of the wealthiest DT Saccos is firmly in place, with its balance sheet increasing from Ksh4.27 billion in 2022 to Ksh4.86 billion at the end of 2023.
Solution Sacco also weathered tough economic conditions in 2023 to grow member deposits by 17% to Ksh 6.15 billion in 2023, up from Ksh 5.24 billion in 2022. This growth was driven by strong deposit growth across all business segments, reflecting members’ trust and confidence in the Sacco.
The Sacco’s extensive branch network and friendly, accessible services to all globally boosted its membership growth by 13% to over 30,900.
Its total revenue rose sharply at 8.1% to Ksh 1.73 billion from Ksh 1.58 billion in 2022 due to improved business and strong demand for credit, with good growth in loan volumes during the year.
The Sacco’s friendly rates compared to banks contributed to this growth, and the Sacco reported an 11.9% growth in loans, closing at Ksh 7.65 billion in 2023 compared to Ksh 6.84 billion in the previous year.
Based on the improved financial growth, the Board of Directors announced a double-digit dividend payout of 15% and a payment of interest rebates on members’ deposits at the rate of 12.5%. Cosmopolitan Sacco is making headlines with its remarkable financial performance, delivering top-notch services to its members.
With its innovative and affordable credit options, the Sacco is helping its members transform their lives. At the recently held 44th Annual General Meeting, the Sacco reported impressive growth in all key market segments and total revenue of Ksh1.35 billion, boosted by increased interest income, reduced expenditure, and growing patronage of Sacco products and services by members.
The Sacco’s Board of Directors recommended a whopping 16% dividend and 12.03% interest on members’ deposits payout, totaling over Ksh780 million.
Nakuru-based Cosmopolitan Sacco is also on the list of top dividend payers as well as rebates. The Sacco has rolled out new financial products and services tailored to members’ needs and addressing current economic challenges. This has resulted in members receiving loans and advances amounting to Ksh8.18 billion, compared to Ksh7.54 billion in 2022.
One of the significant achievements of the Sacco is that it no longer has a loan backlog, according to Mr. John Rukwaro, Chairman of the Board of Directors.
Cosmopolitan Sacco’s total assets grew by 12,7% to Ksh10.3 billion last year from Ksh9.1 billion in 2022, while members’ deposits rose 11.26% from Ksh7.34 billion in 2022 to Ksh8.17 billion in 2023.
Impressively, withdrawable members’ savings registered a significant growth to reach Ksh1.93 billion, up from Ksh1.8 billion in 2022, despite economic challenges experienced in the country. Non-performing loans declined from 5% of the entire loan book to 3.38%.
Simba Chai Sacco’s balance sheet grew to Ksh1.99 billion in 2023, with loan disbursements increasing across all service channels. The loan portfolio reached Ksh1.5 billion at the close of the financial year, reflecting the Sacco’s commitment to providing financial support to its members.
Despite the high cost of living and newly introduced taxes, members’ deposits increased by five percent to Ksh997 million. The Sacco also saw a ten percent growth in membership, reaching over 22,744 in 2023.
Simba Chai Sacco’s prudent measures have helped it maintain a strong financial and profit position, with total revenue growing by eight percent to Ksh295.1 million in 2023.
Non-performing loans declined significantly, boosting the Sacco’s surplus by 10 percent. Members were rewarded with improved annual returns, pocketing dividends on shares and interest on deposits at 10.5 percent. The Sacco paid out almost Ksh100 million to members.
Kenya Highlands Sacco witnessed an impressive performance in 2023, with a total revenue jump of 28% to Ksh810.8 million from Ksh634 million in 2022. As a result, members saw a significant increase in their annual take-home pay. The proposed dividend payout increased by 18.3%, and interest on deposits grew by 19.4%.
The Sacco’s Board of Directors declared payments of Dividends on Share capital at 15%, interest on members’ non-withdrawable deposits at a rate of 13.8%, and group and business shares deposits at 13.8%.
The revenue growth was mainly due to a remarkable increase in loans and advances disbursement to members. It rose by 27.8% to hit Ksh4.33 billion in 2023 compared to Ksh2.58 billion in 2022.
Yetu Sacco, one of the fastest-growing deposit-taking Sacco in Kenya, has once again proved to be a lucrative financial institution for investors eager to grow their money, build wealth, and achieve their development aspirations.
During the Society’s 32nd Annual General Meeting, the Sacco Board of Directors Chairman, Mr. Mark Gitonga, announced that Yetu Sacco had declared one of the highest rates of dividends payout at 19% and interest on deposits at 13% for the financial year ending December 31st, 2023. Members of Yetu Sacco took home over Ksh350 million in annual returns.
Members’ deposits grew by 25% to Ksh4.05 billion in 2023 as the membership increased by 17,991, a 28% growth to hit 84,075. Yetu Sacco has successfully mobilized deposits, primarily through the Bakisha Account. This daily deposit-taking savings account allows members to save from loose changes in their daily expenditures. Last year, the Sacco’s savings officers collected over Ksh812 million.
Members of Winas Sacco received high annual returns for the financial year 2023. The Sacco’s Board of Directors announced a payment of dividends on share capital at 16%, an improvement from the 15% rate paid the previous year, and interest on deposits at 12.5%.
The Sacco’s total revenue was Ksh1.91 billion, an increase of over Ksh171.3 million from Ksh1.74 billion in 2022.
The balance sheet expanded by 15% to reach over Ksh11.2 billion last year, up from Ksh9.7 billion in 2022.
Active membership also grew impressively, by 37.2% from 24,011 in 2022 to 32,980 in 2023, boosted by the Sacco’s enhanced brand visibility and trust. Affordable lending anchored the Society’s financial performance, with the loan book up 9.2% to Ksh10.6 billion.
Also prominently featured on the top payers is Acumen Sacco, whose total assets grew by 11% to a new high of Ksh448 million compared to Ksh403 million a year earlier. The Sacco loan book expanded marginally to Ksh332 million in 2023, up from Ksh322 million in 2022. Total deposits relatively improved by 9.41% to reach Ksh350.7 million.
The Sacco distributed over Ksh 4.8 million as annual returns, with members receiving dividends on shares at 15%.
Univision DT Sacco, formerly Kitui Teachers DT Sacco, saw its balance sheet increase by 14.6% to reach Ksh 10.1 billion in 2023, up from Ksh 8.8 billion in 2022. Additionally, the Society’s membership grew by 25% to 51,207.
With the improved financial performance, the Sacco will pay interest on deposits at a 12 percent rate and dividends on share capital at 14.5 percent.
