Another reason why you should invest in SACCOs. Grow your Money
Investing in Savings and Credit Co-operative Societies (Saccos) pays off. Analysis of the latest Sacco financial reports indicates the institutions are rewarding their members with high annual returns on investment far above other financial institutions.
With many Saccos registering ballooning growth, members had all the reasons to smile as most declared improved payment of dividends on shares and interests on deposits for the financial year ended 31st December 2021. The Sacco sub-sector continued to record high growth. Many Deposit-Taking Societies reported improvement on total revenue, asset base, members’ deposits, loan portfolio, and share capital, among other key growth areas.
Here is how a section of Saccos paid annual returns to members based on their audited financial statements for the financial year 2021.
Stima DT Sacco defied a harsh economic environment to pay dividends on shares and interests on deposits amounting to Ksh2.99 billion, up from the Ksh2.72 billion they earned in 2020.
Ukulima Sacco paid members Ksh748.5 million, a one-off interest on deposits payout, and Ksh88.4 million dividends on shares. Members of Kericho-based Imarisha Sacco pocketed Ksh1.2billion annual earnings for the year 2021.
Mombasa Port Deposit-Taking Sacco maintained high payment of dividends and rebates to members following the successful financial year 2021, paying over Ksh517 million to members as annual returns.
It was yet another good year for Sheria Sacco members, who received improved payment on their investment amounting to over Ksh480.1 million.
Cosmopolitan Deposit-Taking Sacco has sustained a high growth rate paying dividends and rebates totaling Ksh600 million for the financial year 2021, an increase of over Ksh77 million it paid in 2020.
Harambee Sacco shuttered its revenue generation history with an all-time high collection of Ksh1billion growth to Ksh4.2 billion in 2021 from Ksh3.2billion in 2022, increasing interest payout by Ksh282.36.
Ollin Sacco Board of Directors declared a high payout of dividends on share capital and interest on members’ deposits amounting to over Ksh480 million. Solution Sacco that registered an exemplary financial performance last year also paid improved earnings to members.
Tower Sacco paid dividends and rebates amounting to over Ksh1.36 billion after registering a 17% total revenue growth to Ksh2.4 billion. In the last 17 years, the Sacco has paid over Ksh6.3 billion annual returns to members.
Trans Nation Sacco members received a total payout of Ksh 633.5 million as dividends on shares and interest on deposits. This was a 27% growth from Ksh 498.8 million paid in the previous year.
Yetu Sacco members also received a windfall pocketing over Ksh240 million annual returns. Bandari Sacco Board of Directors declared payment of dividend on share capital at 18%, one of the highest rates in the sector.
Unison Sacco had excellent financial results in 2021 and paid members high dividends at 16% after recording a 31% growth in total revenue to Ksh808.2 million.
Acumen Sacco members also received improved annual returns for the ended fiscal year as the Board declared a total payout of Ksh201.1 million, up from Ksh187.7 million in 2020.
Saccos remain the best financial institutions offering high returns on members’ savings and deposits.
According to Sacco Societies Regulatory Authority’s (SASRA) Annual Supervision Report 2020, Deposit-Taking Saccos (DT-Saccos) paid a total of Kshs 30.61 billion as interest on deposits representing 35.58% of the Sacco sub-sector total income.
SASRA analysis also revealed that DT-Saccos paid on average of 6.01% interest on the deposits in 2020, which was a drop from an interest rate of 6.72% paid in 2019. However, the rate was high compared to the banking institutions that paid an interest rate of about 3.42% on customer deposits.
“DT-Saccos by far remained comparative competitive financial deposit-taking institutions. The dividends earned on the share capital held by DT-Saccos was 8.26% in 2020 compared to 9.11% earned in 2019. The drop in the rate of dividends paid was generally engineered by the need to retain more surpluses to build institutional capital, especially in the wake of uncertainties associated with impacts of the COVID-19 pandemic,” said SASRA.
