DIVIDEND BOOM
Saccos (savings and credit cooperatives) 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 have reported impressive performances, experiencing notable growth across all key segments. Various Saccos that have held their annual meetings have announced growth in revenues and improved earnings for members.
Annual reports by the Sacco Societies Regulatory Authority (SASRA) have consistently shown that Saccos outperforms banks in paying high interest on deposits and dividends on shares. This year, Sacco members are smiling all the way to the bank, reaping substantial rewards from their investments.
While Saccos are being encouraged to avoid declaring unrealistic dividend payouts—due to concerns about unhealthy competition as highlighted by the Ministry of Cooperatives and MSMEs—members remain eager to learn how their Sacco’s annual returns compare with those of others.
A lower interest rate on loans has been acclaimed as a key selling point for Saccos.
Here are the returns on investment announced by Saccos for the financial year 2024:
– Mentor Sacco: Members earned dividends on share capital at 15% and interest on deposits at 12.5%, resulting in a total payout of Ksh 1.395 billion after a revenue growth of 17.9%, reaching Ksh 2.156 billion. The Sacco also saw its loan portfolio grow by 18.14% to Ksh 11.65 billion.
– Newfortis Sacco: Reported good returns with dividends at 14% and rebates on deposits at 13%, distributing over Ksh 993.98 million to members.
– Ports Sacco: Maintained dividends on shares and rebates on deposits at 20% and 12.5%, respectively.
– Tower Sacco: Impressive growth allowed it to reward members with a total payout of over Ksh 2.4 billion, with total revenue increasing 24% to Ksh 4.3 billion. Members received dividends on shares at 20% and interest on deposits at 13%.
– Cosmopolitan Sacco: Declared dividends on shares at 16% and interest on deposits at 12.04%, with its loan portfolio expanding significantly to Ksh 8.9 billion.
– OLLIN Sacco: Recorded stellar growth, providing members with attractive returns on investment. It paid dividends on shares at 17.5% and rebates on deposits at 12.2%.
– Winas Sacco: Members received dividends on shares at 16.5% and rebates on deposits at 12.5%.
– Univision DT Sacco: Members pocketed over Ksh 872.6 million, earning 14.5% on share capital and 12% on deposit interest.
– Trans Nation Sacco: Announced over Ksh 1 billion in returns to its investors, with dividends at 15% and rebates at 12.5%.
– Capital Sacco (Meru): Paid dividends on shares at 15% and interest on deposits at 9%.
– Yetu Sacco: Increased its payout to members to Ksh 443 million, offering attractive rates of 19% for dividends and 13% for rebates.
– Shirika DT Sacco: Launched a new strategic plan for 2025-2029 and reported membership growth of over 10,000.
– Unison Sacco (Laikipia): Members received dividend on shares at 18% and interest on deposits at 12.6%.
– Magadi Sacco: Announced dividends at 20% and interest on deposits at 12%.
– Kenya Highlands Sacco: Experienced stellar growth, joining the Tier 1 category, with total assets reaching Ksh 5.45 billion. The board declared the highest returns on deposits, with members earning 13.5% in rebates and 15% in dividends.
– Golden Pillar Sacco: Reported 21.1% revenue growth, rewarding members with 12% dividends and 8.5% deposit rebates.
– Ndege Chai Sacco: Maintained a high dividend rate at 18.5% and interest on deposits at 10%, pushing it into Tier 1 with assets over Ksh 5.2 billion.
– Nation DT Sacco: Announced an 11% deposit rebate and a 20% dividend payout on share capital.
– Imarisha Sacco: Members received dividends on shares at 14.09% and rebates on deposits at 11.07%.
-Hazina Sacco announced a payment of dividends on shares at a rate of 17% and rebates on deposits at 10.85%.
-Imarika Sacco experienced a significant increase in total revenue, reaching Ksh 2.27 billion. Members received dividends on shares at 15% and interest on deposits at 10%.
-Nyati Sacco members received Ksh 832.5 million in annual returns, with dividends on shares at 19% and interest on deposits at 11.35%.
-Kewisco Non-WDT Sacco paid dividends at 17% and offered interest on deposits at 9.7%, with revenue growing by 18% in 2024.
-Mafanikio Sacco announced an impressive dividend rate of 18%, setting a high standard for member returns.
– IG Sacco rewarded its members with a competitive 17% dividend payout.
-Tabasamu Sacco declared a return of 10% on share capital, while Jamii Sacco captivated its members with an attractive dividend offering of 14%.
-Stima Sacco also joined the ranks, announcing a solid 16% dividend on shares, and Harambee Sacco impressed its members with a commendable 15% rate.
Joining a Sacco is a wise decision, as it provides access to affordable loans and allows you to earn from your savings. Whatever loan interest you pay, you get part of it back every 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, highlighting a significant shift in the financial landscape. Kenyans are increasingly turning to Saccos for loans, savings contributions, and salary deposits, showcasing a growing trust in these cooperative financial institutions.
