Saccos Defy Economic Hardships With Generous Dividend Payouts
Despite economic hardships brought about by the disruptive war in Ukraine and last year’s General Election, members of savings and credit co-operative societies (Saccos) in Kenya have received lucrative dividends and interest on deposits.
Several Saccos, including Kenya National Police DT Sacco, Harambee Sacco, Safaricom Investment Co-operative Sacco, Nation Sacco, Tower Sacco and Nyati Sacco, made generous payments to members for the financial year ended December 31 on improved surpluses, increased membership as well as enhanced member deposits.
Top rewarding Saccos last year include Kenya National Police DT Sacco whose board of directors recommended a dividend payout on a share capital rate of 17% amounting to KES 552m on deposits at a rate of 11% or KES 2.7bn up from 10.8% or KES 2.4bn it paid in 2021.
After being hit hard by pandemic shocks, several Saccos resumed payouts in 2021 after a two-year hiatus, following the unforgiving waves of the Covid-19 pandemic which broke out in 2019, affecting members’ ability to borrow and repay in time.
During the period, between March 2019 and mid-2021, many employees went on unpaid leave while others took pay-cut, with many businesses either recording losses or completely shut down. This saw many Sacco members withdraw their savings to cater to their needs.
“We have had a leadership consultation forum that has come up with a roadmap that will address the sector’s lingering challenges,” said Simon Chelugui, Cabinet Secretary for Co-operatives & Micro, Small, and Medium Enterprises (MSMEs).
The improved bonus payouts by firms that have since released their financial performance for the year in review point to better economic prospects for a sub-sector on its way to hitting KES 1tn in assets under management by Kenyan Saccos, according to analysts.
Kenyan Saccos usually pay dividends regularly at different intervals depending on what members agree on. The interval can range from monthly to annually – but most such payments are done yearly.
Saccos Defy Economic Hardships With Generous Dividend Payouts
