Saccos in Kenya are making waves as dividend season rolls around. Members are celebrating their financial gains, sparking excitement and discussions online.
Some are proudly sharing their earnings, while others are urging friends to join and reap rewards next year.
Have you considered joining a Sacco? It’s not just about saving money. These cooperative societies offer a chance to grow your wealth through dividends.
As 2023 wrapped up, several Kenyan Saccos stood out for their impressive payouts.
Let’s take a look at some top-performing Saccos in Kenya. Their 2023 results show why more people are turning to these financial cooperatives.
Whether you’re already a member or thinking of joining, understanding which Saccos offer the best returns can help you make smart financial choices.
Top SACCOs offering high dividends in 2024
1) Nyati SACCO: Leading the pack
Nyati SACCO has grown impressively over its 45-year history. It now serves over 33,000 members from 18+ companies. The SACCO offers two membership types:
- Group members (check-off system)
- Non-check-off members (diaspora, spouses, registered groups)
Nyati stands out with its remarkable dividend rates for 2024:
- 21% dividend on shares
- 11.3% interest on deposits
These rates make Nyati one of Kenya’s top dividend-paying SACCOs.
2) Tower SACCO: From teachers to tycoons
Tower SACCO began in 1976 as a small group of primary school teachers. Today, it’s a financial powerhouse:
- 250,000+ members
- 20 billion Kenyan shillings in assets
- Presence in 8 counties
- 29 branches and 300 agents
Tower SACCO rewards its members handsomely:
- 20% dividend on shares
- 13% interest on deposits
3) Ports SACCO: Sailing to success
Ports SACCO started in 1966 for East African Harbours & Railways employees. In 2010, it opened its doors wider, welcoming:
- Salaried and non-salaried individuals
- Diaspora members
- Businesses and corporations
- Investment groups (chamas)
The SACCO has won awards for:
- Best managed SACCO
- Best capitalized SACCO
- Best insured SACCO
- Highest dividend-paying SACCO
This year, Ports SACCO continues to impress:
- 20% dividend on shares
- 12.5% interest on deposits
4) Yetu SACCO: Growing beyond tea
Yetu SACCO’s roots lie in the tea-growing regions of Imenti. Key facts:
- Founded: 1991 (as South Imenti Tea Growers SACCO)
- Rebranded: 2010 (to reflect wider membership)
- Current reach: 6 branches
- Membership: 59,000+
- Asset base: 5.7+ billion Kenyan shillings
Yetu SACCO’s dividend rates are competitive:
- 19% dividend on shares
- 13% interest on deposits
5) Ollin SACCO: Pioneering Front Office Services
Ollin SACCO holds a special place in Kenyan financial history. It was the first SACCO in Kenya and Africa to operate a front office (FOSA). Quick facts:
- Established: 1976
- Initial members: 163
- Current members: 30,000+
- Expansion: From Kerugoya town to 9 additional branches
Ollin SACCO serves a diverse membership:
- Teachers
- Public officers
- Business owners
- SACCO employees
- Private institution staff
This year’s dividend rates:
- 17.5% dividend on shares
- 12.2% interest on deposits
6) Police Sacco: A financial powerhouse for law enforcement
Police Sacco stands tall as Kenya’s third-largest savings and credit cooperative by asset base. Born in the late 1970s, it aimed to meet the money needs of Kenya’s police officers and their loved ones.
Today, Police Sacco welcomes all Kenyans to join. It’s not just for those in uniform anymore.
Latest payouts:
- Dividends: 17% on share capital
- Interest: 11% on non-withdrawal deposits
If you’re looking for a place to grow your money, Police Sacco might be worth checking out. With its strong track record, it could be a smart choice for your financial future.
7) Hazina Sacco: A leading financial cooperative
Hazina Sacco stands out as a top player in Kenya’s financial sector.
With 29,000 members and four branches, this cooperative boasts assets of 12.7 billion shillings.
In 2024, Hazina Sacco offered a 17% dividend on shares and 10.8% interest on deposits.
7) Stima Sacco: Powering financial growth for all
Stima Sacco has grown beyond its roots in the energy sector. It now welcomes members from all walks of life.
With over 170,000 members and 12 branches, it’s a key player in Kenya’s financial landscape.
The Sacco’s asset base stands at an impressive Ksh 53.8 billion. This shows its financial strength and ability to serve members well.
In 2024, Stima announced a 15% dividend on shares and 11% interest on non-withdrawable deposits.
These rates make Stima a top choice for those looking to grow their savings.
8) Safaricom’s savings group
Safaricom’s savings group welcomes both employees and non-employees. It boasts 10.5 billion Kenyan shillings in assets and over 18,000 members. The group operates two branches to serve its growing membership.
In 2024, members received attractive returns:
- 13% dividend on shares
- 8% interest on deposits
These rates make Safaricom’s savings group an appealing option for those looking to grow their money. With its strong financial position and generous payouts, it’s worth considering if you’re eligible to join.
Other top-performing Saccos and their dividend payouts
Several other Saccos have announced impressive dividend rates for their members.
Nation Sacco leads the pack with a 20% dividend on shares and 11% interest on deposits.
Winas Sacco follows closely, offering 16% dividends and 12.5% interest.
Trans Nation, Solution, and Mentor Saccos all provided 15% dividends. Their interest rates are 12.5%, 12.5%, and 12.4% respectively.
New Fortis Sacco offers 14% dividends and 13% interest.
Other notable performers include:
- Chai Sacco: 13% dividends, 9.5% interest
- Kimisitu Sacco: 15% dividends, 9.2% interest
- Ukulima Sacco: 12% dividends, 9.3% interest
How Saccos calculate dividends
Sacco dividends are a big draw for many members. They often beat other investment returns, with some Saccos paying out over 10% or even 20%.
Your Sacco dividend has two parts: interest on deposits and dividends on share capital.
You get both at the end of the financial year.
Dividends on share capital:
- Based on your closing balance at year-end
- Example: If you have Sh100,000 and your Sacco pays 21%, you’d get Sh21,000
Interest on deposits:
- Calculated monthly
- Uses a rate set at the last Annual General Meeting (AGM)
- Applied on a compound basis
Let’s look at an example. Say Mwalimu National SACCO pays 12% interest on deposits. Each month, they’ll:
- Check your closing balance
- Apply a 1% interest rate (12% divided by 12 months)
- Add this to your balance
- Repeat for the whole year
Let’s calculate the monthly compounding interest for a Sh250,000 deposit:
Certainly, let’s calculate the returns based on a Sh250,000 closing balance for deposits with a different Sacco. We’ll use Mwalimu National SACCO, which offers an 18% dividend on shares and a 12% interest on deposits.
How Saccos calculate dividends
Sacco dividends are a big draw for many members. They often beat other investment returns, with some Saccos paying out over 10% or even 20%.
Your Sacco dividend has two parts: interest on deposits and dividends on share capital.
You get both at the end of the financial year.
Dividends on share capital:
Based on your closing balance at year-end
Example: If you have Sh250,000 and your Sacco pays 18%, you’d get:
[ 250,000 \times 0.18 = 45,000 \text{ Ksh} ]
Interest on deposits:
Calculated monthly
Uses a rate set at the last Annual General Meeting (AGM)
Applied on a compound basis
Let’s look at an example. Say Mwalimu National SACCO pays 12% interest on deposits. Each month, they’ll:
- Check your closing balance
- Apply a 1% interest rate (12% divided by 12 months)
- Add this to your balance
- Repeat for the whole year
Let’s calculate the monthly compounding interest for a Sh250,000 deposit:
Initial balance: Sh250,000
Monthly interest rate: 1% (12% annually)The formula for compound interest is:
Where:
is the amount of money accumulated after
years, including interest.
is the principal amount (Sh250,000).
is the annual interest rate (12% or 0.12).
is the time the money is invested for in years (1 year).
Interest earned:
So, with a closing balance of Sh250,000, you would earn approximately Sh31,706.25 in interest on deposits over the year. Combining this with the dividend on shares, your total earnings would be:
This is a simplified calculation assuming the initial balance remains unchanged and does not take into account any additional deposits or withdrawals.
This method rewards members who keep their money in the Sacco longer. The more you save and the earlier you do it, the more you earn.
Nyati Sacco is known for high payouts. They’ve given 21% on share capital and 11% on deposits. Other top performers include:
- Magadi Sacco
- Tower Sacco
- Mombasa Port Sacco
- Yetu Sacco
How to pick the right SACCO for you
Choosing a SACCO isn’t just about high dividends. You need to consider several key factors to make the best choice:
Check if you’re eligible to join. Many SACCOs started for specific groups but have opened up to the public. Make sure you meet their membership requirements.
Look at the SACCO’s financial healthFinancial health refers to the state of one's personal financial situation and reflects the ability to meet financial obligations, maintain savings, a... .... Since you’ll share in both risks and rewards, pick a stable SACCO to protect your money.
Think about what services you need. Some SACCOs offer both front and back office services, while others are more limited. Pick one that matches your needs.
Consider the location. Even with mobile banking, you may need to visit in person sometimes. Choose a SACCO you can easily reach.
Make sure it’s properly regulated. Check that the SACCO is registered with SASRA, the official regulatory body in Kenya.
Don’t rush your decision. Take time to compare different SACCOs. Ask questions and review their financial reports if available.
Maximizing your savings with Saccos
Saccos offer great benefits for your money. You can save, get loans, and earn dividends. These dividends often beat what you’d get from company stocks. Many Sacco members are very happy with their returns.
If you want to grow your money, joining a Sacco could be a smart move. You’ll have chances to save, borrow when needed, and potentially earn good dividends. It’s a way to make your money work harder for you.
Saccos stand out for their strong dividend payouts. This makes them an attractive option compared to other investments. By picking the right Sacco, you could see your savings grow faster than you might expect.
Common questions about high-dividend SACCOs in Kenya
Which Kenyan SACCOs offer the best dividend payouts?
Nyati SACCO stands out as a top performer for dividends in Kenya. In recent years, it paid an impressive 21% dividend on share capital and 11.3% on member deposits. Other strong contenders include:
- Magadi SACCO
- Tower SACCO
- Mombasa Port SACCO
- Yetu SACCO
These SACCOs have shown a commitment to rewarding members with competitive returns on their investments.
How do SACCO dividend rates stack up in 2024?
The landscape of SACCO dividends in Kenya is dynamic. While exact figures for 2024 are still emerging, several SACCOs have announced promising returns based on their 2023 performance.
To get the most up-to-date information, you should:
- Check SACCO websites regularly
- Attend annual general meetings
- Speak with SACCO representatives
Remember, past performance doesn’t guarantee future results, but it can give you an idea of a SACCO’s financial health.
Which Kenyan SACCOs have a track record of high dividends?
Consistency is key when looking at dividend history. Some SACCOs that have maintained high dividend payments over time include:
- Mwalimu National SACCO
- Stima SACCO
- Unaitas SACCO
These SACCOs have built reputations for reliable returns, making them popular choices for many Kenyans seeking stable investment options.
What should you look at when seeking high-dividend SACCOs in Kenya?
When evaluating SACCOs for their dividend potential, consider these factors:
- Financial stability
- Asset size
- Membership growth
- Loan portfolio quality
- Management efficiency
A SACCO with a strong balance sheet and prudent management is more likely to sustain high dividend payments over time.
How have top SACCO dividend rates changed in Kenya recently?
Dividend rates among Kenyan SACCOs have seen some fluctuations in recent years. Factors influencing these changes include:
- Economic conditions
- Regulatory changes
- Competition from banks and mobile money services
Can you name SACCOs in Kenya that have boosted their dividends lately?
Specific data on recent dividend increases is limited. However, some SACCOs have shown positive trends.
For example, Yetu SACCO reported an 18% dividend share on capital, indicating strong performance.
To identify SACCOs with improving dividends:
- Monitor financial reports
- Look for SACCOs investing in technology and expanding services
- Pay attention to those growing their membership base
These factors often correlate with a SACCO’s ability to increase dividend payments over time.
