Which is the highest dividend paying Sacco in Kenya in 2021? This should be the question at the back of your mind if you have resolved to join one of the many Sacco’s in the country this year. When you join a Sacco, you are entitled to dividends and interests. You should, therefore, look for a Sacco that gives you the highest return on your savings.
Saccos are the best alternative banking options as they provide members with low-interest rates while offering them high dividends. The best Saccos in the country pay higher dividends than banks on savings, making them a popular choice among Kenyans looking for savings and investment opportunities.
What are dividends in a Sacco? A dividend is the sum of money you receive from your Sacco out of the profits and reserves made for a certain period. When you join a Sacco, you are entitled to dividends and interests. Members can get their dividends monthly, quarterly, semiannually, or annually depending on the policy.
Saccos pay dividends to all members with balances in deposits and share capital for a given financial year. Most Saccos pay their members’ dividends after approval, usually done after the Annual General Meeting.
There are so many Saccos in Kenya offering dividends, but which is the highest dividend paying Sacco in Kenya in 2021? I have sampled for you the best and recognised Saccos, which offer some of the highest dividends to their members.
1. Stima Sacco
Stima Sacco is undoubtedly the Sacco with the highest dividends in Kenya. The Sacco was established in 1974 and has gradually grown over the years to become the best Sacco in the country. It is one of the most reliable Saccos to join as it offers its members a great opportunity to save and get credit. Its membership is open to all Kenyans as it accepts membership from individuals, groups, and corporates. Stima Sacco has been ranked as the best dividend-paying Sacco in Kenya in 2021. In 2020, the Sacco’s board of directors recommended a dividend of 14 percent per share on fully paid-up shares.
2. The Kenya Police Sacco
The Kenya Police Sacco was ranked the second-best performing Sacco after Stima Sacco. Sacco membership is open to all people, contrary to its Sacco name. It was registered in 1972 though it began its operations in 1973. The Sacco has over 52k members and has one of the highest dividend and interest rates. The Sacco pays dividends and interests every year to all the members who have balances in deposits. It offers loans up to 3 times the savings an individual has made in the Sacco. Members are usually required to repay their loans in 48 months at an interest rate of 13.5% per annum.
4. Hazina Sacco It was registered as a Sacco in 1971 and became a deposit-taking Sacco after being registered by SARSA. Hazina Sacco membership is open to government employees, employees from parastatals and private organizations, private individuals, corporates, and chamas. The Sacco gives loans of up to three and a half times the value of the savings you have with a repayment plan of 72 months with 1% per month interest. Payment of dividends and interest rebates on shares and deposits are usually made once a year through FOSA savings accounts.
5. Safaricom Sacco
Safaricom Sacco was founded in May 2001 to serve the common bond Safaricom Ltd Employees. At the moment, the Sacco membership has been extended to include family members of already present members and employees from related technology companies. If you become a Sacco member, you will need to contribute Kshs 3400 towards your share capital which stands at Kshs 40,000. The Sacco pays dividends on share capital to all the members who have met the statutory minimum shares of Kshs. 40,000.
6. Sheria Sacco
Sheria Sacco was formally registered in 1972. Over time, the membership of the Sacco has grown. It boasts of more than 10,000 members drawn from the Judiciary, AG chambers, and government ministries. The membership has been expanded to include any person above the age of 18 years with an income. The minimum share capital for each member is Kshs. 20,000, which earns dividends for the member. It is important to note that the share capital is non-withdraw-able but transferable upon the termination of membership.
7. Unaitas Sacco
It was registered in 1993 by a group of farmers who wanted a place to save and get loans at affordable rates. Over time, the Sacco opened its membership to medium-sized business people, salaried employees, and members from all walks of life. The Sacco boasts of more than 320,000 members countrywide.
It offers loans of up to 3 times your savings with a payment period of 72 months at attractive interest rates. The Sacco has been paying a dividend of between seven and 10 percent over the years but has now introduced a special payout dubbed loyalty dividend that will see qualifying members earn up to an additional three percent.
Now you have all the information you need to know about the highest dividend paying Sacco in Kenya in 2021. Sacco’s are a great way of investing money, and if you haven’t thought of joining one, you are missing out on a great investment opportunity. Make sure you join a registered Sacco to avoid losing your hard-earned money to wakoras.