Top 15 Highest Dividend Paying SACCO In Kenya [2024]

The SACCO Societies Regulatory Authority (SASRA) has published its 2023 list of licensed SACCOs in the country. But other than certification, most people are interested in the highest dividend paying SACCO in Kenya.

By the end of 2022, the highest dividend paying SACCO in the country was Nyati SACCO, with a 21% dividend share on capital and an 11.3% payout on members’ savings or deposits. 

Completing the top 5 list are Magadi SACCO, Tower SACCO, Mombasa Port SACCO, and Yetu SACCO. Other than Yetu SACCO, which had an 18% dividend share on capital, the others had a 20% payout which is fantastic. 

Other SACCOs making the top 10 list are Bandari SACCO, Olin SACCO, Unison SACCO, IG SACCO, and Winas SACCO in the same order. All these SACCOs had a dividend payout of at least 15%, which explains the ranking. 

I’ll discuss all these SACCOs in detail to enable you to identify the best-paying option for you and make an investment decision. Overall, here’s what I’ll discuss:

• What’s a SACCO?
• What are dividends?
• How do you earn dividends?
• How are dividends calculated?
• Which month do SACCOs pay dividends?
• Best dividend paying SACCOs in the country

Let’s dive in!

In a rush? Consider the best SACCO dividends in Kenya as of December 2022 in the table below:

10 Highest Dividend Paying SACCO in Kenya (As of December 2022)

–	SACCO Identity	Registration	Minimum Share Capital	Interest on Member’s Deposit	Dividend on Share Capital
1.	Nyati SACCO	Ksh 500	Ksh 30,000	11.3%	21%
2.	Magadi SACCO	Ksh 2,000	Ksh 20,000	14%	20%
3.	Tower SACCO	Ksh 500	Ksh 500	13%	20%
4.	Mombasa Port SACCO	Ksh 500	Ksh 1,000	12.5%	20%
5.	Yetu SACCO	Ksh 1,000	Ksh 200	13%	18%
6.	Bandari SACCO	Ksh 1,000	Ksh 10,500	11.50%	18%
7.	Olin SACCO	Ksh 0	Ksh 40,000	12%	17.5%
8.	Unison SACCO	Ksh 1,000	Ksh 40,000	12.5%	17%
9.	IG SACCO	–	Ksh 100	12.2%	17%
10.	Winas SACCO	Ksh 500	–	12.58%	15%

What’s A SACCO?

The term SACCO is short for savings and credit cooperative society, and a SACCO is generally a financial institution founded by members with a common interest. For example, we’ve SACCOs for teachers like TransNation SACCO and Mafanikio SACCO, SACCOs for accountants like Mhasibu SACCO, and SACCOs for business people like the Biashara SACCO. 

SASRA (SACCO Societies Regulatory Authority) regulates SACCOs in Kenya. Their main goal is to enable their members to save and earn a return on their savings, access loan facilities and receive dividend payments. 

Let’s focus on the last benefit. 

What Are Dividends in SACCOs?

Dividends refer to the amount you regularly receive from the profits that accrued yearly. Dividends are paid monthly, quarterly, semi-annually, or annually depending on the SACCOs terms and policies. 

These regular payments motivate you to save more. The more you do it, the higher the dividend payouts. 

How Do You Earn Dividends In A SACCO in Kenya?

Dividends are payment rewards for the shares you own (your contribution) in a SACCO. Ordinarily, a SACCO pays dividends when it has a surplus in its reserve at the end of a given financial year. 

Overall, SACCOs pay two types of dividends. First, weave payouts on members’ savings which applies to members with a deposit account. 

Second, they pay dividends to those who hold shares. But overall, the dividend on shares usually is higher than on members’ deposits. 

For example, Nyati SACCO, Kenya’s best-paying SACCO, had a 21% dividend on share capital and 11% on deposit in 2022. 

How Are Dividends Calculated in a SACCO in Kenya?

SACCOs use different formulas to calculate dividends, and here are two of the commonest:

a)  Flat Rate Dividend Calculation 

The Flat Rate technique is the most straightforward of the two. It only requires two considerations: members’ end-of-year SACCO shares and the total dividend payout for the members. 

Here’s the formula for calculating dividends using the Flat Rate technique:

Dividends = the members’ end-of-year share ÷ member’s total share × dividend amount

Let’s consider SACCO X, whose dividend amount is Ksh 100,000, and the total members’ share is Ksh 5,000,000. Suppose a member had Ksh 50,000 worth of shares; how much will he receive as a dividend?

If we apply the above formula, it’ll be 50,000 ÷ 5,000,000 × 100,000. That will give us Ksh 1,000. That’s how much the member will get as a dividend. 

Pros of Flat Rate

• Simple to work out 
• Easy to understand 

Cons of Flat Rate 

• Discourages members from saving early as they’ll receive the same dividend regardless of the time they opt to save (it’s not fair)
• It does not favor the SACCO either, as it eats most of its reserve when members save late

b) Pro Rata Dividend calculation 

Unlike the Flat Rate technique, which does not distribute dividends uniformly, Pro Rata does just that. It distributes the dividend payouts proportionately by allowing monthly interest allocation to SACCO members. 

For that reason, Pro Rata involves converting annual rates into monthly rates. In this case:

The dividend rate = Declared end-of-year shares ÷ outstanding end-of-year total shares × 100%

Let’s take this example:

SACCO Y declared shares worth Ksh 1,000,000, while the total shares at the end of the year equaled Ksh 20,000,000. What will be the dividend rate?

The dividend rate = 1,000,000 ÷20,000,000 × 100%

That gives us 5%. But since this is an annual rate, we must divide it by 12 to get the monthly rate (which will be 0.42%). In that case, the members will earn dividends at a rate of 0.42%.

Pros of Pro Rata 

• It’s fair, as the earlier the members save, the more the payout 

Cons 

• It’s not as straightforward as Flat Rate technique

Which Month Do SACCOs Pay Dividends in Kenya?

Most SACCOs in Kenya pay dividends at the end of the year once they sit for the annual general meeting (AGM) and approve the payment. So, the month is not specific, as it depends on where the AGM falls in a particular year. 

15 Best Dividend Paying SACCOs in Kenya

Dividend-wise, below are 15 of the best SACCOs in Kenya:

1. Nyati SACCO – Highest Dividend Paying SACCO in Kenya 2023

Nyati SACCO has been the best-paying SACCO for the past two years. The SACCO first registered a 21% dividend on share capital in 2021 and ended 2022 with the same margin. Even better, Nyati maintained (in 2022) the 11.3% interest on the members’ deposit rate it recorded in 2021, which shows its dominance in the Kenyan SACCO market.

Nyati was first registered as a SACCO under the Cooperative Societies Act in 1977. So, they now enjoy over 45 years of experience. Nyati draws its members from the business community, diaspora, registered groups, SACCO employees, corporate organizations, and individual investors.

Today, Nyati enjoys more than 33,000 members and offers 20-plus financial products. Even better, its total asset portfolio stands at Ksh 4.7 Billion, while its loan product size sits at Ksh 3.63 Billion and relishes a net operating income of Ksh 300 Million.

Nyati requires new members to register with Ksh 500 and make a minimum monthly deposit of Ksh 1,800 and a monthly Benevolent fee of Ksh 240. Meanwhile, the minimum share on capital is currently at Ksh 30,000, which is higher than most SACCOs but worth it if considering the dividend payout rate. 

Nyati allows members who have been active for at least three months to apply for loan multiples of up to 4 times their non-withdrawable deposit. However, they must deposit Ksh 5,000 to qualify, and those needing multiple loans must provide guarantors.

2. Magadi SACCO 

Though Magadi SACCO was founded to cater to the savings and loan needs of Magadi workers, it is now open to non-Magadi members. That means anyone can join if they meet the joining threshold and make the necessary monthly contributions. 

The registration fee is Ksh 2,000, and the minimum capital share is Ksh 20,000. As of December 2022, the dividend on share capital and the payout on members’ savings were 20% and 14%, respectively. The loan multiple, as is the case of Nyati SACCO, is 3. 

3. Tower SACCO 

Founded initially to cater to the financial interests of primary school teachers, Tower SACCO now accepts members from all walks of life. Anyone can join Tower SACCO, from the teaching and non-teaching staff to the Kenya defense and hospital workers. 

Tower SACCO ended 2022 with a 13% interest on members’ deposits and maintained the 20% dividend on the share capital rate it recorded in 2021. The current joining fee is Ksh 500; you need a minimum share contribution of Ksh 10,000.

Like Magadi and Nyati SACCOs, Tower SACCO offers loan multiples of three times the members’ savings. 

4. Mombasa Port SACCO 

The Mombasa port SACCO might have started as a SACCO for the Mombasa ports workers but is now open to all. That includes individuals, Chamas (self-help groups), and cooperatives. 

This SACCO’s most recent dividend payout share capital and members’ savings are 20% and 12.5%. The minimum capital share is Ksh 40,000, while its joining fee is Ksh 500. 

Individual members must contribute Ksh 1,000 monthly, while groups contribute Ksh 5,000 monthly. 

5. Yetu SACCO

Yetu SACCO, originally the South Imenti Tea Growers SACCO, is a leading non-deposit-taking SACCO in the country whose head offices are in Nkubu, Meru County. Though the SACCO was formally registered in 1991, it adopted the name Yetu, a Swahili name for ‘Ours,’ in 2010 to mobilize savings in many other parts of the country.

Yetu draws its members from the farming community, civil service, private sector, microfinance groups, individual investors, and corporate organizations, among many others. That has increased the SACCO’s asset base to about Ksh 5.7 Billion.

Yetu SACCO now operates more than seven branches nationwide and enjoys more than 59,000 active members. Its goal is not only to mobilize saving but also to offer cheap credit, fight illiteracy, and overcome financial exploitation, to name a few.

The SACCO offers more than 40 products and services and currently requires a registration amount of Ksh 1,000 for those who wish to become a member. Its dividend on share capital rate at the end of 2022 was 18%, while the interest on member’s deposits stands at 13%. However, the minimum share capital for locals is only Ksh 200.

6. Bandari SACCO 

Bandari SACCO has a similar story to Mombasa Ports SACCO. It was founded to serve the employees at the port, and now they accept individuals and Chamas outside the Kenyan ports. 

As of December 2022, Bandari SACCO’s dividend on share capital and members’ savings were 18% and 11.5%, respectively. The joining fee is, however, Ksh 1,000, and members should contribute Ksh 1,500 monthly. The minimum capital share is Ksh 10,500. 

7. Olin SACCO

The Olin SACCO just won the 2023 Ushirika Day Awards, which shows how dominant the Kerugoya-hailing Savings and Credit Cooperative Society is.

Olin was founded in 1976 with only 163 members. Now, the SACCO has a membership size of more than 25,000 and 10 branches. Some branches are in Nairobi, Kajiado, Thika, Narok, Kitengela, Mwea, and Kiserian.

Olin offers savings, borrowing, and banking services, and they target public servants, private workers, business communities, SACCO employees, and active and retired teachers, among other targets.

So far, Olin is the SACCO with the highest dividend payout rate in Kirinyaga County, which, as of the end of 2022, was 17.5%. On the other hand, the interest on a member’s deposit rate at the end of 2022 was 12%, while the minimum share capital today is Ksh 40,000.

One requires an active membership of at least two months to qualify for a loan at a multiple of three times their non-withdrawable deposit and have up to 84 months to pay. Loans, however, need security.

8. Unison SACCO

Formerly Laikipia Teachers SACCO (the name it adopted in 2014), Unison SACCO was established in 1977 with less than 100 members. Today, the SACCO has an active membership size of more than 30,000.

The SASRA-licensed non-deposit-taking SACCO targets private companies, entrepreneurs, government employees, micro-credit groups, TSC, and civil servants, among many other targets.

The minimum share capital is 400 shares at a rate of Ksh 100 per share, tantamount to Ksh 40,000. Members need to register with Ksh 1000, and for one to qualify for a loan, they require a 3-month minimum membership.

Performance-wise, Unison ended 2022 with a 17% dividend on share capital and a 12.5% interest on member’s deposits.

9. Invest & Grow (IG) SACCO

Invest & Grow started in 1977 with only 115 members, and after 45-plus years, its membership has grown to over 44,000. The SACCO rebranded in 2015, changing its name from Kakamega Teacher’s SACCO to IG SACCO.

IG SACCO has an asset portfolio size of Ksh 10.5 Billion and relishes seven branches in Western Kenya alone. The SACCO has its head offices at IG SACCO Plaza, Khalisia Road.

As of the end of 2022, IG recorded a 17% dividend payout and a 12.2% interest on share capital. It enjoys an asset portfolio size of Ksh 19.96 Billion and offers a loan multiple of up to 10 times the member’s non-withdrawable deposit.

IG SACCO initially targeted teachers, but they now draw membership from the civil service, private sector, and corporate organizations.

10. Winas SACCO

Previously, Embu Teachers SACCO. Winas SACCO is a SASRA-licensed SACCO founded in 1977 to cater to the financial needs of teachers in Embu County. However, after adopting the name Winas in 2012, the SACCO now draws its members from the rest of the country.

Winas SACCO has an active membership size of 25,000 plus and an asset portfolio of Ksh 9.79 Billion. It offers BOSA and FOSA loans and has head offices at Teacher’s House in Embu Town.

Winas primarily targets members from the TSC (Teachers Service Commission), KNUT (Kenya National Union of Teachers), government sector, disciplined forces, businesses, Chamas/groups, and the farming community.

First-timers need to register with Ksh 500.   

Performance-wise, Winas ended 2022 with a 12.58% interest on members’ deposits and a 15% dividend on share capital, similar to how the SACCO ended 2021.

Other Highest-Paying SACCOs in Kenya

Other high-paying SACCOs in the country include the following:

11. TransNation SACCO

Originally Tharaka Nithi Teachers SACCO, TransNation SACCO is another top-paying SACCO in Kenya. The SACCO closed 2022 with an 18% payout on share capital and 13.1% on members’ savings. 

Members register with Ksh 500 and require a minimum capital share of Ksh 10,000. The minimum monthly contribution per member is Ksh 400, and members can get up to 3 times their savings. 

12. Biashara SACCO

Biashara SACCO is one of the best rewarding SACCOs in the country, and it’s not just about the dividends. Dividend-wise, Biashara SACCO paid out 18% and 13% on share capital and member’s saving, respectively, in 2022. 

And in terms of loan multiples, Biashara SACCO offers up to 5 times the members’ savings. To join Biashara SACCO, you need a minimum capital share of Ksh 50,000 and a Ksh 2,000 joining fee. The monthly contributions are, however, Ks2,500. 

13. Mafanikio SACCO

Mafanikio, a Swahili name for success, is another best-paying SACCO in the country. The SACCO attracts members from the Ministry of Education, the president’s office, and SACCO employees. 

2022 saw Mafanikio payout 18% on share capital and 11% on members’ savings. To date, Mafanikio is among the oldest SACCOs in the country, given that it dates to 1976. 

14. Hazina SACCO

If you are looking for the fastest-growing SACCO in the country, you can’t look beyond Hazina SACCO. At the end of 2022, Hazina SACCO averaged 18% and 10.6% on share capital and members saving, respectively. 

The minimum capital share is Ksh 16,000, members make a minimum monthly contribution, and the joining fee is Ksh 1,000. That gives a total of Ksh 2,000. Hazina SACCO offers loans of up to 4 times the members’ savings. 

15. National Police DT SACCO

The last highest dividend paying SACCO in Kenya is the Kenya National Police DT SACCO. Though its founders initially established it to support the police and their families, anyone can save with the SACCO.

That includes civil servants, non-uniform salaried workers, and business communities. The National Police DT SACCO enjoyed a dividend on the share capital of 17% and a 10.5% payout on members’ savings in 2022. 

Speaking of saving, members can get loans of up to four times their savings. The joining fee is Ksh 2,000, whereas the monthly contribution is Ksh 1,000. 

Closing Remarks 

If you were looking for the highest dividend paying SACCO in Kenya, it has to be Nyati SACCO, given its 21% payout on share capital and 11% dividend on members’ savings. 

However, that doesn’t mean the other nine are not worthy of consideration. Remember, all these SACCOs unite members with a common interest; you only need to identify where you can fit. 

And if you need some clarification, our Cent Warrior team on social media will be happy to help.