SACCO Capital Dividends & Deposit Rebates Explained
Savings and Credit Cooperative Organizations (SACCOs) offer some of the highest compound returns on investments in Kenya. Annual payouts are split into two: Dividends on Share Capital and Rebates on Member Deposits.
Understanding Your Sacco Earnings:
- Share Capital: This represents your non-refundable ownership stake in the Sacco. It generally yields higher dividend rates (typically 12%-18%) but cannot be withdrawn, only transferred or sold to another member.
- Member Deposits: These are refundable monthly savings used as collateral for Sacco development loans. Saccos pay interest/rebates on these savings (typically 8%-12% annually).
- Taxation: Sacco dividend and rebate payouts are subject to a flat withholding tax of 10% for residents.