Understanding how SACCO dividends are calculated helps members estimate their annual returns and compare different SACCOs effectively.
The Dividend Calculation Formula
Most Kenyan SACCOs use this basic formula:
Dividend = (Surplus × Member Patronage) / Total Patronage
Key Components:
| Component | Description |
|---|---|
| Surplus | Net profit after expenses and reserves |
| Member Patronage | Your share purchases + loan interest paid |
Factors Affecting Your Dividend
1. SACCO Performance
Higher SACCO profits mean more surplus for distribution.
2. Your Participation
More shares and loans increase your patronage.
Frequently Asked Questions
Most Kenyan SACCOs pay dividends annually between March and June after AGM approvals.