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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
The SACCO Societies Regulatory Authority (SASRA) has cautioned SACCO members against fixating on high dividend payouts, warning that outsized returns can mask underlying financial weakness and ultimately harm the institutions members depend on.
The regulator published its advisory on LinkedIn and X on Thursday, November 12, timed to coincide with the period when SACCOs across Kenya are preparing for their Annual General Meetings (AGMs) and Annual Delegates Meetings (ADMs), when dividend and deposit interest rates typically dominate member discussions.
How to choose and join a SACCO in Kenya that offers loans to members
SASRA acknowledged that dividends and interest on deposits are legitimate member benefits, but argued they should not eclipse the core purpose of the cooperative model, which is to help members save regularly, access affordable credit and improve their broader financial well-being.
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The regulator drew a contrast between two hypothetical SACCOs: one offering high dividends but struggling with loan recovery, capital adequacy and…
