SACCOs are cooperative financial institutions designed to pool member resources for savings and credit purposes. Regulated by the SACCO Societies Regulatory Authority (SASRA), these organizations provide affordable loans, secure savings platforms, and dividend payouts that often surpass returns from traditional bank accounts. In Kenya, SACCOs have transformed lives by offering financial services tailored to diverse groups, including teachers, farmers, civil servants, and entrepreneurs.
The appeal of SACCOs lies in their ability to offer high dividends and interest on deposits, making them a preferred choice for Kenyans seeking to grow their wealth. According to recent data, SACCO membership in Kenya grew by 6.57% in 2023, reaching 6.84 million members, driven by heightened public confidence and competitive returns. This article delves into the top-performing SACCOs, trends in dividend payouts, and practical advice for choosing the right SACCO.
Understanding SACCO Dividends and Interest
Before exploring the best SACCOs, it’s crucial to understand the two primary financial incentives they offer:
- Dividends on Share Capital: These are profits distributed to members based on their share contributions, reflecting the SACCO’s financial performance. Dividends are typically paid annually after approval at Annual General Meetings (AGMs).
- Interest on Deposits: This is the return earned on members’ savings or non-withdrawable deposits, calculated on a pro-rata basis. Interest rates often range from 8% to 13%, significantly higher than most bank savings accounts.
For example, a SACCO like Nyati SACCO, which paid a 21% dividend on share capital in 2022, would yield KSh 21,000 on a KSh 100,000 share contribution, showcasing the potential for substantial returns.
Top 10 SACCOs with the Highest Dividends in Kenya (2025)
Based on recent financial reports and industry insights, here are the top 10 SACCOs in Kenya offering the highest dividends and interest rates for the fiscal year ending December 2024. These rankings are derived from performance data, asset growth, and member feedback.
1. Tower SACCO
- Dividend Rate: 20%
- Interest on Deposits: 13%
- Overview: Established in 1976 by primary school teachers in Ol’Kalou, Tower SACCO has grown into one of Kenya’s largest cooperatives, with over 250,000 members and an asset base exceeding KSh 28 billion. In 2024, it reported a 24% revenue growth, distributing over KSh 2.4 billion in dividends.
- Why Join?: Open to all Kenyans, Tower SACCO offers competitive dividends, affordable loans, and a robust digital platform with 19 branches and 300 agents nationwide.
- Membership Requirements: Minimum monthly contribution of KSh 500, entrance fee of KSh 1,000, and share capital of KSh 10,000.
2. Ports SACCO
- Dividend Rate: 20%
- Interest on Deposits: 12.5%
- Overview: Originally founded in 1966 for East African Harbours & Railways employees, Ports SACCO opened its common bond in 2010 to include diverse members. With assets of KSh 10.5 billion, it reported a 49.5% increase in net surplus in 2024.
- Why Join?: Known for high dividends and strong governance, it’s ideal for salaried and non-salaried individuals, including those in the diaspora.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 5,000.
3. Nyati SACCO
- Dividend Rate: 19% (down from 21% in 2022)
- Interest on Deposits: 11.3%
- Overview: Nyati SACCO, established in 1977, serves over 33,000 members from companies like G4S Kenya. It has consistently ranked among the top dividend-paying SACCOs, maintaining strong performance despite a slight dip in 2024.
- Why Join?: Offers up to three times savings in loans and a reliable dividend history, making it attractive for security sector employees and organized groups.
- Membership Requirements: Entrance fee of KSh 500, share capital of KSh 9,000, and monthly contributions of KSh 1,200.
4. Stima SACCO
- Dividend Rate: 16%
- Interest on Deposits: 11%
- Overview: Founded in 1974, Stima SACCO has evolved from an energy-sector cooperative to a national powerhouse with over 170,000 members and KSh 53.8 billion in assets. It celebrated its Golden Jubilee in 2024 with strong financial results.
- Why Join?: Offers high dividends, low-interest loans, and a user-friendly digital platform, making it accessible to all Kenyans.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 10,000.
5. Mwalimu National SACCO
- Dividend Rate: 10.5%
- Interest on Deposits: 10%
- Overview: As Kenya’s largest SACCO by membership, Mwalimu National serves teachers nationwide, with assets exceeding $440 million. It paid out KSh 5.11 billion in dividends in 2024, reflecting its financial strength.
- Why Join?: Ideal for educators seeking education-focused products and consistent returns.
- Membership Requirements: Minimum monthly contribution of KSh 1,600 and share capital of KSh 20,000.
6. Kenya National Police DT SACCO
- Dividend Rate: 15%
- Interest on Deposits: 10%
- Overview: Established in 1972, this SACCO serves police officers, civil servants, and civilians, with an asset base of KSh 12.7 billion. It was named the “Best Managed SACCO” at the 2024 Ushirika Gala Awards.
- Why Join?: Offers fast loan processing and competitive dividends, with seven branches across major towns.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 10,000.
7. Hazina SACCO
- Dividend Rate: 17%
- Interest on Deposits: 10.8%
- Overview: With 29,000 members and assets of KSh 12.7 billion, Hazina SACCO serves public and private sector employees. It’s known for flexible loan products and consistent dividend payouts.
- Why Join?: Suitable for entrepreneurs and government employees, with a low minimum contribution.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 5,000.
8. Unison SACCO
- Dividend Rate: 18%
- Interest on Deposits: 12.6%
- Overview: Unison SACCO has shown steady performance, offering high dividends and interest rates in 2024. It caters to a diverse membership, including professionals and small business owners.
- Why Join?: Strong financial performance and accessible loan products make it a reliable choice.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 10,000.
9. Qona SACCO (formerly Safaricom SACCO)
- Dividend Rate: 13%
- Interest on Deposits: 8%
- Overview: Initially for Safaricom employees, Qona SACCO now serves a broader membership, with assets of KSh 10.5 billion. It paid out KSh 902.6 million in dividends in 2024.
- Why Join?: Offers instant mobile loans and a digital platform, ideal for tech-savvy professionals.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 5,000.
10. Ollin SACCO
- Dividend Rate: 17.5%
- Interest on Deposits: 12.2%
- Overview: The first SACCO in Kenya to operate a Front Office Service Activity (FOSA), Ollin has grown from 163 members in 1976 to over 30,000, with assets of KSh 11.7 billion.
- Why Join?: Strong historical performance and a wide geographical reach with nine branches.
- Membership Requirements: Minimum monthly contribution of KSh 1,000 and share capital of KSh 10,000.
Recent Trends in SACCO Dividend Payouts
The SACCO sector in Kenya has shown remarkable resilience and growth, with several trends shaping dividend payouts in 2025:
- Increased Membership and Assets: SACCO savings grew by 9.95% to KSh 682.19 billion in 2024, reflecting heightened member confidence. Total assets of top SACCOs, such as Tower and Stima, have surpassed KSh 20 billion and KSh 50 billion, respectively, enabling higher dividend distributions.
- High Dividend Rates: Top SACCOs like Tower and Ports consistently offer dividends of 20%, significantly outperforming bank savings accounts, which typically yield 2–7%.
- Digital Transformation: SACCOs are embracing technology, with platforms like mobile apps and online banking improving accessibility. Qona SACCO, for instance, offers instant mobile loans, attracting younger members.
- Regulatory Enhancements: SASRA’s oversight has strengthened governance, with initiatives like the Deposit Guarantee Fund (DGF) ensuring member deposits are secure.
- Sector-Specific SACCOs: SACCOs catering to specific professions (e.g., Mwalimu for teachers, Kenya Police for security officers) maintain strong dividend payouts due to targeted financial products.
Despite challenges, such as the theft of billions at KUSCCO affecting some SACCOs, the sector paid out a record KSh 46.99 billion in dividends in 2024, with top performers like Mwalimu and Stima leading the pack.
How to Choose the Best SACCO for Dividends
Selecting a SACCO requires careful consideration to ensure it aligns with your financial goals. Here are key factors to evaluate:
- Dividend Consistency: Look for SACCOs with a history of stable, high dividends over 3–5 years. For example, Nyati SACCO maintained a 21% dividend rate in 2021 and 2022.
- Financial Stability: Review the SACCO’s asset base and loan portfolio. Tower SACCO’s KSh 28 billion asset base supports its ability to pay high dividends.
- Membership Eligibility: Some SACCOs are profession-specific (e.g., Mwalimu for teachers), while others, like Tower, are open to all. Ensure you meet the criteria.
- Minimum Contributions: SACCOs like Hazina and Qona require low monthly contributions (KSh 1,000), making them accessible to small-scale savers.
- Loan Accessibility: SACCOs often allow borrowing up to three times your savings at low interest rates, enhancing financial flexibility.
- SASRA Regulation: Choose SACCOs licensed by SASRA to ensure transparency and security of funds.
- Additional Benefits: Look for value-added services like digital banking, insurance, or real estate investment opportunities, as offered by Sheria SACCO.
Risks of Investing in SACCOs
While SACCOs offer attractive returns, they come with risks:
- Financial Mismanagement: Poor governance can lead to losses, as seen in the KUSCCO scandal.
- Regulatory Changes: New policies may affect operations or dividend payouts.
- Market Fluctuations: Economic downturns can impact SACCO profitability, affecting dividends.
- Liquidity Risks: Non-withdrawable deposits may limit access to funds, requiring careful financial planning.
To mitigate these risks, research SASRA-regulated SACCOs, review financial statements, and diversify investments across multiple SACCOs or other vehicles like Money Market Funds (MMFs).
How to Join a High-Dividend SACCO
Joining a SACCO is straightforward but varies by institution. Here’s a general guide:
- Research Eligibility: Confirm if the SACCO is open to your profession or region. For example, Stima SACCO accepts all Kenyans, while Mwalimu targets teachers.
- Gather Requirements: Common requirements include:
- National ID or passport
- Recent passport-size photo
- Entrance fee (KSh 500–1,000)
- Minimum share capital (KSh 5,000–20,000)
- Monthly contribution commitment (KSh 500–2,000)
- Complete Application: Submit forms online or at a branch, often with a registration fee.
- Start Saving: Begin contributing to earn dividends and access loans.
Tax Implications of SACCO Dividends
Dividends from SACCOs are subject to a withholding tax in Kenya, typically at 5% for residents and 15% for non-residents, as per the Kenya Revenue Authority (KRA). Consult a tax professional to understand your obligations and ensure compliance.
SACCOs vs. Banks: A Comparison
SACCOs often outperform banks in returns, with dividends of 10–20% compared to bank savings rates of 2–7%. Additionally, SACCOs offer lower loan interest rates (1–1.5% per month) and member-focused services. However, banks provide greater liquidity and a broader range of financial products, making them suitable for short-term needs.
Future Outlook for SACCO Dividends in Kenya
The SACCO sector is poised for growth in 2025, driven by:
- Legislative Support: The Cooperative Bill and Deposit Guarantee Fund will enhance member protection.
- Digital Innovation: SACCOs like Qona and Unaitas are investing in mobile apps and online platforms, attracting tech-savvy members.
- Economic Recovery: Improved economic conditions may boost SACCO profitability, supporting higher dividends.
However, challenges like regulatory changes and financial mismanagement require vigilance. Prospective members should stay informed through SASRA reports and AGM outcomes.
SACCOs remain a powerful vehicle for financial empowerment in Kenya, offering high dividends, affordable credit, and community-driven financial solutions. Top performers like Tower, Ports, and Nyati SACCOs lead the pack with dividends of up to 20%, making them attractive for savers and investors. By carefully evaluating dividend history, financial stability, and membership requirements, you can choose a SACCO that aligns with your goals. As the sector evolves, SACCOs will continue to play a pivotal role in Kenya’s financial ecosystem, driving economic growth and member prosperity.
For more information on joining a SACCO or exploring other investment options, visit SASRA’s official website or contact your preferred SACCO directly. Start your journey to financial freedom today!
