Ngogoyo wrote:That's below market average of 9% and 20%. Whats going on?
Most likely that management feels that it's balance sheet is strong and does not need to attract more capital.
Remember that 20% of 50m is very different from 20% of 500m, i.e it makes sense to pay a smaller percentage if your capital is large, else you'll soon find yourself not retaining any earnings.
Other saccos are offering high returns in order to attract membership. They too will reach a point of diminishing returns as they mature.