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SACCO's end year results - Dividend Rates comparison
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Chaka
#121 Posted : Thursday, January 24, 2019 10:27:11 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Oh my,so the only way out is not to declare a dividend?
Angelica _ann wrote:
Chaka wrote:
What if the members decide to plough back the dividends as savings and borrow the same at 0% interest?
Sir invest wrote:
10% withholding tax on ANY Sacco dividend earned from Jan 2019.



You can only plough back net of w/holding tax - that is what you are entitled to.

Kulipa ushuru ni kujitegemea!
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Ericsson
#122 Posted : Thursday, January 24, 2019 10:50:57 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Chaka wrote:
Oh my,so the only way out is not to declare a dividend?
Angelica _ann wrote:
Chaka wrote:
What if the members decide to plough back the dividends as savings and borrow the same at 0% interest?
Sir invest wrote:
10% withholding tax on ANY Sacco dividend earned from Jan 2019.



You can only plough back net of w/holding tax - that is what you are entitled to.

Kulipa ushuru ni kujitegemea!



Dividends have to be declared,members will be up in arms if saccos fail to declare.
Sacco members most of them aren't keen on the tax,what matters is money
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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peep
#123 Posted : Friday, January 25, 2019 11:09:10 PM
Rank: Member

Joined: 3/30/2009
Posts: 56
Chaka wrote:
Oh my,so the only way out is not to declare a dividend?

Dividend declared is a tax deductible expense. If you don't declare it then your taxable income is higher. You are better of declaring a high one to reduce tax exposure.
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gatoho
#124 Posted : Saturday, January 26, 2019 1:59:17 AM
Rank: Member

Joined: 1/1/2010
Posts: 518
Location: kandara, Murang'a
As I asked elsewhere, what's so special about Sacco dividends? Why not all divs??
Foresight..
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kawi254
#125 Posted : Saturday, January 26, 2019 11:23:34 AM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
gatoho wrote:
As I asked elsewhere, what's so special about Sacco dividends? Why not all divs??


Foreign investors will run and Jubilee GoK only cares for those; local investors you got nowhere to run.

Sad that GoK is raiding Wanjiku's savings.
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DangerMouse
#126 Posted : Thursday, February 28, 2019 12:24:19 PM
Rank: Hello

Joined: 2/28/2019
Posts: 6
Location: Nairobi
Safaricom Sacco gave out a paltry 6% interest on member's weighted deposits and 12% on share capital for 2018. Add onto that the increased taxation on dividends. Sigh
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Ngogoyo
#127 Posted : Thursday, February 28, 2019 1:30:53 PM
Rank: Member

Joined: 6/22/2011
Posts: 561
Location: House
That's below market average of 9% and 20%. Whats going on?
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Muthawamunene
#128 Posted : Thursday, February 28, 2019 7:48:13 PM
Rank: Member

Joined: 1/3/2011
Posts: 264
Location: Nairobi
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.
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Chaka
#129 Posted : Thursday, February 28, 2019 8:02:57 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Maybe its to retain membership..
Muthawamunene wrote:

Other saccos are offering high returns in order to attract membership. They too will reach a point of diminishing returns as they mature.
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kawi254
#130 Posted : Thursday, February 28, 2019 8:19:43 PM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
Ngogoyo wrote:
That's below market average of 9% and 20%. Whats going on?


=IFRS9
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