I wonder what you'll call Telepost Sacco which has never declared any dividend since 1999. (Muggers or what?)

We note AGMs for 2012 performance results are on their way,lets educate one another on what your Sacco has done....

Post what rates your Sacco is giving here...

Egerton University Sacco

Dividends 14%

Interest on Deposits 13%

It is generally unsustainable for a sacco to give dividends at above 12% sinnce that is the interest rate they apply on loans.So you sometimes find that some are (1)borrowing loans to pay dividend (2)depleting their general reserves to pay dividends.

I sometimes also feel that the main aim of joining your sacco is to get a loan to fund your own serious investments instead of celebrating those dividends received.

Quite sustainable if you run a product called FOSA, which is another name for shylock.

Mhasibu planned AGM on saturday 27th April. Watawesmake >12 dvd on shares and capital?

MURAMATI?[/quote]
Why do we seem to be celebrating high dividend rates by SACCOs? They are Savings and Credit Cooperatives! Or we add D for Dividends to form SACCODs! What we should aim at in a SACCO is alternative source of cheap and easily accessible credit. Alternative to:BANKS. [/quote]

@Jerry Ditto!
People here are celebrating very little money.You can imagine saving 400K & at the end of the year all you get is 48K.What you should celebrate is being able to get a loan of 1.2Million at a cheap rate & starting a project that can earn you the same 48K per MONTH![/quote]

Ditto!!

@BGL no need for name calling.
I might even understand Saccos more than you do.All that I'm saying is that people should focus more on the cost of the cheap loans offered by Saccos as opposed to "high" dividend rates.
While 12%p.a for you is significant......I once took a loan of less than 1M from the Sacco & my partner & I started a business that makes over 3 times the annual dividend such savings make me....only that we now make such profits monthly!.To me, that is what a Sacco is all about....not waiting for paltry amounts at the end of the year in the name of dividend.
Getting cheap deals on land is cool too.

I agree on focus... There is more personal growth in cheaper loans than in annual dividends.

Thats said, there is no harm in a higher yield. Just like land deals, dividend yields are a plus.

Dividend yields also say something about a SACCO. More often than not, a high yielding SACCO has more projects, has affordable and accessible loans, a healthy member base, checks and balances in place etc. So if you want your cheaper loan and additional perks, a high yielding SACCO is more likely to give it to you.