KSh 200,000 in a SACCO paying 12.0% earns KSh 22,800 after tax.
How SACCO dividends are paid out
Each year, your SACCO's AGM declares a dividend rate based on the surplus generated. That rate is applied to your share capital, not your savings deposits, which typically earn separate interest. A withholding tax is deducted from the gross dividend before it reaches you, either as a payout or a credit to your account.
This calculator gives you an estimate for planning purposes; check with your specific SACCO for the exact rate declared at their most recent AGM.
Rates used in this calculator
SACCO dividend withholding tax
Withholding tax on dividends and interest
5%
Frequently asked questions
How are SACCO dividends calculated?
Your SACCO dividend is your share capital multiplied by the dividend rate the SACCO's AGM declares for the year, usually expressed as a percentage.
Is withholding tax deducted from SACCO dividends?
Yes, resident individuals typically have withholding tax deducted from SACCO dividend payouts before the net amount is paid out or credited to their account.
Why do dividend rates vary between SACCOs?
Each SACCO's board proposes a dividend rate based on that year's surplus, approved at the AGM, so rates differ SACCO to SACCO and year to year.