SACCO return announcements often contain more than one percentage. The two figures that confuse people most are the dividend on share capital and the rebate or interest on deposits.
They are not the same return, because they usually apply to different balances.
Dividend on share capital
Share capital represents the member's ownership stake in the SACCO. A dividend percentage is generally applied to that share-capital balance, subject to the SACCO's rules and the declaration approved for the year.
If your share capital is much smaller than your total deposits, a very high dividend percentage may still produce a smaller shilling amount than the deposit rebate.
Deposit rebate or interest
Member deposits are the savings balance that may also support borrowing eligibility. A rebate or interest percentage is generally linked to that deposit balance, again subject to the SACCO's own rules and annual declaration.
A simple example
Imagine a member has KES 20,000 in share capital and KES 200,000 in deposits. A 17% dividend on the shares would be calculated on KES 20,000, while an 11% deposit rebate would be calculated on the relevant deposit balance under the SACCO's rules. The two amounts should be calculated separately.
What else should you compare?
- Minimum share capital and whether it is withdrawable.
- Deposit requirements and withdrawal rules.
- Membership eligibility.
- Loan access, guarantor rules and borrowing costs.
- Deductions, taxes or retained amounts that may apply.
- The year of the declaration — SACCO returns are typically annual, not live daily rates.
Why Amka separates the two columns
A single “SACCO return” column would hide the distinction. Amka therefore shows dividends on shares and deposit rebates separately and sorts the published data without calling the highest percentage the best SACCO.
The next step is to compare the published numbers, then read the SACCO's latest AGM communication and membership terms before making a decision.