Mwalimu, Other Kenyan SACCOs that Paid Over KSh 1b in Dividends Amid KUSCCO Scandal
- Kenya's Savings and Credit Co-operative Societies (SACCOs) increased 2024 dividend payments from KSh 41.34 billion to KSh 46.99 billion
- The government advised SACCOs to limit dividend payments due to the KUSCCO scandal, where they lost KSh 13.3 billion
- Mwalimu National Sacco topped the list of the largest dividends at KSh 5.11 billion, followed by Stima Sacco at KSh 5.07 billion
Japhet Ruto, a journalist at TUKO.co.ke, offers more than eight years of experience covering finance, business, and technology, providing in-depth analysis of economic trends in Kenya and worldwide.
Kenya's Savings and Credit Co-operative Societies (SACCOs) increased 2024 dividend payments to KSh 46.99 billion.
Source: Twitter
This is despite warnings to reduce the dividends because of concerns about losses from the multibillion-shilling scandal at Kenya Union of Savings and Credit Co-operatives Ltd (KUSCCO).
According to disclosures made by the top 40 SACCOs based on deposits, dividends increased by 13.7% from the KSh 41.34 billion paid to members in the previous fiscal year.
The multibillion shilling payouts came even as the government advised 247 SACCOs to restrict dividend payments and write-offs of losses related to the KUSCCO scam.
Which Kenyan SACCOs paid the highest dividends?
Business Daily reported that the top five SACCOs disbursed KSh 19.06 billion, representing 40.5% of dividends paid by 40 financial institutions.
At KSh 5.11 billion, Mwalimu National Sacco paid out the largest dividend, followed by Stima Sacco at KSh 5.07 billion.
Tower Sacco (KSh 2.43 billion), Harambee Sacco (KSh 2.38 billion), and Kenya National Police Sacco (KSh4.07 billion) rounded out the list of saccos with distributions exceeding Sh2 billion.
Imarisha, Hazina, Mentor, Gusi Mwalimu, Bandari, Invest & Grow, and Trans Nation paid between KSh 1.05 billion and KSh 1.97 billion.
Source: Twitter
SACCO members receive dividends on their share capital and interest on their deposits.
How much was lost at KUSCCO?
KUSCCO officials were accused of bookkeeping fraud, widespread executive theft, bribery, mysterious bank withdrawals, and conflicts of interest by awarding contracts to companies owned by top managers.
They also allegedly hid the schemes by falsifying financial statements to show non-existent profits.
Ultimately, KSh 13.3 billion was lost, leaving the SACCO umbrella insolvent. This put KSh 24.8 billion deposited by 247 SACCOs at risk.
Saccos like Qona, formerly known as Safaricom Sacco, increased dividends while violating a global accounting regulation that requires cooperatives to record losses in full.
Which SACCOs made provisions?
Several SACCOs provisioned millions of shillings in KUSCCO shares and deposits.
This was according to various 2024 annual reports and financial statements which were made public during the Annual General Meetings (AGMs) in January and February 2025.
An impairment of KSh 568.66 million in KUSCCO shares and deposits was announced by Invest and Grow (IG) SACCO.
In the same period, Tembo SACCO reported KSh 115.83 million, while Ushuru SACCO registered KSh 7.785 million.
One of the top cooperative societies, Stima SACCO, announced that it has set aside KSh 108.0 million in response to concerns surrounding the recovery of KUSCCO shares.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
