Ever heard of SACCO dividend? It can help to pay a portion of your bills.
But first let’s talk about the cost of living in Kenya which is steadily rising, posing challenges for individuals to meet basic expenses such as housing, food, taxes, and healthcare.
Inflation plays a significant role in driving these increases. Both the salaried and those in business often struggle to keep pace.
Many find themselves resorting to borrowing so that they can maintain their living standards, leading to increased financial pressure. In the face of life’s unexpected challenges and unyielding bills, finding innovative ways to manage expenses becomes crucial.
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The Sacco Solution: A Beacon of Financial Empowerment
Amidst these financial challenges, the concept of utilizing SACCO dividend income emerges as a promising solution. But what exactly is a SACCO, and how does it work?
A SACCO is a member-based financial service institution where individuals pool their savings to provide loans to fellow members. This self-help organization not only encourages regular saving but also offers attractive dividends and easier access to credit compared to traditional banks.
The Benefits of Joining a SACCO
Firstly, SACCOs promote regular saving by requiring members to contribute a fixed monthly amount.
These savings often attract superior interest rates, with dividends ranging from 8-15% per annum. Moreover, borrowing a loan is more straightforward within a SACCO, allowing members to borrow up to three times their savings with minimal paperwork.
Crucially, SACCOs offer stability in interest rates, unlike banks that frequently adjust their rates based on external factors. Additionally, SACCOs aim to empower members financially by owning assets such as land, houses, and other investment opportunities.
How to Get Started with Sacco Dividend Investing
To leverage SACCO dividends to pay bills, a strategic approach is necessary.
Begin by listing all your monthly expenses, including rent, insurance, utility bills, food, transportation, education, entertainment, and others. Calculate your average monthly expense to set a benchmark. Categorize and quantify your monthly expenses, using apps or spreadsheets for better tracking.
Begin by replacing one bill at a time with Sacco dividends. For example, My internet costs about Ksh 2500 a month right now. That equates to an annual cost of Ksh 30,000.
If I’m starting from scratch, here’s how I’d go about paying it with Sacco dividend income.
SACCOs pay a dividend every financial year.Take for instance Stima Sacco, they offer a dividend yield of 14% and 11% interest on share capital. This equates to an average yield of just over 12.5%.To get Ksh 30,000 a year from my SACCO dividends, I’d need to invest roughly Ksh 300,000.
It may not be easy to come up with an extra Ksh 300,000 today, but the important thing is to get the passive-income machine rolling.
For starters, it’d be nice even to pay just 10% of the internet bill (investing only Ksh 30,000) from passive income.
Gradually replace each bill with SACCO dividend income as your passive-income stream grows. This method allows for a sustainable transition without overwhelming financial constraints.
Related: How to become rich in Kenya
Top 10 Best Saccos To Join In Kenya
1. Stima Sacco
- Targets employees in the Energy sector
- Sh53.8 billion in assets
- 177,000 members
- 12 branches
Membership Details
- Sh500 registration fee
- Sh25,000 minimum shares
- Sh1000 minimum monthly contributions
Financial Benefits
- 15% dividend on shares
- 11% interest on deposits
Loan Services
- One-day loan processing
- Access salary loans up to Sh3 million
- Instant mobile app loans up to Sh120,000
- You can borrow up to 5 times your deposit.
- Interest rate as low as 1% pm on reducing balance
Banking Features
- Has a Shariah-compliant banking system
- Low-premium insurance products
- Instant Visa ATM cards
- M-Stima app is available on Playstore and Appstore
- *492# USSD
2. Mwalimu National Sacco
- Targets public education sector employees
- Sh64 billion in assets
- 123,000 members
- 18 branches
Membership Details
- Sh2,050 registration fee
- Sh20,000 minimum shares
- Sh1,000 as monthly contributions
Financial Benefits
- 10.5% dividend on shares
- 10% interest on deposits
Banking Features
- You can borrow up to 5 times your deposit.
- Interest rate as low as 1.5% pm
- Low-premium Sh400 pm insurance product
- Debit cards available
- Mwalimu Hela app on Playstore/Appstore
- *633# USSD
3. Kenya Police Sacco
- Targets civil servants and salaried employees
- Sh54 billion in assets
- 73,000 members
- 8 branches
Membership Details
- Sh2,000 registration fee
- Sh50,000 minimum shares
- 12% of salary as monthly contributions
Financial Benefits
- 17% dividend on shares
- 11% interest on deposits
Banking Features
- You can borrow up to 4 times your deposit.
- Loan Interest rate as low as 1.3% pm
- Low-premium Sh400 pm insurance product
- M-Tawi app is available on Playstore and Appstore
- *653# USSD
4. Harambee Sacco
- Targets civil servants and other salaried employees.
- Sh37 billion in assets
- 65,000 members
- 5 branches
Membership Details
- Sh1,000 registration fee
- Sh30,000 minimum shares
- Sh3,000 min. monthly contributions
Financial Benefits
- 10% dividend on shares
- 8% interest on deposits
Banking Features
- You can borrow up to 4 times your deposit.
- Loan Interest rate as low as 1.15% pm
- Visa ATM cards are available
- Harambee M-cash app on Playstore/Appstore
- *357# USSD
5. Towers Sacco
- Targets public sector employees
- Sh19.7 billion in assets
- 250,000 members
- 25 branches
Membership Details
- Sh500 registration fee
- Sh2,000 minimum shares
- Sh500 min. monthly contributions
Financial Benefits
- 20% dividend on shares
- 13% interest on deposits
Banking Features
- You can borrow up to 5 times your deposit.
- Loan Interest rate as low as 1% pm
- ATM cards are available
- Tower Sacco app on Playstore/Appstore
- *655# USSD
6. Imarisha Sacco
- Targets everyone
- Sh19.8 billion in assets
- 160,000 members
- 13 branches
Membership Details
- Sh360 registration fee
- Sh20,000 minimum shares
- Sh1,600 min. monthly contributions
Financial Benefits
- 14% dividend on shares
- 11% interest on deposits
Banking Features
- You can borrow up to 3 times your deposit.
- Loan Interest rate as low as 1% pm
- ATM cards are available
- M-imarisha sacco app on Playstore/Appstore
- *451# USSD
7. Hazina Sacco
- Targets all employees
- Sh12.7 billion in assets
- 19,000 members
- 4 branches
Membership Details
- Sh1,000 registration fee
- Sh15,000 minimum shares
- Sh1,000 (or 5% of salary) min. monthly contributions
Financial Benefits
- 17% dividend on shares
- 10.8% interest on deposits
Banking Features
- You can borrow up to 5 times your deposit.
- Loan interest rate as low as 1.1% pm
- Debit cards are available
- Hazina Sacco app on Playstore/Appstore
- *850# USSD
8. Kenya Bankers Sacco
- Targets banking sector employees
- Sh9.5 billion in assets
- 25,000 members
- 8 branches; 3 sub-branches
Membership Details
- Sh1,000 registration fee
- Sh30,000 minimum shares
- Sh3,000 min. monthly contributions
Financial Benefits
- 10% dividend on shares
- 7.5% interest on deposits
Banking Features
- You can borrow up to 3 times your deposit.
- Loan interest rate as low as 1% pm
- Debit cards are available
- KB connect app on Playstore/Appstore
- *293# USSD
9. Safaricom Sacco
- Targets Safaricom and other corporate employees
- Sh10.5 billion in assets
- 18,000 members
- 2 branches
Membership Details
- Sh1,000 registration fee
- Sh40,000 minimum shares
- Sh3,000 min. monthly contributions
Financial Benefits
- 13% dividend on shares
- 8% interest on deposits
Banking Features
- You can borrow up to 3 times your deposit.
- Loan interest rate as low as 1% pm
- Debit cards are available
- SafCIRI app on Playstore/Appstore
- *345# USSD
10. Mhasibu Sacco
- Targets corporate workers and their family members, groups and some students
- Sh8.6 billion in assets
- 20,000 members
- 2 branches
Membership Details
- Sh1,000 registration fee
- Sh10,000 minimum shares
- Sh1,650 min. monthly contributions
Financial Benefits
- 16% dividend on shares
- 9% interest on deposits
Banking Features
- You can borrow up to 5 times your deposit.
- Loan interest rate as low as 1% pm
- Debit cards are available
- Mhasibu Pro app on Playstore/Appstore
- *657# USSD
Final Thoughts on Sacco Dividends Investing
In times of economic uncertainty, having a passive income stream to manage bills is invaluable. SACCO dividend investing presents an accessible and effective way to build such income.
By leveraging the benefits of SACCOs, individuals can take charge of their financial well-being and gradually free themselves from the cycle of debt.
Embrace the power of SACCO dividend income and pave the way for a more financially secure future.
