What is the difference between a SACCO dividend and interest on deposits?

Two different things. Dividend is paid on your share capital (your ownership stake), reflecting the SACCO's profit. Interest is paid on your deposits (BOSA and FOSA savings), and is more like a bank's savings interest. Both are declared at the AGM.

When is the dividend paid?

After the AGM, typically March or April, once the previous year's audited accounts are approved. Dividends are usually credited to your member account and can be withdrawn or reinvested.

Are SACCO dividends taxed?

Yes. Dividends declared by SACCOs are subject to withholding tax at the prescribed rate. Interest on deposits is also subject to withholding tax. Confirm the current WHT rate with a tax advisor or KRA.

What has Stima Sacco paid historically?

Specific per-year figures for Stima Sacco vary and must be verified against the SACCO's AGM notice or SASRA supervisory reports. Kenyan top-tier DT-SACCOs have historically paid share dividends in the low-double-digit range and deposit interest in the high-single-digit range. Marked unverified where we do not cite a specific primary source.

Can I reinvest the dividend?

Yes. Most SACCOs allow you to elect to have the dividend added to your share capital or deposits automatically. This compounds your ownership stake and future dividend.

Stima Sacco dividends 2026: shares vs deposits interest

Stima Sacco dividends and interest on deposits (Kenya 2026)

How Stima Sacco pays dividends on shares and interest on deposits, the AGM cycle, and what recent-year rates have looked like across the industry. Specific rates marked unverified where the primary source is a PDF or an internal AGM circular. Verified 26 August 2026.

by Arnold Ochieng Reviewed by Michael Mwangi 9 min read Updated 26 August 2026Verified 26 Aug 2026

Dividend on shares vs interest on deposits

This distinction is the most misunderstood point about SACCOs.

Dividend on share capital. Paid on your shares (your ownership stake). Reflects the SACCO's profit for the year, declared at the AGM as a percentage of paid-up share capital.
Interest on deposits (BOSA and FOSA). Paid on your deposits, this is closer to a bank's savings interest rate. Also declared at the AGM.

Your total return in a year is share dividend + deposit interest. When you see a headline like "12 percent SACCO return", it is almost always the sum of the two, not a single dividend rate on the whole balance.

How the AGM cycle works

The financial year for a Kenyan DT-SACCO runs January to December.
The board audits the accounts (usually January to March).
The AGM is called, typically March or April.
Members approve the accounts and the recommended dividend and interest rates.
The declared amounts are credited to member accounts, either as cash or as additional shares/deposits, at the member's election.
Withholding tax is deducted at source before payment.

What Stima Sacco has paid historically

This is where we have to be honest about the source problem. SASRA publishes annual supervisory reports (available on sasra.go.ke/sacco-supervision-reports), and each SACCO publishes its own AGM circular with the declared rates. Both are typically PDF, and the AGM circular is often only distributed to members.

Rather than assert year-by-year figures we cannot cite to a specific primary source, we mark specific historic figures as unverified pending the AGM circular. Members of Stima Sacco will have received the past AGM notices and can cross-check.

Industry context. Across the Kenyan DT-SACCO industry (per SASRA supervisory reports), share dividends among top-tier SACCOs typically sit in the 8 to 15 percent range and deposit interest in the 6 to 11 percent range, with declared amounts varying year to year with earnings and prudential reserve requirements.

Year	Share dividend	Deposit interest	Source
2020	Unverified	Unverified	Confirm with Stima Sacco AGM circular
2021	Unverified	Unverified	Confirm with Stima Sacco AGM circular
2022	Unverified	Unverified	Confirm with Stima Sacco AGM circular
2023	Unverified	Unverified	Confirm with Stima Sacco AGM circular
2024	Unverified	Unverified	Confirm with Stima Sacco AGM circular
2025	Unverified	Unverified	Confirm with Stima Sacco AGM circular

Withholding tax on SACCO dividends and interest

Both share dividends and deposit interest declared by SACCOs are subject to withholding tax at the source. The SACCO deducts the tax and remits to KRA; you receive the net amount. Rates and thresholds change; confirm the current rate with a tax advisor or KRA. See our overview in SACCO dividend explained.

Reinvest or take cash?

Most SACCOs let you choose:

Cash to your FOSA / M-PESA. Useful if you need liquidity.
Add to share capital. Increases your future dividend base, at the cost of tying up the money in shares (60-90 day withdrawal notice).
Add to deposits. Middle ground: increases interest-earning balance and future loan multiplier, remains withdrawable subject to guarantor commitments.

Sources

SASRA register of Licensed Deposit-Taking SACCOs, sasra.go.ke/licensed-dt-saccos, accessed 26 August 2026.
SASRA SACCO Supervision Annual Reports, sasra.go.ke/sacco-supervision-reports. Industry-level dividend and interest ranges cited here draw on the supervisory reports; per-SACCO rates require the individual SACCO's AGM circular.
Stima Sacco website, stima-sacco.com. Members should refer to the most recent AGM circular for definitive per-year declared dividend and interest rates.
SACCO Societies Act No. 14 of 2008, particularly the provisions on annual audits, reserves and dividends.