Societies: Pay dividends to members electronically, orders commissioner

Network Sacco Chairman Edward Teka (left) and Head of HR Standard Group Nicholas Siwatom at Standard Group along Mombasa road. [Jonah Onyango/Standard]

Cooperative societies will pay dividends without subjecting members through the prerequisite annual general meetings.

Acting Commissioner for Cooperatives Geoffrey Njang’ombe ordered payment of dividends and interests on deposits to members forthwith.

Mr Njang’ombe in the directive dated March 26, also gave reprieve to officials of cooperatives whose terms of office expires before the AGMs are held to continue their terms.

The payment according to the circular to all cooperative societies directed payment of the dues for those whose financial statements have been audited and submitted to the commissioner.

“The payment of the dividends and interest on deposits will eventually require ratification of the members in the next annual general meeting,” said the commissioner.

A week ago, the commissioner issued a circular to county cooperative officers suspending meetings to comply with government order of social distancing and public meetings.

Murang’a that has more than 100 cooperative societies among them financial-based ones had lined up to hold their AGMs in between March and May.

Peter Kamande, a member of Amica Sacco lauded the move by the commissioner saying the payout of dividends will go a long way to help members undergoing financial challenges.

“We have been concerned how the meetings will be conducted due to the fears of contracting Covid-19,” said Kamande.   

Some societies had already conducted the AGMs before the government banned public gatherings following the global spread of the coronavirus, while others had issued notices of intend to hold the meetings.

Among the major financial cooperative Saccos in the county are Unaitas, Amica and Mentor.