Saccos to share Sh3.8b Co-op Bank dividend cheque

Co-op Bank Group CEO Gideon Muriuki. [File, Standard]

Savings and Credit Cooperative Societies (Saccos) are in line for a Sh3.79 billion dividend cheque from the Cooperative Bank of Kenya, pushing their cumulative receipts to Sh25.3 billion in seven years.

The payout, set for mid-June, comes after Co-op Bank Board recommended Sh1 per share dividend amounting to Sh5.86 billion, with Saccos emerging the biggest winners.

Co-op Holdings Co-operative Society, which represents Kenya’s co-operative movement, holds 64.5 per cent stake in the tier I lender, against which it will get majority dividends.

Co-op Bank Board recommended Sh1 per share dividend—being same as payment for 2020 results—offering the cooperative movement much needed shot in the arm.

With this year’s dividend payment, Kenyan co-operatives through Co-op Holdings will have earned Sh25.3 billion in dividend payments from Co-op Bank in the last seven years.

“The board of directors of Co-op Bank made the bold decision to sustain the same level of dividend to shareholders - even during the Covid-19 crisis when many other banks and listed companies decided to withhold dividends,” said Gideon Muriuki, CEO at Co-op Bank (pictured).

Harambee Sacco, with the highest stake (3.83 per cent) will receive Sh145.16 million followed by H&M Cooperative with Sh125.45 million for its 3.31 percent stake.

Kenya Police Sacco will get Sh120.14 million for holding 3.17 per cent stake while Afya Sacco and Masaku Teachers Coop Savings will get Sh111.43 million and Sh110.29 million for 2.94 per cent and 2.91 per cent stakes respectively.

Completing top 10 highest beneficiaries will be Kipsigis Teachers Coop Savings (Sh101.57 million), Cooperative Bank Coop Savings (Sh96.27 million), K-Unity Savings and Credit (Sh90.2 million), Telepost Cooperative (Sh86.41 million) and Nawiri Sacco (Sh69.36 million).