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Mwalimu National Sacco mass exit over corruption claims and reduced dividends. How dividends are calculated.

Teachers have vowed to quit Mwalimu National Sacco in masses after the former giant Sacco reduced the dividends payable on the teachers’ savings to 9.3%. 

Teachers became bitter and teamed up in social media to start the journey of quitting the Sacco citing mass corruption by the Sacco directors. 

The delegates had pledged not to approve the budget until the dividends are paid at least 12%. They accused bribery of a section of some delegates by the Sacco directors to approve the budget. 

Members have now resolved to leave and join other young but well-performing Saccos such as WINAS and STIMA Sacco.

HOW TO CALCULATE DIVIDENDS

Sacco Dividends are usually calculated on a Prorata basis (Prorated), meaning each contribution from ‘your payslip earns You interest. Below is the formula used;

  • SACCO DEPOSITS (as of December 2019=) SD Monthly Contribution – MC

Let’s assume your SD as of 31/12/2019 were KES 550,000 and your MC is 6000 an interest on deposits is 9.3%. You first calculate earnings from your opening Balance as below;

Then proceed to calculate your earnings from your Monthly contributions;

MOMTHMC            MEAN         DIVIDEND 9åYOUR EARNINGS
O.8aIanœ550,000 x (12/12) x (9.3/100).51,150
JANUARY60o0     x     11/12    x       9.3/100511.50
F68RUARY6000     x    10/12     x      9.3/100465.00
MARCH6000     x       9/12   x      9.3/100418.5
APRIL5000 x       8/12   x      9.3/100372.00
MAY6000x       7/12    x       9.3/100325.50
June6000 x       s/12   x       9.3/100279.00
JULY6000    x      5/12    x      9.3/100332.50
AUGUST6000     x     4/12    x       9.3/100186.00
SEPTEMBER6000     x     3/12     x        9.3/100139.5
OCTOBER6000     x      2/12   x        9.3/10093.00
NOVEMBER6000   x      1/12   x       9.3/10046.5
DECEMBER6000    X       0/12    X        9.3/1000
TOTAL Dividends54,219

Sum up your earnings from your SD and MC from January to December; what you get is your Gross Dividend Now take the Gross Dividend and less 5% Which-holding Tax, what you get is now your Net Dividend 54,219*95/100 =51,508.05 will be your around that figure.

Also, note that the Dividend percentage Is usually declared during the Members Annual general meeting. The figure may increase or decrease depending on Sacco’s financial performance in the previous year.

The above calculation excludes Interest on Capital shares (usually KES ZD,000)

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