SACCO Dividend Calculator (Kenya)

Background.

A SACCO member may receive a dividend on paid-up share capital and an amount described as interest on non-withdrawable deposits or a FOSA/BOSA balance. The current Kenyan Income Tax Act contains a special rule for these payments. Section 3(3)(b) says a bonus or interest paid by a designated co-operative society is deemed to be a dividend. That means the member-interest line should not be treated merely as ordinary bank interest without checking the co-operative provisions; for income-tax classification it follows the dividend rule.

The type of co-operative matters. Section 19A(4) specifically covers a designated primary society registered and carrying on business as a credit and savings co-operative society—the statutory description that matches the SACCO scope of this page. The Act's qualifying-dividend definition excludes payments made by designated co-operative societies subject to section 19A(2) or section 19A(3), but it does not name a savings and credit co-operative under section 19A(4). In this expressly narrowed scope, a resident individual's SACCO share dividend and deemed-dividend member interest use the Third Schedule's 5% qualifying-dividend rate. A non-resident uses the 15% dividend rate, subject to any applicable East African Community proviso or treaty relief that this calculator does not decide.

This distinction also explains why a blanket statement that every co-operative distribution is either 5% or 15% is unsafe. A society taxed under section 19A(2) or section 19A(3) falls within the statutory exclusion from qualifying-dividend status and may require the generic resident-dividend treatment. This calculator is only for a credit and savings co-operative within section 19A(4). If the payer is another kind of co-operative, an exempt society, or a corporate structure that is not a designated SACCO, do not use this result without confirming the classification.

The calculation multiplies share capital by the AGM-declared dividend rate, applies the residency rate, and reports the gross dividend, withholding, and net dividend. It separately applies the same residency rate to member interest because the Act deems that interest to be a dividend, then combines the gross amounts, withholding amounts, and net payouts. No unverified KES 12,000 exemption is assumed. The official SACCO withholding certificate remains the filing record. KRA says resident withholding on a qualifying dividend is final tax; non-resident, treaty, EAC, corporate-member, society-level tax, and disputed classification questions remain outside this simple member calculator. This is an educational estimate, not a KRA assessment or professional tax or legal advice; confirm the official certificate and obtain advice for any classification, treaty, or filing question.

What is sacco dividend calculator?

This calculator estimates withholding on two distributions from a Kenyan savings and credit co-operative within section 19A(4): an AGM-declared return on share capital and member interest. Section 3(3)(b) deems the interest to be a dividend. Because the qualifying-dividend exclusion names societies under section 19A(2) and section 19A(3), not the SACCO in section 19A(4), this scoped calculator uses 5% for a resident and 15% for a non-resident on both components.

It does not classify other co-operative societies, apply the non-resident EAC proviso or treaties, or replace the official withholding certificate. Confirm the payer's statutory classification if it is not plainly a registered savings and credit co-operative.

How to use this calculator.

1. 01Enter your total SACCO share capital in KES, from your member statement.
2. 02Enter the dividend rate your SACCO's AGM declared for the period — check your AGM notice or dividend advice.
3. 03Enter the FOSA or BOSA deposit interest credited to your account for the same period, from your account statement.
4. 04Select your tax residency status — most members should leave this at 'Resident.'
5. 05Read the primary result: your total net payout combining both income streams after withholding tax.
6. 06Review both components and compare the estimated residency-based withholding with the SACCO's official withholding certificate.

The formula.

Gross share dividend equals share capital multiplied by the AGM rate. For the section 19A(4) SACCO scope, the calculator applies 5% for a resident or 15% for a non-resident and subtracts that withholding to obtain the net dividend.

The FOSA/BOSA member-interest amount is shown separately for reconciliation. Section 3(3)(b) deems interest paid by a designated co-operative society to be a dividend, so the calculator applies the same residency rate rather than treating it as ordinary bank interest. Net member interest is the entered amount minus that withholding.

Combined gross income, withholding, and net payout are the sums of the two components. This narrow model does not apply to a co-operative taxed under section 19A(2) or section 19A(3), and it does not model EAC or treaty relief.

A worked example.

Frequently asked questions.

References& sources.

1. [1]Kenya Revenue Authority — Withholding Tax rate table (dividends and interest), individual withholding tax
2. [2]Kenya Law — current Income Tax Act, sections 2, 3(3)(b), 19A, and the Third Schedule
3. [3]Kenya Law — Sacco Societies (Non-Deposit-Taking Business) Regulations, member dividend and interest disclosures