Gusii Mwalimu SACCO will start paying Esteemed Members their 2020 dividends as from Monday 22 March, 2021. However, members have found it hard to understand how the amount that was paid as dividends was reached at. Jambo News has dug deep to unearth the formula used by the sacco.
Gusii Mwalimu Sacco decided to calculate dividends of members at montly level. This means that contribution made at the month of January accrued more dividends compared to subsequent months.
In statement, management of the sacco, encouraged members to use M-banking, Sacco-link and ATM channels to access cash. This will help in minimizing crowding in banking hall as much as possible.
“In compliance with M.O.H guidelines on covid-19 management, you are encouraged to use M-banking, Sacco-link and ATM channels to access cash. Avoid crowding banking hall as much as possible,” read part of the statement.
How Gusii Mwalimu Sacco Calculated 2020 Dividends
It is important to note that dividends are paid at two levels of percentages; 13% of capital shares that is usually 20,000 for each member and 12% of the amount of shares.
Suppose the rebates on deposits of a member as at December 2019 is Kes. 100,000, capital shares at ksh 20,000 and he/she contributes Kes. 5,000 monthly, the total dividends will be calculated as follow:
|HOW TO CALCULATE FOR DIVIDENDS||AMOUNT IN KSHS|
|12% of 100,000(Shares as at December 2018)||12,000|
|13% of 20,000(Capital shares)||2,600|
|12% of 5,000(January Contribution)||600|
|12% of 5,000 x 11/12(February contribution)||550|
|12% of 5,000 x 10/12(January contribution)||500|
|12% of 5,000 x 9/12(March contribution)||450|
|12% of 5,000 x 8/12(April contribution)||400|
|12% of 5,000 x 7/12(May contribution)||350|
|12% of 5,000 x 6/12(June contribution)||300|
|12% of 5,000 x 5/12(July contribution)||300|
|12% of 5,000 x 4/12(August contribution)||250|
|12% of 5,000 x 3/12(September contribution)||200|
|12% of 5,000 x 2/12(October contribution)||150|
|12% of 5,000 x 1/12(November contribution)||100|
|5% of 18, 750 ( Withdrawal Tax)||937.5|
|AMOUNT RECEIVED AS DIVIDENDS (18,750-937.5)||17,812.50|
Note that dividends is subject to the following deductions:
- Excise duty
- Processing fee
Amount expected in your account (net) is the Actual amount (as Calculated above) minus any advance amount taken.
According to one of Gusii Mwalimu Sacco delegates who sought anonymity, the method above was reached in a bid to encourage members to start saving as early as January.
Members who make huge deposits close to the end of the year won’t reap big as per their expectations.