Is Buying Shares in a SACCO Profitable? (The 2026 Verdict)

The short answer is: Yes, exceptionally so. In the 2025/2026 financial cycle, SACCOs have outperformed many traditional asset classes in Kenya. While the Nairobi Securities Exchange (NSE) has seen volatility and Fixed Deposit rates have struggled to beat inflation, top-tier SACCOs have consistently delivered double-digit returns.

The 2025/2026 Profitability Benchmark

In Kenya, profitability is measured by the "Dividend Rate" on share capital. Unlike interest on deposits (which is usually lower), dividends are a direct share of the SACCO's annual surplus.

To help you choose where to invest, here is a comparison of the top-performing societies based on their most recent financial disclosures.

Top 10 SACCOs by Dividend Performance (2025/2026)

Comparing Profits: SACCO Shares vs. MMFs and T-Bills

For a Kenyan investor in 2026, the big question is often: "Should I put my money in a Money Market Fund (MMF) or buy SACCO shares?"

1. Returns: While MMFs in Kenya are currently averaging 11% to 14%, top SACCOs like Tower or Kenya Police are hitting 17% to 20%.

2. Taxation: SACCO dividends are subject to a 10% Withholding Tax, whereas MMF interest is often taxed at 15%. This means you keep more of your profit in a SACCO.

3. Compounding: Most SACCOs allow you to "capitalize" your dividends—automatically buying more shares with your profit. Over 5 years, this creates a compounding effect that can double your initial investment.

The Role of the Secondary Market

The only "hidden cost" to SACCO share profitability used to be the lack of liquidity—you couldn't get your money out quickly. However, with the rise of marketplaces like Saccoshares, this is no longer the case.

• Sellers can now liquidate their "locked" capital when they need cash for emergencies or new projects.

• Buyers can jump into high-performing SACCOs by purchasing existing shares, often bypassing long waiting periods or minimum entry requirements.