Dividends & Rebates FAQ

2025 DIVIDENDS AND INTEREST REBATES FREQUENTLY ASKED QUESTIONS Download

DIVIDENDS AND INTEREST REBATES FREQUENTLY ASKED QUESTIONS
Question	Answer
What are dividends and interest rebates?	Dividends – Interest earned from share capital Interest Rebates – Interest earned from Member deposit. The same deposits are considered when applying for a loan.
What is the % rate of Dividends and Interest rebates approved at the ADM for the year 2025?	In 2025, the approved rates of dividends and Interest was 8% and 10% respectively
When are dividends and interest rebates payments done?	The benefits are due for Payment after Nafasi DT Sacco’s Annual Delegates Meeting (ADM) where the proposed rates are endorsed by the national delegates. Payment date is communicated after the approval by delegates.
How dividends and interest rebates determined?	The rates are determined by the Sacco financial performance, surpluses, and regulatory approvals. After the end of the year, the SACCO Management review the SACCO financial performance by reviewing the book of accounts together with the Auditors. After review, they prepare final accounts with the propose rates of dividends and Interest on deposits and submit to the regulator for registrations as well as to the ADM for approval.
What is Dividend Advance?	This is a loan advanced against dividends to be fully recovered once the dividends are credited to the member account. The advance is based on the previous year’s dividends paid and secured with the expected dividends.
How will I receive my dividends and how much will receive?	Dividends will be credited to the member FOSA saving account. To access them you can use our USSD 645# or 886# . You can also transact using Nafasi Sacco App or withdraw via ATM A text message is sent to your registered number with the details. You may also login to the web portal via https://webportal.nafasisacco.co.ke/ and access the dividend slip A dividend calculator is also available on the Sacco website: https://nafasisacco.co.ke/
If I have not attained the minimum share capital, will I be paid dividends?	Yes. As long as you are an active contributing member you earn dividend on share capital contributed.
How are Interest rebates calculated?	Interest Rebates on Member deposits are computed based on the weighted average/prorata basis depending on how long the funds were held by the Sacco the previous financial year
How are Dividends Calculated?	Dividends on share capital are computed on a straight-line basis by applying the Approved rates to the balances at the close of the previous financial year
How is the dividend and interest rebates calculation period	For the purposes on of dividend computation the year starts in January and ends in December of every year
Why do I get an error message stating “account cannot be fetched” every time I try to access my dividends?	This is because your account is dormant and needs to be activated before you are able to transact on your account.
*What does it mean when you dial 645# and I get an error message stating ‘Your account is inactive please contact the sacco’?**	This means that you have blocked your mobile banking pin. This can however be reactivated and reset immediately. Please call any of our numbers to get guidance on account opening. 0746857405 0728102039 0737479373 0759407259
What are the deductions made after dividends and rebates payout?	The deductions made after dividends and rebates payout include with-holding tax (5%) , dividend processing fees (Kes 300), excise duty on dividend processing fee (20% of 300=60), dividend sms (kes 30) and dividend advance for those who had it.
How often do members receive dividends and rebates?	SACCO members typically receive dividends once a year, based on the SACCO’s annual financial performance, usually declared for the period of January 1st to December 31st.
How do I activate my dormant account?	Write an email to our official email address operations@nafasisacco.co.ke or a letter with your details and intention of reactivating your dormant account.
How long does it take before an account becomes dormant?	An account becomes dormant after 6 months of non-activity.
I tried to access my dividends and rebates and I got an error message stating that I have insufficient funds.	This is most likely because you are trying to withdraw more than what is available for withdrawal in you fosa account. As you withdraw kindly consider Kes 500 which is the minimum operating balance.
How can I maintain an active account and avoid a dormant account?	By transacting either by depositing or withdrawing money from your fosa account and also actively saving in your bosa account.
What is the difference between Fosa and Bosa accounts?	*BOSA* stands for Back Office Services Activities. Here, a member makes a prescribed minimum contribution (Non withdrawable deposits) every month. This money is used as collateral for loans in which you borrow upto 4 times. Such deposits are only withdrawable on cessation of membership and a notice period of 60 days. *FOSA* stands for Front Office Services Activities. This is the banking arm of the SACCO which offers savings as well as transactional accounts to which you can access your money while you are still a continuing member of the SACCO. Such accounts may be used as a salary pay point and funds may be accessed through Visa branded ATMs, Mobile banking and over the counter at our FOSA. The ATM card can be used over the counter at all Co-op bank branches.
What is the difference between Share Capital and Share Deposits?	*Share capital:* The amount representing a member’s portion in the equity of the society as a co-owner. It is not refundable but can be sold to an existing member upon exit. Share capital is not eligible to secure loans or to guarantee. It earns an annual dividend depending on trading results. *Deposits:* Refundable member deposits used to secure loans and to guarantee. Deposits earn annual interest called rebates depending on trading results.