Dividend policy and surplus allocation are essential aspects of SACCO and cooperative financial governance. This training equips leaders with the knowledge and tools to make fair, transparent, and sustainable financial distribution decisions that benefit members and ensure long-term institutional health.

For more insights on SACCO training and governance, visit Kenya SACCOs Champions.

Course Overview on Dividend Policy and Surplus Allocation

This course focuses on how surpluses should be managed, shared, or reinvested according to cooperative values and legal guidelines. Participants will learn how to create policies that balance growth, stability, and member benefit.

Course Content on Dividend Policy and Surplus Allocation

  • Introduction 
    Learn the purpose and principles of distributing surpluses in SACCOs.

  • Legal and Regulatory Framework
    Understand the Cooperative Societies Act and SASRA regulations guiding surplus distribution.

  • Types of Dividends
    Explore different dividend types—interest on shares, rebates, and patronage refunds.

  • Policy Formulation and Approval
    Learn how to draft clear dividend policies aligned with SACCO goals and values.

  • Member Involvement in Dividend Decisions
    Discover strategies for engaging members in surplus-related decisions.

  • Balancing Reinvestment and Payout
    Explore methods to maintain financial sustainability while rewarding members.

  • Case Studies and Best Practices
    Analyze successful dividend models from leading SACCOs and cooperatives.

Duration

The training runs for 3 hours and includes interactive segments such as group discussions, real-world examples, and Q&A sessions.

Course Objectives

By the end of this course, participants will be able to:

  • Understand the fundamentals of dividend policy and surplus allocation.

  • Align dividend policies with cooperative values and legal standards.

  • Engage members in surplus decisions to increase transparency.

  • Create balanced approaches to reinvestment and member rewards.

  • Avoid common pitfalls and promote financial health through strategic surplus use.

Target Audience

This training is ideal for:

  • SACCO board members and senior management

  • Cooperative financial officers and accountants

  • Policymakers and regulators

  • Trainers and cooperative development officers

  • Any cooperative members involved in financial decision-making

Conclusion

A strong dividend policy and surplus allocation strategy helps SACCOs grow while keeping members satisfied and engaged. This training builds the skills needed to manage surpluses wisely, enhance trust, and achieve financial stability. For more info,visit:https://saccochampions.co.ke/#

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