Sacco members should expect a significant cut on their dividend payout this season following Income Tax changes that took effect last month. The new law doubled taxes on members’ dividends from five to 10 per cent as well as withholding tax rate applicable to the dividends payable by a Sacco as an institution. In total, Kenya Revenue Authority will take away 20 per cent of each Sacco member’s dividends compared to the 10 per cent it has been charging since 1973. This will be a shocker to many Sacco members who are not aware of new changes, even as Annual General Meetings are called. Co-operatives Alliance Kenya chief executive Daniel Marube yesterday said it will be painful for Sacco members who are already shouldering taxes from other quotas.

Source: The Star February 18, 2019 19:41 UTC