AGADVOKS GLOBALKENYA · ENGLISH
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Co-operative Societies Act

46. Declaration and payment of bonus

Edition: 2023-12-11 · In force

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46. Declaration and payment of bonus

(1)Subject to this section, every co-operative society shall declare each year all bonuses due to members; but, where the bonuses are required for re-investment by the society for capital development, or for the redemption of bonus certificates, the society shall issue bonus certificates to its members in lieu of cash payments, redeemable from a revolving fund established by the society for that purpose.
(2)No co-operative society shall pay a dividend, bonus; or distribute any part of its accumulated funds without a balance sheet and audited account and report disclosing the surplus funds out of which the dividend, bonus or distribution is to be made.
(3)A co-operative society shall pay a dividend at such rate as may be recommended by the management committee and approved by the annual general meeting of the society.
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Source: Kenya Law