Reporter
A new trend is fast gaining currency in most organization when it comes to handling Savings and Credit Co-operatives (SACCO) contributions.
It has emerged that many organizations in Kenya often religiously make deductions from members salaries, but then fail to submit the same monies to Saccos.
Instead, they sue the monies to pay for other bills – hoping to sort the Saccos some other times. One wonders what these people are smoking.
This trend is common in Saccos that are affiliated to companies or organisations, where deductions are made in a check-off system.
Organisations going through a rough financial patch are notorious defaulters.
Kenya Union of Savings and Credit Co-operatives (KUSCCO) has now raised concern after many Kenyans went to them to seek help.
Take the case of Johnson, not his real name, who resigned from a top media house in Kenya in 2022, but is yet to get his Sh250,000 he had saved in the Sacco.
“I saved the money religiously during my time at the company, only to come to learn that not even a cent went to the Sacco. I understand the media house owns the Sacco over Sh70 million,” he said.
Reports indicate that Saccos are owed more than Sh4.2 by various county governments, universities, parastatals and many other private institutions.
Kenya Union of Savings and Credit Co-operatives (KUSCCO) is worried that many Saccos could go under.
“Non-remittance of Sacco dues by employers has resulted in liquidity challenges, where some Saccos are unable to disburse loans to members leading to loss of members’ confidence,” KUSCO Managing Director George Ototo said.
Many Kenyans are beginning to avoid Saccos like plague, after some people who guaranteed friends were left paying for loans after their friends failed to pay their loans.
DID YOU KNOW
1.SACCO Societies Regulatory Authority (SASRA) is the primary regulatory body charged with licensing Deposit‑Taking Sacco Societies in Kenya.
2. KUSCCO is the umbrella body of SACCOs in Kenya, and was registered in 1973.