Sacco Societies Regulatory Authority (SASRA) is set to propose a law that will see the National Treasury deduct money directly from funds allocated to public agencies.
This is after the Sacco Supervision Report for 2022 indicated that 80 regulated Saccos did not get Ksh2.67 billion from employers, which were deductions from the pay of 66,452 Sacco members.
According to the report, County Governments and Assemblies owed the highest portion of non-remitted funds standing at 49.97 per cent, amounting to Ksh1.35 billion.
Public universities and tertiary colleges followed owing Ksh620.52 million which accounts for 23.01 per cent of the total non-remitted funds.
About 75 per cent, or Ksh2.01 billion, is deductions due to Saccos for repayment of loans members owe, while Ksh680 million is Back Office Saving Activity which members take monthly.
“The failure to remit deductions for loan repayments means these members cannot access new loans from the Saccos and it also affects the financial operation of Saccos, especially cash flows,” read part of the report.
However, due to increased efforts by sector players to enhance compliance with remittance of deductions, these non-remittances have dropped from Ksh3.4 billion recorded in 2021.
By Thuita Jaswant
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