Hundreds of retired public servants are demanding urgent government action over delayed Sacco payments, some of which have remained unsettled since the early 1990s.
The Retirees Benefits and Claims Welfare Association of Kenya (REBECLWAK) has formally written to the Ministry of Cooperatives, urging CS Wycliffe Oparanya to intervene.
In a letter dated July 9, 2025, the association said retirees are suffering financial hardship due to unpaid savings held by Sacco societies. Despite several letters, in-person visits and follow-ups, the Ministry has not responded, worsening the situation for many of the affected former workers.
The group criticized the slow government response, saying issues raised during a meeting with the CS in August 2024 have not been addressed.
A follow-up letter sent on August 27, 2024, highlighted complaints including broken promises from Sacco societies, mismanagement of funds and lack of proper communication channels.
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REBECLWAK attributed the delays to bad governance, poor regulation and increasing number of unmonitored Sacco societies. It also said that the government lacks a proper support framework for retirees, leading to uncertainty and prolonged suffering.
In the same letter, the association requested a bailout for 1,034 retirees whose savings, totaling to about Ksh158 million, are still locked in Transcom Sacco Society Ltd. They also called on the CS to issue clear instructions to Lamu Teachers Sacco, Ukulima Sacco (Lamu branch), Tana Tea Sacco and Ulinzi Sacco Society to provide updates and payment timelines.
The group further proposed amendments to the Sacco Societies Bill to ensure retirees receive their refunds within a set timeframe. They also called for penalties on delays and suggested that retirees’ Sacco deposits be formally recognised as retirement benefits under the law.
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In another letter dated April 16, 2025, REBECLWAK asked the Competition Authority of Kenya (CAK) to investigate Sacco societies that deny or delay payouts to retired members, even in cases involving serious illness. The association said it had encountered cases where former workers had lost property or struggled with medical expenses while waiting for their own savings.
A similar appeal was made to the CEO of Afya Sacco Society Limited on March 25, 2025. The association accused the Sacco of ignoring withdrawal requests and continuing to deduct contributions from retirees who had already requested to exit.
By March 2025, REBECLWAK had compiled detailed records of complaints involving various Sacco societies. Transcom Sacco in Nairobi was listed as the largest offender, while other affected institutions included Ulinzi Sacco, Lamu Teachers Sacco, Sonyaco, Migori Teachers Sacco, Metropolitan Sacco, Tana Teachers Sacco, Afya Sacco and Ufundi Sacco.
The retirees are urging the Ministry of Cooperatives, SASRA, and other regulators to act swiftly and prevent further delays in releasing funds owed to former public servants.
By Benedict Aoya
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