Delay by counties to remit staff contributions hampering smooth operations of Saccos

Beatrice Mogire Afya Sacco chairperson.

The delays and sometime failure by counties to remit deductions to Saccos has hampered their smooth running and even risking liquidity.

Saccos now say that employer institutions’ failure to honour their obligations of remitting Sacco deductions affects the financial performance of these firms, despite various policy and administrative measures being put in place to address the problem.

Beatrice Mogire, Afya Sacco chairperson said that they have to tolerate the delays some running more than a year.

“We have counties who have not remitted money for over 15 months and others. The most current counties that remit are still behind by two months. This is affecting us in a big way,” said Mogire.

Proceedings during Afya Sacco AGM.

The chair says that the trend has greatly affected Saccos which draw their membership from various employer-firms.


Lands Committee wants Cooperatives Ministry to intervene over liquidation of Drumvale Sacco

Among the counties he said that were notorious for this trend include for non-remittance are Isiolo, Marsabit, Wajir, Kakamega and Mombasa.

We were affected by devolutions we were used to receive a single cheque from the Government right now we receive 47 cheques while some counties are reluctant and are not remitting money on time it affected our cash flow in a way,” added Mogire.

Ranked fifth with an asset base KSh22 billion, Afya Sacco membership, approximately 90 per cent, comprise civil servants in the health sector.

The SASRA Annual Supervision Report, in its annual report released in the third quarter of 2023, showed that Saccos were owed approximately KSh2.7 billion in non-remitted funds by various employer institutions.

SASRA also indicated that its advisory note to employers has been effective in addressing the issue.

By our reporter

Get more stories from our website: Sacco Review

For comments and clarifications, write to:

Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates

Stay ahead of the pack! Grab the latest Sacco Review newspaper!


Sharing is caring!

Not Allowed