Kenya Union of Savings and Credit Co-operative (KUSCCO) has asked defaulting government institutions to release billions worth of statutory deductions they owe Saccos in the country.
KUSCCO Group Managing Director George Ototo said the non remittance by the two governments had created operational challenges for many Saccos.
Ototo added that it was imperative that urgent solutions are sought to rectify the situation at once.
“The sector faces few challenges which are hindering us from serving members optimally, key among them the persistent non-remittance,” said Ototo.
He wants government institutions like universities, county governments, water companies and fresh produce entities to release statutory deductions owed.
The KUSCCO chief said Saccos need the money to create employment, pay taxes and contribute to the nation’s economy.
In addition, he said they need to manage liquidity ratios as prescribed by the Sacco Societies Regulatory Authority (SASRA).
“There is therefore need for more punitive legal framework against such perennial defaulters, particularly in the public sector, to hold office bearers personally liable,” Ototo noted.
He told delegates that section 35 of the Co-operative Societies Act Cap 490 empowers the Commissioner for Co-operatives to freeze the accounts of the offenders.
“Despite the numerous interventions by the Commissioner, not much has been achieved,” he added.
He thanked cooperative leaders for demonstrating the true spirit of brotherhood through the principle; Co-operation among co-operators.
By Hilton Mwabili