By Robert Nyagah
Members of various university-based Saccos are cash strapped and unable to borrow from their Saccos as their employer failed to remit their deductions that have accumulated to a whopping Ksh4.2 billion.
The managements of several of the Saccos have been struggling to give their members loans, given that they have no cash reserves as they also owe various government agencies more than Ksh50 billion across board.
With most Saccos allowing savers to borrow three times of their savings, it means huge amounts of resources are held back by the debts created by universities failing to make remittances.
Apart from wounding Saccos, those non-remittances also extend to crucial areas such as the National Health Insurance Fund (NHIF), meaning these Kenyans cannot access health insurance.
It comes at a time when University Fund chief executive Geoffrey Monari declared that debts had piled due to financial mismanagement by various universities.
“The University Fund will not bail out the indebted institutions unless they implement reforms to make them financially sustainable,” said Monari.
