Complaints from Sacco members rose to 764 in 2024, up from 715 in 2023, according to the latest Annual Sacco Supervision Report by the Sacco Societies Regulatory Authority (SASRA). This increase reflects growing concerns among members, particularly regarding the refund of savings and the transfer of shares.
SASRA reported that 64.27% of all complaints in 2024 were related to refunds of savings and deposits as well as the transfer of shares, making these issues the most frequently raised by members. The regulator attributes this trend mainly to confusion and a lack of awareness, especially among former members.
Most complaints are lodged by individuals who have already withdrawn from Sacco membership, often without understanding that shares are non-withdrawable. At the time of exit, there may not be an immediate market available to transfer those shares. This misunderstanding has become a recurring challenge for both Saccos and regulators. SASRA emphasizes that awareness of member rights and obligations is critical to preventing such disputes. The authority has been utilizing social media and digital platforms to educate Sacco members and encourages individual Saccos to enhance member education, especially during onboarding, annual general meetings, and training sessions.
In addition to share-related issues, there are several other categories of complaints that have been raised. Loan and loan issuance concerns account for 12.04% of the total complaints, making it the second most significant issue. General complaints follow, representing 9.03% of the concerns expressed. There is also a notable issue regarding the delayed payment of benefits to the families of deceased members, which constitutes 2.88% of the complaints. Suspected fraud is another area of concern, making up 2.36%, while 2.09% of complaints relate to the irregular deduction of deposits.
Additionally, there are disputes involving guarantors and loan guarantees, accounting for 1.70%. Issues with the Credit Reference Bureau (CRB) listings contribute to 1.31% of the complaints, and there are complaints regarding the failure to pay dividends on time, which represent 2.62%. A smaller percentage, at 0.26%, is related to the misuse of security provided by members, and disputes over electoral processes account for 0.52%. The non-remittance of deductions by employers accounts for 0.79% of cases, while irregular transactions in Front Office Services Activity (FOSA) accounts account for a mere 0.13%.
To address the ongoing complaints regarding share refunds, SASRA recommends that Saccos maintain minimum shareholding requirements while actively promoting internal mechanisms for share transfer and enhancing communication during the membership withdrawal processes.
As Saccos continue to play a central role in Kenya’s financial inclusion efforts, SASRA’s report highlights the importance of member education, ethical leadership, and responsive customer service to uphold public confidence in the cooperative sector.
