Non-remittance of Sacco dues by employers remains a challenge for many Saccos, draining them of the necessary liquidity they need to disburse as loans to members.
“Data from affected Saccos show a deficit to the tune of Ksh1.2 billion owed to them from defunct Municipal councils, which are now Counties. Specifically, the Councils and Counties in transgression are Malindi Council in Kilifi County; Kakamega, Butere, Mumias, Lugari and Malava Councils in Kakamega County; Mombasa, Murang’a, and Vihiga Counties,” said Mr George Ototo, Managing Director and Chief Executive officer, KUSCCO Ltd.
He spoke during the eighth Sacco Leaders Convention in Mombasa, recently attended by close to 1000 cooperative managers and leaders, legislators, policymakers and top national and county government officials.
The leaders requested the office of the Cabinet Secretary in charge of Cooperatives, Mr Simon Chelugui, who attended the event, to assist in expediting the recovery of the amounts to ensure the business continuity of Saccos. They argued inability of Saccos to adequately disburse loans due to non-remittance led to the loss of member confidence.
The theme of the three-day convention was ‘Saccos: Championing the Bottom–Up Economy for Growth and Sustainability.’ The convention aimed at providing insight into how Saccos will be positioned as vehicles to accelerate Socio-Economic Development in the country.
Saccos, over the years, have positively impacted members and their families since they provide a platform to save and borrow loans to pay school fees, build houses and homes, buy land, and much more. Saccos not only provide affordable credit to their members but are also growth drivers of MSMEs as they fund various forms of businesses.
The convention showcased success stories of the socio-economic development of Sacco members’ lifestyles through improved housing, education, incomes, skills development and employment. Leaders also discussed the industry roadmap that will enable greater benefits from digital technologies in future to enhance financial inclusion among Saccos. Leaders also identified sectoral recommendations and mitigation strategies to accelerate the cooperative movement’s growth and development.
