The national government will intervene to help the Saccos recover their unpaid Kshs. debts buy the county governments.
The huge unpaid remittances has affected operations of the co-operative societies – Trade CS said national government will intervene to help the Saccos recover their dues
The unpaid remittances have accumulated to over Kshs. 1 billion and have reportedly affected operations of most of the Saccos which are now pleading with the national government to help them collect the dues.
Reports in the media indicate that the County governments have not been remitting employees contributions since 2013 despite deducting the money from employees.
During the 96th Ushirika Day celebrations on July 7 at Uhuru Park, Nairobi, it was also revealed that the huge arrears had left most of the Saccos unable to meet their financial obligations.
Among the co-operative societies most affected by the delayed remittances include Stima, Mwalimu, Harambee, Afya and Ukulima Saccos.
The Country has 22,000 registered Saccos with membership of over 14 million. It has emerged that county governments have not been remitting employee contributions to the Savings and Credit Co-operatives (Saccos) for the past six years.
“We are aware that a number of counties have not been remitting deductions to the Saccos. We will help the cooperatives recover the debts so that they can improve their liquidity,”former Industrialisation, trade and cooperatives cabinet secretary (CS) Aden Mohamed.
However, the county governments argue that the delayed employee deduction remittances was due to low liquidity.
Sacco Times understands the Cooperative Societies Act Cap 490 empowers the Saccos to seek legal redress against employers who fail to remit members’ deductions. As of July 2018, Kenya had a total of 22,000 registered Saccos with a staggering membership of 14 million Kenyans.