Employers warned against delaying Sacco dues

By Grace Wekesa

The Government has warned that employers who default remitting their employees deductions to their respective co-operative societies within the stipulated period risk facing hefty fines.

“For committing such an offence, the employer shall be liable to pay the sum deducted together with compound interest at the rate of not less than five per cent per month,” the Western Provincial Cooperative Officer Nathan Mukhweso said.

Mr Mukhweso also reiterated that the law gives powers to the Commissioner of Co-operative Development to direct any bank to transfer to the respective Sacco funds that have been deducted from employees’ salaries and not remitted.

“The Government reserves the right to order for transfer of any money if it is proven that the employer deducted from the employees’ salaries and failed to remit the same to their respective Saccos within the prescribed seven days after the date upon which the deductions were made,” said Mukhweso.

Meeting

He was speaking at the eighth Annual General Meeting at Masinde Muliro University of Science and Technology Wevarsity Sacco Society Limited in Kakamega.

More than 800 members had earlier on complained that despite the institution deducting their contributions every month, it took several months before the money could be transferred to the Sacco.

“Under the Co-operative Societies Act (Amended) 2004,  management board of directors of Saccos were required to fill prescribed forms obtainable from their local district cooperative officers to enable the Government to effect the transfer of the funds including a penalty,” he explained.

Derrick Okwako, chairman Wevarsity Sacco, said the 2011 Fosa turnover had declined as a result of delays in remitting members’ monthly deductions.