Saccos' remittance down by over Sh2b in the last two years

Cooperatives CS Simon Chelugui, PS Patrick Kilemi (second left), KUSCO Ag. MD Anold Munene Njeru (right) and other officials at the 9th Annual Sacco Leaders Convention in Mombasa on Thursday 22nd February 2024. [Kelvin Karani, Standard]

Remittances by employers to Saccos have dipped by 50 per cent from Sh5 billion to Sh2.4 billion since 2022.

Cabinet Secretary for Cooperatives and Micro Small Medium and Enterprises Development Simon Chelugui said delayed or non–remittance of Sacco dues by county governments, universities, and other government agencies stands at over Sh3.5 billion.

The CS, however, noted that the past year has been one of the strongest in the movement’s history, as member deposits topped over Sh1 trillion for the first time.

He also noted that the total assets held by cooperatives grew to Sh1.5 trillion.

Chelugui was addressing over 1400 Sacco members in Mombasa during the annual Sacco leaders' convention organised by the Kenya Union of Savings and Credit Cooperatives (KUSCCO).

“Two years ago, remittances stood at Sh5 billion. Today, we have reduced by half to Sh2.4 billion. We have been writing letters and engaging Saccos and employers to remit the funds. Those who are not cooperative, the Commissioner of cooperative can issue urgency notice and have their bank accounts closed," warned Chelugui.

He said the ministry was in talks with various institutions to resolve the issue of non-remittance. The CS said the Sacco union recently faced challenges, including panic withdrawals and difficulties in meeting its obligations prompting the Ministry to institute an inspection which revealed several areas of concern.

KUSCCO acting managing director Arnold Munene said between 2019 and 2022, female memberships in Sacco grew from 40 percent to 50 percent, bringing into sharper focus the need to ensure inclusion and representation for all.

“As a sector, we acknowledge that more needs to be done as far as achieving parity at the senior level is concerned. Across our sub-sector, only 24 percent of Board members are women, an imbalance we would like to address in the shortest time possible,” said Munene.

He said that the Union would be working closely with the government to amend regulations that would promote Saccos welfare.

KUSCCO national chairman David Langat urged leaders and Sacco members to continue upholding the collaborative spirit for the mutual benefit of the sector.

“Let us pull together and support the Union and its new leadership…With your collective goodwill and enhanced collaboration with the policymakers who stand strong with us today, the Cooperative Movement will continue cementing its place as one of the foundational pillars of this country’s economy,” the Chairman concluded.

Mwalimu Sacco director Mr Daniel Marube warned Kenyans against investing their monies in Saccos that are unregulated to avoid losing their money. [Joackim Bwana]