The Rising Non-Remittance Crisis in SACCOs

The non-remittance crisis in SACCOs is shaking Kenya’s financial system. Over Ksh 3.49 billion in unpaid deductions have created uncertainty among members. This silent time bomb is more than a SACCO issue—it directly affects members’ survival and trust in the cooperative movement.

What Is Non-Remittance in SACCOs?

Non-remittance happens when employers deduct contributions from employees’ salaries but fail to forward them to SACCOs. County governments, parastatals, and public universities are among the major offenders.

For members, the consequences are devastating:

  • Loan repayments not recorded.

  • Risk of being listed as defaulters.

  • Liquidity shortages in SACCOs, delaying dividends.

Why the Non-Remittance Crisis Is a Major Threat

According to SASRA, this crisis could destabilize Kenya’s SACCO sector if ignored. Imagine saving diligently for years, only to realize your contributions never reached your account.

The ripple effects include:

  • Decline in loan approvals.

  • Higher credit risks.

  • Deep frustration among members.

For practical insights on risk management, check out our guide on Regulatory Compliance for SACCOs (SASRA and Local Frameworks) Training;https://saccochampions.co.ke/regulatory-compliance-for-saccos/

The Way Forward: Proposed Solutions by SASRA

SASRA recommends that the National Treasury directly deduct non-remitted funds from exchequer allocations of defaulting institutions. This measure could save SACCOs from crippling cash-flow problems while restoring confidence among members.

What SACCO Members Should Do

Every member must take personal responsibility to protect their savings. Here are key steps:

  • Regularly check your SACCO statements.

  • Raise concerns if deductions don’t reflect.

  • Advocate for transparency and accountability.

Your money should never get trapped in employer bottlenecks.

Final Word: A Wake-Up Call for Kenya’s SACCOs

The non-remittance crisis in SACCOs is a wake-up call for the entire cooperative movement. Strong governance, clear policies, and timely interventions are essential. Kenya’s SACCOs remain a pillar of financial empowerment, but urgent action is needed to safeguard members’ trust.

For more insights on SACCO governance, training, and consultancy, visit;https://saccochampions.co.ke/

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