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Kuscco asks agencies to release Sh3bn to saccos as loan demand rises

Saccos umbrella organisation Kuscco wants public institutions compelled to release withheld deductions now standing at Sh3 billion to enable saccos survive the virus pandemic.

Kuscco managing director George Ototo said ministries, parastatals and private employers must release the funds to improve cash flow to enable saccos respond to demand by members.

“The government must move fast to penalise offending chief executives, vice chancellors and principal secretaries among state agency heads that deducted money from workers’ salaries but failed to remit the money.

“Now saccos are reeling from a raft of loan demands they cannot meet and this has forced many members to file quit notices so as to access their savings for meeting their daily expenses," he said.

Last February, Treasury secretary Ukur Yatani gave State agency and other public entities up to June 30 to clear all statutory dues and verified supplier bills, warning that a caveat on future expenditures will be placed on agencies that miss the deadline.

Mr Yatani said he will demand a payment plan from all offending entities, saying they were giving the government a bad name, adding statutory deductions should be a priority during budgeting. Mr Ototo said Kuscco is compiling a list of all offending public entities with a view to shaming chief executives and board chairmen.

At the same time the World Council of Credit Unions has called on the government to designate saccos as “essential” service providers during the Covid-19 crisis.

"Exclusion of saccos from the definition of 'essential' prohibits them from providing these necessary and often life-saving services. Credit unions should not be arbitrarily left to die off because they were omitted from a definition of 'bank' or 'financial Institution,'" said World Council Vice President of Advocacy Andrew Price.

Mr Price said empowering saccos will enable Kenya's 14 million savers enjoy affordable loans much needed to weather the Covid-19 crisis.

 

Source: https://www.businessdailyafrica.com/markets/marketnews/Kuscco-asks-agencies-to-release-Sh3bn-to-saccos/3815534-5526420-ppxxxrz/index.html?fbclid=IwAR0ud9QkRmQFs9ICOC3IOpEvLlSPWvoJEssRYjyW_Rt9NfULNxz6avJn48g

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