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SACCOs Owed KSh 2.7 Billion in Non-Remitted Funds- SASRA Report

SACCOs Owed KSh 2.7 Billion in Non-Remitted Funds- SASRA Report

SACCOs (Savings and Credit Co-operative Societies) were owed close to KSh 2.7 billion in non-remitted funds by various employer institutions.

According to the latest report by the Sacco Societies Regulatory Authority(SASRA), the unremitted funds were owed to 80- Regulated SACCOs amounted to KSh 2.70 Billion in 2022 compared to KSh 3.40 Billion in 2021.

The SASRA Annual Supervision Report 2022 notes that the perennial failure by various employer institutions to remit SACCO deductions continues to undermine the financial performance of these financial societies, despite various policy and administrative measures being put in place to address the problem.

Last year, the non-remitted funds belonged to a total of 66,452 members, either as loan repayment deductions or non-withdrawable (BOSA) savings deductions as at September 2022.

The bulk of the non-remitted deductions to financial societies amounting KSh 2.02 Billion which is equivalent of 74.78% of the total non-remitted funds related to loan repayment deductions, implying that loan portfolios of proportional amounts stood defaulted, besides undermining the liquidity position of the affected Regulated SACCOs to meet their financial obligations.

The failure by various employer-institutions to promptly remit the BOSA savings’ deductions on the other hand have the effect of reducing the borrowing capabilities of individual members of the regulated societies SACCOs, since most of the borrowing are pegged on the BOSA savings, which acts as collateral.

https://kenyanwallstreet.com/saccos-hit-by-non-remittances-in-2022-decline/

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