Commissioner for Cooperative Development Geoffrey Njangombe says the government is piling pressure on institutions that had defaulted to remit members’ contribution on time and policies are being drafted to penalize institutions that delay remitting contributions.
Saccos in the country are owed 4.3 billion shillings in unremitted contributions with the biggest defaulters being public universities and institutions in the national and county governments.
This comes as the Sacco Societies Regulatory Authority – SASRA and the management of cooperatives are calling on legislators to enact a law that will see top managers of defaulting organizations take personal responsibility for non-remittance.
So far, Saccos have recovered 380 million shillings in delayed non-remitted deductions.
Of this amount, the University of Nairobi remitted 275.9 million shillings owed to Chuna SACCO, while Egerton University and Kisii University remitted 306 million shillings and 5.3 million shillings in outstanding remittance respectively to Egerton SACCO.
Speaking during the annual delegates meeting for Kenya Union of Savings and Credit Cooperatives, KUSCCO officials urged Saccos to safeguard their members’ personal data in line with the Data Protection Act, 2019.
He says the COVID-19 pandemic saw most Saccos cutting some of their operations to fund their loan books.
In 2020, the KUSSCO combined loan book grew to 10.49 billion shillings up from 8.67 billion the previous year while assets increased 19.1 percent to 19.81 billion shillings.
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