- This denied thousands of Sacco members a chance to benefit from credit facilities and dividends paid annually.
- the DT-Saccos were owed the highest amount of the non-remitted funds amounting to Sh2.16 billion in 2023.
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Employers did not submit Sh2.59 billion to Saccos even after deducting the amount from their workers' salaries in 2023.
This denied thousands of Sacco members a chance to benefit from credit facilities and dividends paid annually.
An annual supervision report by the Sacco Societies Regulatory Authority (Sasra) released on Wednesday shows county government, universities, private companies and state agencies led institutions that did not submit deductions for 57,721 workers during the period.
According to the report, public universities and tertiary colleges owed regulated Saccos the highest proportion of non-remitted deductions amounting to Sh958.07 million, representing 37 per cent of the total non-remitted deductions.
This was an increase in the amount of non-remitted deductions that was owed by public universities and tertiary colleges to Saccos in 2022 that amounted to Sh620.52 million. The performance and growth of the 10-Universities based Regulated
Saccos draw a bulk of membership from the public universities and tertiary colleges thus continue to be undermined as evidenced by a high NPL ratio compared with other government-based clusters of Saccos.
The County governments comprising the county executive and the county assemblies had the second highest proportion of non-remitted funds owed to Saccos and which amounted to Sh865.12 million and representing 33.41 per cent of the total non-remitted funds.
This was however a drop from the sum of Sh1.35 billion which the County governments owed Saccos in 2022, but still significant enough to have negative financial impairment of the liquidity of the 10 Saccos which draws a majority of their membership from county governments and assemblies.
The private sector companies on the other hand owed a total of Sh377.4 million in non-remitted deductions representing 14.6 per cent of the total non-remitted deductions in 2023, which is a drop from Sh428.95 million which they owed in 2022.
The state corporations which owed a total sum of Sh143.09 million in 2022 equally continued to default in the remittance of the deductions owed resulting in an increase to a sum of Sh162.9 million representing 6.29 per cent of the unremitted funds owed to Saccos in 2023, further undermining the performance Saccos drawing membership from the state corporations.
The largest portion of the total non-remitted funds in 2023 was on account of deducted funds meant for the repayment loans and credit facilities which the Saccos had issued to their members and amounted to Sh1.68 billion representing 64.88 per cent of the total unremitted funds.
This was an improvement from the Sh2.01 billion owed to Saccos on account of loan and credit facilities repayment in 2022 and which represented 74.72 per cent of the total unremitted funds owed to Saccos in 2022.
The non-remitted funds owed to Saccos on account of Back Office Services Activities (Bosa) deposits however increased to Sh909.5 million in 2023 representing 35.1 per cent of the total unremitted funds, compared to Sh680.16 million representing 25.28 per cent in 2022.
"The overall implication of the increased Bosa non-remitted funds is a reduction in the ability of the affected members of Saccos to access loans and credit facilities,'' the report says.
"Their respective Saccos due to liquidity constraints as well as lack or want of adequate collateral."
At the segmental levels, the DT-Saccos were owed the highest amount of the non-remitted funds amounting to Sh2.16 billion in 2023, representing 83.5 per cent of the total unremitted funds which is a drop from the sum of Sh2.36 billion in 2022.
This was made up of Sh1.34 billion being non-remitted funds owed towards the repayment of loans and other credit facilities advanced to the members, and Sh817.61 million owed towards the Bosa deposits of the individual members.
Non-Deposit Taking entities on the other hand were owed a total sum of Sh0.43 billion in 2023 representing 16.53 per cent of the total unremitted funds.
This was an increase from Sh0.34 billion, representing 12.51 per cent, which was owed to the NWDT-Saccos in 2022.
The bulk of the non remitted funds owed to the NWDT-SACCOs in 2023, amounting to Sh0.34 billion was on account of loan repayment deductions, meaning that loans and credit facilities of similar amount issued by NWDT-SACCOs were defaulted.