NAIROBI, Kenya, Sep 29 – Employers in Kenya failed to remit Sh3.92 billion deducted from workers’ salaries for SACCO savings and loan repayments in 2025, affecting 104,331 members of regulated Savings and Credit Cooperative Societies (Saccos), the SACCO Societies Regulatory Authority (SASRA) has said.

The amount of unremitted funds increased from Sh3.49 billion in 2024 to Sh3.92 billion in 2025, while the number of affected members nearly doubled from 55,602 to 104,331.

County governments and assemblies accounted for the largest share of the unremitted funds at Sh1.884 billion, affecting 52,746 Sacco members in 2025, compared with 32,573 the previous year. The amount owed increased from Sh1.607 billion in 2024.

Public universities and tertiary colleges recorded the second-highest amount of unremitted funds at Sh725.91 million, affecting 6,928 members.

State corporations followed with Sh480.55 million owed to Saccos, affecting 7,668 members, while private sector companies had Sh345.27 million in unremitted deductions involving 4,836 members.

National government ministries accounted for Sh157.99 million in unremitted funds, affecting 19,667 members.

The report also shows a sharp increase in non-remittances involving constitutional organisations, with the amount rising from Sh6.76 million in 2024 to Sh204.74 million in 2025. The number of affected members increased from 512 to 9,389.

Other categories included cooperative entities, with Sh46.99 million outstanding; other entities, Sh25.41 million; private sector schools, Sh10.25 million; public schools’ employees under Boards of Management, Sh8.77 million; and churches and church-based institutions, Sh7.57 million.

The number of regulated Saccos affected by employer non-remittances increased from 85 in 2024 to 89 in 2025.

SASRA said the problem occurs when employers deduct members’ contributions directly from their salaries but fail to forward the money to the beneficiary Saccos.

Such delays can affect the societies’ liquidity and their ability to manage loans, while also affecting members whose deductions are not reflected in their Sacco accounts as expected.

“However, instances where employers deduct members’ contributions from salaries but fail to remit the funds to respective beneficiary SACCOs continue to adversely affect the liquidity and loan performance of the affected SACCOs ultimately undermining their financial stability,” SASRA states in its 2025 supervision report.

The regulator has urged employers to fulfil their remittance obligations by forwarding deducted funds promptly, saying this is necessary to safeguard members’ savings and maintain confidence in the SACCO sector.

The non-remittance figures come as the wider regulated SACCO sector continues to grow. Total deposits held by regulated Saccos increased by 11.12 percent to Sh832.74 billion in 2025 from Sh749.43 billion in 2024.

Total assets rose by 12.5 percent to Sh1.21 trillion, while loans to members increased by 12.25 percent to Sh949 billion.

Regulated Sacco membership also increased by 480,000 to 7.87 million in 2025, up from 7.39 million in 2024.