SACCOs that have been experiencing severe cashflow problems due to employers withholding cash deducted from their members, can now breathe with ease. This is after Treasury announced that all Ministry, Departments  and Agencies as well as County payrolls will be centralised in IFMIS,  with the system expected to send KRA, Pension and SACCO deductions directly to SACCOs before the money hits counties/MDA accounts.

Treasury CS John Mbadi told Senate,” We will start deducting all these statutory payments at source, and rejected  a petition by county governments for a one year delay.

During the year ended 31st December 2025, the total non-remitted funds owed to SACCOs by employers increased to KSh 3.92 billion from KSh 3.49 billion in 2024.

SASRA said in its latest 2025 Annual Supervision Report that it remains concerned by the persistent challenge of unremitted member deductions by employers.

The concept of deductions and remittances has historically and largely supported employee-based coop societies and producer-based coop societies by promoting a disciplined savings culture through direct deductions while facilitating efficient loan repayment as well.

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 coop societies ultimately undermining their financial stability.

The number of  coop societies affected by the non-remittances also increased from 85 to 89 SACCOs.

SACCOs and Worst Non-Remittances Offenders

County Government and Assemblies accounted for the largest proportion of unremitted funds at 48.09%, followed by Public Universities and Tertiary colleges and State Corporations accounting for 18.52% and 12.26% respectively.

SASRA has been pleading with employers to fulfil their statutory obligations by remitting deducted funds promptly in order to safeguard members’ savings and preserve confidence in the entire SACCO industry.

County Governments and other Government Agencies owed the bulk of non-remitted funds to SACCOs.

The year also witnessed an important market innovation milestone with the launch of the SACCO Remittances Toolkit in collaboration with the International Fund for Agricultural Development (IFAD).

The toolkit provides a practical framework for SACCOs to participate more actively in the growing remittances market space, thereby expanding financial inclusion, diversifying their revenue streams and enhancing competitiveness of the SACCO industry.

SASRA in collaboration with IFAD launched the SACCO Remittances Toolkit from the foregoing, the Authority remains confident in the resilience and long-term prospects of Kenya’s SACCO industry.

The industry’s sustained growth, increasing membership, ongoing policy reforms and expanding opportunities for innovation provide a strong foundation for its sustainable development.

Further, Kenya’s SACCO industry witnessed encouraging progress in the adoption of amalgamations/Acquisitions/Mergers as a strategic supervisory intervention.

During the year 2025, two SACCOs successfully amalgamated through acquisition through voluntary resolution by members of Nufaika SACCO Society Ltd to join Fortune SACCO Society.

This demonstrated the growing acceptance of voluntary Amalgamations/Acquisitions/Mergers as a practical tool within the Regulated SACCO industry for supporting struggling SACCOs while ensuring continuity of services to members.

SASRA said it considers this an important milestone in promoting financial stability and protecting members’ interests without resorting to the dissolutions where viable alternatives exist.