Your Employer Deducted SACCO Money but Did Not Remit It

A payslip can show that money left your salary while the SACCO statement shows no payment. SASRA reported KES 3.49 billion in non-remitted funds owed to regulated SACCOs at the end of 2024, affecting 85 institutions and 55,602 members.

Why the problem is serious

About 74.5% of the non-remitted funds were meant to repay loans and credit facilities. The member may appear to be in arrears even though the employer already deducted the money. The SACCO also misses cash it expected for lending and withdrawals.

How members are affected

Missing remittances can trigger penalty interest, delayed loan qualification, guarantor recovery and CRB disputes. Savings balances also fail to grow, which can reduce the member’s loan multiplier and annual return.

Check every month

Compare the payslip deduction with the SACCO statement. Do not wait for the AGM. Keep payslips, bank statements, employer correspondence and SACCO statements. A clear paper trail is essential if the account is disputed.

Raise the issue in writing

Notify payroll and the SACCO immediately. Ask the employer for the remittance schedule and payment reference. Ask the SACCO to confirm what it has received and how it will treat the disputed arrears while the issue is investigated.

Escalate with evidence

Use the employer’s grievance process and the SACCO’s complaints channel. If the matter affects regulated SACCO business and remains unresolved, submit a documented complaint to the relevant authority. For CRB issues, obtain the credit report and dispute the inaccurate information through the prescribed process.

The SACCO also needs a plan

Management should disclose material non-remittances, pursue recovery and avoid treating innocent members as if they deliberately defaulted. The board should explain concentration risk where one employer owes a large amount.

Bottom line

A payroll deduction is not complete until the money reaches the SACCO and appears correctly on the member’s account.

Editorial note: Keep payslips and monthly SACCO statements, and use written complaint channels when remittances are missing.