Counties, universities, parastatals and other employers failed to remit billions of shillings deducted from workers’ salaries for Sacco payments in 2025, leaving more than 104,000 Sacco members affected.
The Sacco Societies Regulatory Authority (SASRA), in its 2025 Sacco Supervision Annual Report, said regulated Saccos were owed Ksh3.92 billion in non-remitted funds by employer institutions.
The amount increased from Ksh3.49 billion recorded in 2024, according to the report.
SASRA Reveals Ksh3.92 Billion in Workers’ Sacco Funds Unremitted as Counties Top List
County governments and assemblies accounted for the largest share of the outstanding funds, owing regulated Saccos Sh1.88 billion in 2025.
The amount represented 48.09 per cent of all non-remitted funds during the year.
The figure also increased from Ksh1.61 billion owed by county governments and assemblies in 2024.
SASRA said the county-related arrears affected 52,746 Sacco members, with Ksh1.67 billion relating to loan repayments and Ksh218.53 million relating to other deductions.
The regulator raised concern over the continued failure by county governments and assemblies to forward deductions to beneficiary Saccos.
It noted that cooperative functions are constitutionally devolved to counties. It said county governments and assemblies should therefore be at the forefront of promoting cooperatives through timely remittance of workers’ deductions.
The report pointed out that the deductions are made directly from employees’ salaries.
SASRA said that when county employees receive their salaries, the amounts deducted for Sacco obligations should similarly be forwarded to the respective Saccos.
Universities Among Major Defaulters
Public universities and tertiary colleges were the second-largest category of employers with unremitted Sacco funds.
The institutions owed regulated Saccos Ksh725.91 million in 2025, equivalent to 18.52 per cent of the total outstanding funds.
SASRA revealed that the amount comprised Ksh277.06 million in unremitted loan repayments and Sh448.85 million in other Sacco deductions.
The number of affected Sacco members in this category stood at 6,928.
State corporations and parastatals were also among the major employers with outstanding deductions.
According to SASRA, the institutions owed Saccos Ksh480.55 million in 2025, representing 12.26 per cent of all non-remitted funds.
The amount included Ksh438.92 million in loan repayments and Ksh41.63 million in other deductions.
A total of 7,668 Sacco members were affected in the state corporations category.
Also Read: Regulator Issues Fresh Guidance on Auditors for SACCOs Countrywide
National Government and Constitutional Bodies
National Government ministries owed regulated Saccos Ksh157.99 million in 2025, up from Ksh129.72 million in 2024.
The amount affected 19,667 Sacco members.
Constitutional bodies recorded a sharp increase in unremitted funds, with the amount rising from Ksh6.76 million in 2024 to Ksh204.74 million in 2025.
The number of affected members also increased from 512 to 9,389.
Private sector companies owedKsh345.27 million, while public sector companies, including water companies, owed Ksh20.90 million.
Other categories included cooperative entities, which owed Ksh46.99 million, and other employers, which owed Ksh25.41 million.
Also Read: Kenyans Borrow Nearly Ksh1 Trillion From SACCOs, Here’s What They Used the Money For
Proportion of Non-Remitted Funds Owed to the Regulated SACCO Industry by Category of Employer-Institutions
|
Category of Employer-Institutions
|
2025
|
2024
|
Change (2025–2024)
|
|---|---|---|---|
|
County Governments & Assemblies
|
48.09%
|
46.07%
|
+2.02 pp
|
|
Public Universities and Tertiary Colleges
|
18.52%
|
21.85%
|
-3.33 pp
|
|
Private Sector Companies
|
8.81%
|
12.44%
|
-3.63 pp
|
|
State Corporations
|
12.26%
|
4.72%
|
+7.54 pp
|
|
Public Sector Companies including Water Companies
|
0.53%
|
7.62%
|
-7.09 pp
|
|
National Government Ministries
|
4.03%
|
3.72%
|
+0.31 pp
|
|
Constitutional Organs (Bodies)
|
5.22%
|
0.19%
|
+5.03 pp
|
|
Churches & Church-Based Institutions
|
0.19%
|
0.53%
|
-0.34 pp
|
|
Public Schools’ Employees (BOM)
|
0.22%
|
0.46%
|
-0.24 pp
|
|
Private Universities
|
0.00%
|
0.17%
|
-0.17 pp
|
|
Other Entities
|
0.65%
|
0.74%
|
-0.09 pp
|
|
Cooperative Entities
|
1.20%
|
1.07%
|
+0.13 pp
|
|
Private Sector Schools’ Employees
|
0.26%
|
0.42%
|
-0.16 pp
|
Total Sacco Funds Owed
Across all employer categories, regulated Saccos were owed Ksh3.92 billion in 2025.
Directly Transacting (DT) Saccos accounted for Ksh3.38 billion of the amount, while Non-Withdrawable Deposit-Taking (NWDT) Saccos were owed Ksh542.53 million.
The total number of Sacco members affected stood at 104,331, up from 55,602 in 2024.
Loan repayments accounted for the largest portion of the outstanding funds at Sh3.04 billion, while other deductions amounted toKsh879.72 million.
SASRA said the persistent failure by employers to remit deducted funds has implications for the financial performance of regulated Saccos, particularly those whose membership is concentrated among employees of defaulting institutions.
The regulator said it would continue pushing for policy reforms to prevent county governments and other government agencies from applying deductions to purposes other than those for which the money is collected.
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