Sacco remittances halve to Sh900m
Monday December 14 2020
By LYNET IGADWAH
Summary
Delays in sacco remittances disrupts the financial base of the credit unions meaning that they may struggle to lend to members.
The amount of outstanding dues remitted to saccos halved to Sh900 million in the year to June compared to the similar period a year earlier, indicating the effect of liquidity challenges facing individuals and organisations in a tough economy.
Data from the National Treasury collated from the sector reports shows the amount has dropped from Sh1.8 billion the previous year.
Saccos usually rely on employer/institutions to directly make periodic deductions from members’ earnings and remit these directly to then.