The Sacco Societies Regulatory Authority (SASRA) has issued a warning to employers who have been deducting their employee’s salaries and remitting them to unregistered saccos.
In a notice to the public, the Authority noted that there was an increasing trend where employers were dealing with unlicensed saccos despite being provided with clear guidelines against them.
Notably, the trend has also been witnessed in some public institutions.
The authority cautioned that it would not be held responsible should the salary deductions disappear in the Saccos.
SASRA Chief Executive Officer Peter Njuguna speaking at a stakeholders meeting during the Sacco Subsector Annual Regulatory Policy Roundtable in September 2023.
In some instances, Kenyans have lost their hard-earned savings to Sacco officials who disappeared with millions without a trace.
On the other hand, Kenyans were also warned against making contributions to Saccos that had not been authorised to operate in the country.
According to the notice, the authority had noticed a trend where Kenyans were making contributions to the illegal Saccos through digital platforms.
“These incidences have often resulted in and/or occasioned the loss of funds by members of the public without any recourse, whenever such unauthorized institutions fail to meet their financial obligations.
“SASRA cautions public and private sector companies, institutions, and entities to cease and desist from facilitating unauthorized entities to undertake illegal Regulated SACCO businesses through deductions and remittances, and/or providing electronic and digital channels and conduits to undertake such illegal Regulated SACCO businesses,” read the notice in part.
Additionally, Kenyans were asked to carry out due diligence before making contributions to a Sacco.
The authority added that Kenyans could verify whether a Sacco had been licensed through their website: sasra.go.ke.
Kenyans who have had suspicions of their contributions were also asked to reach out to the authorities through their email address: [email protected] should they want to very whether their Sacco is registered.
File image of Kenyans using smartphones