Retired public servants across Kenya are calling for urgent government intervention over the delayed payment of their Sacco savings, some of which have been pending since the early 1990s.
Through the Retirees Benefits and Claims Welfare Association of Kenya (REBECLWAK), the former workers have raised concerns about Sacco societies holding onto their funds for decades, leaving many in financial distress.
In a letter dated July 9, 2025, and addressed to Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya, the Association expressed frustration over what it termed a lack of response despite numerous attempts to seek assistance.
The retirees said the prolonged delays had left many of them facing severe financial hardship.
“It disturbs us as an Association that issues affecting retirees are relegated to the periphery when all they are asking for are their hard-earned savings,” said Benson Ambuni, the Association’s National Chairman and CEO.
REBECLWAK said it has written several letters, visited government offices, and made calls to the Ministry, but efforts have yet to yield results. They cited a meeting with CS Oparanya in August 2024 as one that has so far not led to progress.
In their latest letter, the Association described the situation as causing “immense mental strain” on retirees who are still waiting for their dues.
They attributed the delays to factors such as poor management within some Sacco societies, the collapse of others, gaps in regulation, and the absence of a clear framework to protect retirees’ interests.
The group is proposing a multi-stakeholder meeting involving the Ministry, the Sacco Societies Regulatory Authority (SASRA), and other relevant institutions to develop a structured system for addressing such disputes.
In addition, they urged the government to consider a bailout for 1,034 retirees whose savings, totalling nearly Sh158 million, remain locked in Transcom Sacco Society Ltd.
They also want the Cabinet Secretary to issue firm directives to several Sacco societies, among them Lamu Teachers Sacco, Ukulima Sacco (Lamu branch), Tana Tea Sacco, and Ulinzi Sacco Society, requiring updates on unpaid dues and setting strict timelines for disbursement.
REBECLWAK is advocating for amendments to the Sacco Societies Bill to ensure retirees’ share deposit refunds are processed within a defined period.
They propose penalties for delays, a 10 per cent interest on overdue amounts, and classification of all Sacco deposits by retirees as retirement benefits under the Retirement Benefits Authority (RBA) Act.
In a separate letter to the Competition Authority of Kenya dated April 16, 2025, the Association voiced concerns over the continued delays in settling dues, even for elderly and ailing retirees.
“Some retired a very long time ago but are still waiting for their pension contributions. The waiting continues while sick retirees live in despair,” the Association stated.
The group further said that Afya Sacco Society Limited had not responded to several letters and complaints.
It cited cases where retirees’ withdrawal forms were reportedly misplaced or not acted upon, and instances where contributions continued to be deducted from retirees despite their exit from service.
By March 2025, REBECLWAK had compiled a report highlighting unresolved cases involving several Sacco societies, including Ulinzi, South Nyanza Sugar Company (Sonyaco), Migori Teachers, Metropolitan, Tana Teachers, Afya, and Ufundi Saccos.
The report detailed cases of retirees who never received their withdrawal forms, others facing the risk of property loss, and some who postponed critical medical treatment due to lack of funds.
REBECLWAK has appealed to government agencies to act urgently to recover the funds and ensure that the affected retirees are treated with dignity.
