The Kenya’s largest sacco in terms of membership portfolio and savings Mwalimu National Sacco holds its
annual general meeting today,amid the recent government communication to effect 20% deductions up from 10% from sacco savings,categorized as 10% on dividend tax and 10% withholding tax.
According to Co-operatives Alliance Kenya chief executive Daniel Marube yesterday said it will be painful for Sacco members who are already shouldering taxes from other quotas.“Although it is going to be a big shock to members who have already
planned for their dividends, there is no much we can do. The law is already operational, we can only abide to it says Mr.Marube The new tax measure proposed by Sacco regulator before being incorporated in to Income Tax draft Bill, 2018 by National Treasury in June last year is now operational despite Sacco unions’ opposition.
With advent of devolution Mwalinu national has wisely embarked on revitalizing branches countrywide engaging members,as opposed to the norm when top leadership always engaged members annually in Nairobi during AGMs.
To cushion members saving the large saccos like Mwalimu National ,Afya Sacco and Harambee Sacco should partner with county governments in becoming partners in investments in eras such as provision of housing to members and general public at a fee.
According to the statistics from the Saccos Regulatory Authority,SASRA. The government-based and teachers-based DT-Saccos continue to control over 70 per cent of both the assets and deposits in the DT-saccos segment, but with a combined membership of just about 34 per cent of the total membership in the DT-sacco segment.
“This largely demonstrates the relative growth and success of the government-based and teachers-based DT-sacco when compared with the other clusters. This success is largely attributable to the direct check-off deductions from salaries methodology, both for non-withdraw able (BOSA) deposits as well as the recovery of loans and other credit facilities.