A group of retired public servants from various parts of the country is calling on the Ministry of Cooperatives and relevant authorities to urgently intervene over delayed Sacco payments. The retirees say their repeated pleas have been ignored, leaving many of them in financial distress as they wait for retirement savings — some dating as far back as the early 1990s — to be released.
In a letter dated 9 July 2025, addressed to Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya, the Retirees Benefits and Claims Welfare Association of Kenya (REBECLWAK) accused the government of neglecting the concerns of thousands of retirees whose share deposits remain unpaid long after their retirement.
“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,” stated the Association’s National Chairman and CEO, Benson Ambuni.
Ambuni pointed out that, despite sending multiple letters, making physical visits, and calling government offices, the Ministry has either failed to act or has ignored their correspondence altogether.
“All indications show that either your office is not effectively briefed of our problems or your office is too busy, especially for issues of retirees,” the letter states.
The Association, registered under the Societies Act to represent public sector retirees, expressed deep disappointment that follow-up efforts since their last meeting with the CS in August 2024 have not led to any progress.
In their letter dated 27 August 2024, following a meeting with the CS on 21 August, the Association outlined various urgent concerns, including what they described as “immense mental torture” inflicted on retirees by Sacco societies holding onto their funds.
They cited several reasons for the delays, including unfulfilled promises by Sacco societies, the disintegration of some into smaller entities, mismanagement of investments, a lack of frameworks for engagement between the government, Sacco, and retirees, and weak regulation.
Other challenges include delayed government intervention, the absence of bailout mechanisms for affected members, the rampant registration of new Sacco societies without oversight, and the lack of prioritisation for retirees’ refunds.
They urged Oparanya to convene a multi-stakeholder meeting that would include REBECLWAK, SASRA, and Ministry officials to develop a structured engagement framework.
The Association further requested the CS to seek a bailout for 1,034 retirees whose savings, totalling approximately Sh158 million, remain locked in Transcom Sacco Society Ltd. They also asked the CS to write directly to Lamu Teachers Sacco, Ukulima Sacco (Lamu branch), Tana Tea Sacco (Tana River), and Ulinzi Sacco Society (Nairobi) to demand updates on pending refunds and to issue strict timelines for disbursement.
Additionally, they called for critical amendments to the ongoing Sacco Societies Bill to introduce timeframes for processing share deposit refunds upon retirement, impose a penalty of at least 10 per cent on Sacco societies that delay payments, and classify all Sacco deposits made by retirees as part of retirement benefits under the Retirement Benefits Authority (RBA) Act.
They also demanded stakeholder participation in the formulation of Sacco policies to ensure the monitoring of financial health and the protection of member interests.
In a separate letter dated 16 April 2025, addressed to the Director General of the Competition Authority of Kenya (CAK), REBECLWAK further expressed concern that some pension schemes and operating Sacco societies continue to deny or delay payments owed to retirees, including those who are seriously ill.
“We have come face to face with several public sector retirees (some sickling) who have retired and have been denied their savings/deposits which could have anchored their peaceful retirement,” the Association lamented.
It added: “Some retired a very long time ago but were denied their pension contributions. The waiting continues while sick retirees live in despair and others risk losing their property acquired before retirement, and which they hoped to service with such savings.”
The group noted that many Saccos promise flexible entry and exit during recruitment, yet upon retirement make it nearly impossible for members to access their own funds.
They asked CAK to intervene and investigate these practices, especially in cases where evidence has been provided to the Sacco or pension scheme indicating that a former member is unwell, which does not seem to elicit any action from them.
On 25 March 2025, the Association also wrote to the CEO of Afya Sacco Society Limited, raising similar concerns. They accused the Sacco of ignoring their previous correspondence and failing to refund deposits owed to retirees. The letter detailed instances where retirees’ withdrawal forms were either ignored or lost, and officers assigned to the cases did not respond to calls.
“It is also sadly understood that you continue to deduct share contributions even from those members who have retired and signified intentions to leave the Sacco Society,” the Association stated, noting that members in some counties were turned away at FOSA branches despite having unutilised savings.
The letter urged Afya Sacco to personally review the enclosed cases, convene a meeting with the leadership of REBECLWAK, and establish a structured feedback mechanism.
By March 2025, the Association had compiled a comprehensive dossier detailing hundreds of unresolved cases involving Sacco societies accused of withholding retirees’ savings.
Records indicate that Transcom Sacco Society Limited in Nairobi alone owes retirement deposits to 1,034 former members, with the total outstanding amount approaching Sh158 million.
In addition to the Transcom cases, the Association has identified at least 18 retirees who have yet to receive their dues from Ulinzi Sacco. Similar complaints have been lodged against various Sacco societies across the country, including Lamu Teachers Sacco, South Nyanza Sugar Company Sacco (Sonyaco), Migori Teachers Sacco, Metropolitan Sacco, Tana Teachers Sacco, Afya Sacco, and Ufundi Sacco.
Cases include that of Mary Atieno Ndalo in Mombasa, who never received her withdrawal form; Susan Muthoni Maina in Nairobi, who is on the verge of losing her property; and Franciscah Bahati from Mombasa, who has postponed overseas medical treatment due to the delay.
Others, such as Tumaini Charo in Tana River and Leonard Denje in Kilifi, have been waiting since 2024 despite submitting withdrawal requests. John Mukoma from Busia is facing a challenging court case without access to his savings, while Jones Makori in Mombasa formally resigned in June and is still awaiting his payout.
The Association has forwarded these cases to the Ministry of Cooperatives, the Sacco Societies Regulatory Authority (SASRA), and other oversight bodies, urging for urgent intervention to secure the trapped funds and prevent further suffering among the affected retirees.
“We reiterate our commitment to maintaining cordial working relationships,” the Association stated, even as pressure mounts on the government and Sacco institutions to respond to the retirees’ demands.
