Retired public servants across Kenya are calling on the government to urgently address long-standing delays in the disbursement of their Sacco savings, some of which have remained unpaid since the early 1990s.
Through the Retirees Benefits and Claims Welfare Association of Kenya (REBECLWAK), the retirees are appealing to Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya to intervene, citing financial distress and prolonged inaction from relevant authorities.
In a letter dated July 9, 2025, REBECLWAK expressed deep frustration over the lack of progress, despite previous engagements, including a meeting with CS Oparanya in August 2024. The Association’s National Chairman and CEO, Benson Ambuni, noted that many retirees are experiencing “immense mental strain” due to the delays.
“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,” Ambuni said.
The retirees attribute the delay to poor Sacco management, regulatory gaps, and a lack of protective frameworks. Some Sacco societies have collapsed, while others, including Transcom, Lamu Teachers, Ukulima (Lamu branch), Tana Tea, and Ulinzi, are cited for withholding payments without updates or clear timelines.
REBECLWAK has proposed a multi-stakeholder forum involving the Ministry, the Sacco Societies Regulatory Authority (SASRA), and other institutions to develop a structured mechanism for resolving such disputes. They also recommend a government bailout for 1,034 retirees whose Sh158 million is locked in Transcom Sacco.
Among the key proposals are amendments to the Sacco Societies Bill to mandate a fixed timeline for refunding retirees’ deposits, penalties for delays, a 10% interest on overdue funds, and classification of retirees’ Sacco savings as retirement benefits under the RBA Act.
A separate letter to the Competition Authority of Kenya, dated April 16, 2025, highlights the dire consequences retirees face, including medical delays and loss of property. The group cited unresolved complaints involving several Saccos such as Afya, Sonyaco, Ufundi, and Migori Teachers.
REBECLWAK continues to push for government action to ensure retirees are treated with dignity and justice.
