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Why saccos now want to bypass employers in Sh3.4 billion non-remittance crisis

In most organisations, employees form Saccos with the help of the employer as a savings platform. [Courtesy]

Saccos are seeking ways to bypass employers in the remittance of members' deductions, with the latest industry report by the regulator showing they are now owed a whopping Sh3.4 billion.

By acquiring licences to offer front office services (Fosa), large Saccos believe it will give them the capacity to deduct members' contributions and loan repayments directly.

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