Retired civil servants demand action over withheld sacco savings, urge Oparanya to intervene
The Retirees Benefits and Claims Welfare Association of Kenya accused the government of neglecting the concerns of thousands of retirees whose share deposits remain unpaid long after they left service.
Retired public servants across the country are calling for urgent intervention from the Ministry of Cooperatives and other relevant authorities, expressing frustration over ignored pleas and financial hardship caused by Sacco societies’ failure to release their retirement savings, some of which have been pending since the early 1990s.
In a letter dated July 9, 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 they left service.
“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,” REBECLWAK National Chairman and CEO, Benson Ambuni, said.
Ambuni noted that despite sending multiple letters, making physical visits and calling government offices, the Ministry had either failed to act or ignored their correspondence altogether.
“All indications show that either your office is not effectively briefed on our problems or your office is too busy, especially for issues of retirees,” reads the letter.
Disappointment
REBECLWAK, 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 had not borne fruit.
In their letter dated August 27, 2024, following a meeting with the CS on August 21, the Association had outlined some urgent concerns, including what it described as “immense mental torture” inflicted on retirees by Sacco societies holding on to their money.
The association cited multiple reasons behind the prolonged delays in releasing retirees’ savings, including unfulfilled promises by Sacco societies, the fragmentation of some into smaller entities, mismanagement of investments, weak regulatory oversight, and the absence of a structured framework for engagement between the government, Saccos, and retirees.
Additional challenges highlighted include delayed government intervention, the lack of bailout mechanisms for affected members, unchecked registration of new Sacco societies without proper oversight, and the failure to prioritise the refund of retirees' deposits.
Convene a multi-stakeholder meeting
To address these issues, REBECLWAK urged CS Oparanya to convene a multi-stakeholder meeting involving the Ministry, the Sacco Societies Regulatory Authority (SASRA), and the Association to develop a structured framework for resolving retiree concerns.
The association also requested the CS to pursue a bailout for 1,034 retirees whose savings—amounting to approximately Sh158 million—remain locked in Transcom Sacco Society Ltd. They further called on him to write directly to Lamu Teachers Sacco, Ukulima Sacco (Lamu branch), Tana Tea Sacco (Tana River), and Ulinzi Sacco Society (Nairobi), demanding status updates on pending refunds and setting clear timelines for payment.
In addition, REBECLWAK proposed critical amendments to the ongoing Sacco Societies Bill.
These include introducing mandatory timelines for processing retirees’ share deposit refunds, imposing penalties of at least 10 per cent for delayed payments, and classifying Sacco deposits by retirees as part of retirement benefits under the Retirement Benefits Authority (RBA) Act. They also called for greater stakeholder involvement in Sacco policy-making to strengthen oversight and protect members' interests.
In a separate letter dated April 16, 2025, addressed to the Director General of the Competition Authority of Kenya (CAK), the Association raised further concerns that some pension schemes and Saccos continue to deny or delay payments even to seriously ill retirees.
“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 observed that while many saccos promise flexible entry and exit during recruitment, they often make it extremely difficult for members to access their savings upon retirement.
They urged the Competition Authority of Kenya (CAK) to investigate these practices, particularly cases where Saccos or pension schemes have been presented with evidence that former members are seriously ill, yet still fail to act.
In a related effort, the association wrote to the CEO of Afya Sacco Society Limited on March 25, 2025, raising similar concerns.
They accused the sacco of ignoring previous correspondence and failing to refund deposits owed to retirees.
The letter cited specific cases in which withdrawal forms were either ignored or lost, and where the officers assigned to handle the claims were unresponsive to follow-up 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 said, 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 REBECLWAK leadership, and establish a structured feedback mechanism.
Comprehensive dossier
By March 2025, the association had compiled a comprehensive dossier detailing hundreds of unresolved cases involving Sacco societies accused of withholding retirees’ savings.
The records show that Transcom Sacco Society Limited in Nairobi alone owes retirement deposits to 1,034 former members, with the total outstanding amount standing at nearly Sh158 million.
In addition to the Transcom cases, the association identified at least 18 retirees who have yet to receive their dues from Ulinzi Sacco.
Similar complaints have also been lodged against several other 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 of Mombasa, who postponed overseas medical treatment due to the delay.
Others like Tumaini Charo in Tana River and Leonard Denje in Kilifi have been waiting since 2024 despite submitting withdrawal requests. John Mukoma from Busia faces a demanding court case with no access to his savings, while Jones Makori in Mombasa formally resigned in June and is still waiting for his payout.
The Association said it has forwarded the cases to the Ministry of Cooperatives, the Sacco Societies Regulatory Authority (SASRA), and other oversight bodies, urging urgent intervention to secure the trapped funds and prevent further suffering among the affected retirees.
“We reiterate our commitment to cordial working relationships,” the Association said, even as pressure mounts on government and Sacco institutions to respond to the retirees’ demands.
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