Public Money DeskReceipt
Deducted, not delivered: KES 3.92bn of SACCO money and KES 66.41bn of pension contributions taken from pay but not passed on
Our verdict · Opinion
In our view, money taken from a worker's pay should reach its destination as surely as PAYE reaches KRA: the new at-source payroll is the right fix for new deductions in counties, but the billions already owed still sit with employers, and we found no dated plan to repay them.
Employers took KES 3.92bn from workers' pay for SACCOs in 2025 and did not pass it on, SASRA says; county governments and assemblies owed KES 1.88bn of it. The Retirement Benefits Authority counted KES 66.41bn of unremitted pension contributions at the end of 2025, 93% of it owed by public-sector schemes. The Controller of Budget puts counties' salary arrears and unremitted deductions at about KES 100.2bn in June 2026. A payroll system that remits deductions at source started on 1 July 2026 in counties; it does not clear the old debts.