New tax regime impacting on the management of Saccos

Siaya,

Sunday, October 8, 2023

KNA by Philip Onyango

The new tax regime is impacting on the management of savings and credit cooperative societies that are now forced to adjust with the increased operational costs, the national chairman of the Hazina Savings and Credit Cooperative Society, Evans Kibagendi has said.

According to Kibagendi, the new taxation has introduced a raft of corporate taxes that organisations have to pay and added that given the other taxes that individual members remit as citizens, it has generally affected the income of the organisations.

He was speaking in Siaya town on Saturday when he led members of his board to open a new branch office. The officials also attended the branch Education Day where they enlightened members about new products.

“Our income bracket has gone down because of taxation and what the members are undergoing,” he said adding that even management expenses have been affected.

Kibagendi said that people were avoiding loans, something that has significantly impacted operations of the saccos.

“Members are unable to meet their desires because of high taxation,” he said, adding “however, we have not reached a point where we can say we are in a crisis.”

The chairman however said that the Sacco was adjusting to everything and was doing all it can to ensure that her members are well catered for.

Hazina Sacco chief executive officer, Dickson Okungu said the Sacco was open for membership from both national and county government employees as well as those in the private sector.

Okungu said that the Sacco was encouraging retirees who are on pension to continue with their membership.

Courtesy; KNA