New tax regime impacting on the management of saccos

 

The new tax regime is impacting on the management of the 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 taxation under the new regime has introduced a raft of corporate taxes that the organisations have to meet and given the other taxes that individual members have to pay as citizens, it has generally affected the income of the organisations.

He was speaking in Siaya town 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 on the 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 was having an impact on the 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 its members are well taken care of.

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 from the private sector.

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

BY KBC NEWS