Savings and Credit Cooperative Organisation (SACCO) members in Kenya could soon benefit from tax relief if new proposals submitted to the National Treasury are approved.
In submissions made on Thursday, March 19, the Kenya Union of Savings and Credit Co-operatives urged the Treasury to scrap excise duty on member-based SACCO transactions. The union argued that such taxes place an unnecessary burden on ordinary members, many of whom rely on SACCOs for affordable credit and savings services.
KUSCCO emphasized that removing the excise duty would lower the cost of financial transactions within SACCOs, ultimately increasing members’ savings and access to loans. The proposal is also aimed at strengthening the cooperative movement, which plays a significant role in financial inclusion across the country.
If approved, the move could boost the attractiveness of #SACCOs compared to commercial banks, especially for low- and middle-income earners. It may also encourage more Kenyans to join SACCOs, further expanding grassroots economic participation.
The National Treasury is expected to review the proposals as part of ongoing fiscal policy considerations, with stakeholders keenly watching for potential reforms that could ease the financial burden on millions of SACCO members nationwide.