Regulator debunks notion youths are not in Saccos
Tuesday, January 14th, 2020
- Turnover Tax was first introduced in the Kenyan taxation framework in 2007 with a view to enhancing tax compliance in the informal sector.
- The re-introduced tax mechanism is effective from January 1, 2019, therefore the first TOT filing and payment is due on or before February 20.
- Kenyans were recently up in arms after the taxman put up a notice in the daily papers asking businessmen to take the action as a ‘’patriotic duty’’ as it puts to life the tax measures in the Finance Act 2019.
- The new taxes are the latest cost of doing business in Kenya. Currently, small businesses have to pay daily fees to county government or secure an annual licence to operate.
A report by the Sacco Societies Regulatory Authority (Sasra) has debunked notion that youths are shunning Saccos as investment and saving options.
The report shows that the youth comprise a third of the country’s 4.97 million Sacco members, dispelling the view that Saccos are dominated by older members and has no place for the youth.
The Sacco sub-sector Demographics Study Report, 2019 further shows that 7.4 per cent of Sacco members are between 18 and 24 years while 23.46 per cent is aged between 25 and 35 years.
“The youth, that is, the population of members constitutionally defined to be within the age-brackets of 18 years to 35 years accounted for 30.86 per cent of the total natural person members, which is nearly a third of all members…and thus demystifies the public rhetoric that Sacco membership has no place for the youth,” the report adds.
Most Sacco members (28.88 per cent) are aged between 36 and 50 years while those aged 51 to 64 years comprise 17.63 per cent, according to the report.
“This is consistent with the fact that Saccos being member-based socio-economic enterprises majorly draws membership from that segment of the population engaged in some form of active or productive socio-economic activities, the majority of whom are aged between 18 and 50 years,” it reads in part.