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What is Check-Off?

Check-off is the arrangement by which an employer deducts a member's SACCO contributions and loan repayments from salary and remits them directly to the SACCO. It is the standard collection mechanism for employer-based SACCOs in Kenya and is usually why repayment rates in that model are high.

A real Kenyan example

A member's monthly deposit and loan repayment leave the payroll before the salary reaches their account, so the decision to pay is made once at the start rather than every month.

Why it matters

Check-off does most of the work in the SACCO savings model, because money that never reaches your account is money you do not decide about each month. It is also the arrangement that ends when you change employer, which is why the consequences of leaving are worth establishing before you join.

FAQs

What happens to check-off if I change jobs?
The deduction stops, and both deposits and loan repayments have to be made another way. How the SACCO handles that, and what it means for an outstanding loan, varies between SACCOs and should be established before joining rather than after.
Is there a limit on total check-off deductions?
Many employers and SACCOs apply a cap on the share of net pay that can go to deductions. The limit is set by the employer and the SACCO rather than by a single national figure, so ask what applies to you.
Can I pay my SACCO directly instead?
Most SACCOs accept direct payment, commonly by mobile money, and many members outside employer-based SACCOs pay this way as standard. The trade-off is that the discipline check-off provides has to come from you.

Related terms

Common BondSACCO Member DepositsSACCO (Savings and Credit Co-operative)

See all 72 terms