KMA SACCO
Finance Operations &
Staff Financial Wellness Briefing
Processes • Controls • Loans • Payroll • Tax Savings • Medifinance
Presented to Staff | Finance Department | August 2026
What We'll Cover
Two perspectives on Finance — how the department operates, and what it means for you
01
Finance Department Overview
Mandate, responsibilities and how we support other teams
02
Vendor Payments
From request to posting — the process and required documents
03
Loans & Member Transactions
Loan processing, dividends and fixed deposit liquidation
04
Payroll Deductions
What comes off your payslip, and how deductions are managed
05
Tax Savings & Internal Controls
PAYE reliefs you can claim, and the safeguards we apply
06
Medifinance
Insurance agency, land commissions & MMF savings add-ons
KMA Sacco | Finance Operations & Staff Briefing
2
1
Overview of the Finance Department
Mandate, responsibilities and our internal service role
The Finance Department safeguards the Sacco's financial resources and ensures compliance with regulatory and internal policies.
Core Mandate
● Safeguard Sacco financial resources
● Ensure regulatory and policy compliance
● Maintain accurate books and records
Key Responsibilities
● Financial reporting and budgeting
● Treasury, payroll and vendor payments
● Member transactions and compliance
Support to Departments
● Financial information and advisory
● Payment processing and monitoring
● Budget guidance and performance data
KMA Sacco | Finance Operations & Staff Briefing
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2
Vendor Payment Procedure
From request initiation to posting and filing
1
Initiate
User department raises payment request with supporting documents
2
Verify
Goods received notes, invoices, contracts and approvals confirmed
3
Check
Budget availability and policy compliance validated
4
Approve
Payment voucher prepared and routed through approval workflow
5
Pay
Payment processed through bank or approved channel
6
Post & File
Entry posted in the accounting system; documents filed
KMA Sacco | Finance Operations & Staff Briefing
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2
Vendor Payments — Documents Required
What Finance checks before any supplier invoice is paid
1
Approved Local Purchase / Service Order (LPO / LSO)
2
Vendor invoice matching the PO on items, quantity & price
3
Delivery note / Goods Received Note signed by the user department
4
Valid KRA PIN certificate and Tax Compliance Certificate
5
Signed contract or service agreement, where applicable
6
Confirmed vendor bank details (cancelled cheque / bank letter)
7
Budget line confirmation and expenditure approval per policy
8
eTIMS-compliant invoice to support VAT input claim
9
Withholding tax assessed and applied where applicable
Payment is released only once every required document is on file and approved.
KMA Sacco | Finance Operations & Staff Briefing
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3
Loan Processing
What Finance checks before a loan is disbursed
✓
Shares & savings status
Member's share capital and savings balance confirmed and up to date
✓
Existing loan balances
Outstanding balances and repayment history reviewed on the ledger
✓
Guarantor verification
Guarantors identified, their capacity and existing commitments checked
✓
Standing order confirmed
Check-off / standing order instruction in place with employer or bank
✓
Loan-to-savings ratio
Requested amount falls within the Sacco's approved lending multiple
✓
Approval obtained
Credit committee or board sign-off secured where policy requires it
✓
Repayment capacity
Net pay after all deductions can comfortably absorb the installment
✓
Complete loan file & terms
Application, ID, agreement on file; interest rate and security verified
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4
Dividends and Interest Payments
Key checks before processing member payouts
✓
Validate member account balances and qualifying shares or deposits
✓
Review member status and account information
✓
Check tax deductions and regulatory requirements where applicable
✓
Reconcile total payment schedules before processing
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5
Fixed Deposit Liquidation
Procedure from member request to audit filing
1
Request
Receive member request and verify identity
2
Maturity
Confirm maturity date and applicable terms and conditions
3
Calculate
Compute accrued interest and any applicable penalties
4
Approve
Obtain the required internal approvals
5
Process
Effect payment and update member records
6
File
Retain all supporting documentation for audit purposes
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6
Payroll Deductions
What comes off your payslip each month, and why
STATUTORY DEDUCTIONS
PAYE
Pay As You Earn income tax, per KRA bands
NSSF
National Social Security Fund — Tier I & II
SHIF
Social Health Insurance Fund — 2.75% of gross pay
Housing Levy
Affordable Housing Levy — 1.5% of gross pay
SACCO-SPECIFIC DEDUCTIONS
Monthly Savings / Shares
Standing contribution that builds your member equity
Loan Repayment
Installment per your standing order / check-off schedule
Welfare / Development Fund
Contribution supporting member welfare initiatives
Your gross pay less statutory deductions, Sacco savings and loan repayment gives your net take-home pay.
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6
Managing Payroll Deductions
How Finance handles employer schedules and member accounts
1
Review payroll schedules received from employers
2
Match deductions to member loan and savings accounts
3
Investigate variances, omissions or under-remittances
4
Post deductions accurately and reconcile control accounts
5
Generate reports for management and member servicing teams
Statutory deductions are remitted within regulatory deadlines; Sacco deductions are posted to member accounts and reconciled monthly.
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7
PAYE Tax-Saving Opportunities
Reliefs and deductions you can legitimately claim to lower your PAYE
Mortgage Interest
Up to KES 30,000/month
(KES 360,000/year)
Interest paid on a home loan for your owner-occupied residence is deductible before tax — now also covers construction costs. Submit your lender's annual interest certificate to Payroll.
Insurance Relief
15% of premiums
(capped at KES 5,000/month)
Life, health and education insurance premiums qualify for a 15% relief directly off your tax payable. Share your policy premium certificate for it to be applied.
Pension Contributions
Up to KES 30,000/month
(KES 360,000/year)
Contributions to a registered retirement benefits scheme reduce your taxable income while building your retirement savings.
Personal Relief
KES 2,400/month
(KES 28,800/year)
Automatically applied to every employee's tax payable — no action needed, but good to know it's part of your payslip math.
Action: forward your mortgage interest and insurance premium certificates to Finance/Payroll each year so these reliefs are reflected correctly on your PAYE.
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8
Key Internal Controls
Safeguards applied across all finance processes
Segregation of duties
Approval hierarchies
Bank reconciliations
System access controls
Document retention and audit trails
Periodic management and compliance review
Controls are applied consistently to vendor payments, loans, dividends, fixed deposits and payroll deductions.
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9
How Finance Supports Other Departments
A shared service across the Sacco
Budget guidance
Budget guidance and ongoing expenditure monitoring
Payments
Prompt processing of duly approved payments
Procurement
Financial review and payment processing support
Decision support
Financial data for decision-making and performance reporting
Risk & audit
Assistance with risk management, compliance and audit activities
Member service
Accurate transaction processing behind member service delivery
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10
Introducing Medifinance
KMA Sacco's insurance agency — extra income and savings add-ons for staff
1
Beyond your basic pay
Medifinance gives staff ways to build additional income and savings alongside their salary and Sacco benefits.
2
Two ways to participate
Earn commission on land sales, or diversify your savings into Money Market Fund products — covered next.
3
Open to all staff
Every employee can take part; speak to the Medifinance desk to get started on either opportunity.
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MEDIFINANCE | OLERAI LAND
Sell Land at Olerai,
Earn a Commission
3%
COMMISSION ON
SALE PRICE
● Medifinance holds land parcels for sale at Olerai.
● Any staff member who facilitates a sale earns a 3% commission on the final sale price.
● A straightforward way to earn beyond your salary — refer a buyer or close a sale yourself.
● Speak to the Medifinance desk for available parcels, pricing and how commissions are processed.
KMA Sacco | Finance Operations & Staff Briefing
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Diversify Your Savings
Medifinance Money Market Fund (MMF) products for staff
•
Beyond Sacco Shares
Keep growing your shares and savings with KMA Sacco while placing additional funds into an MMF for extra diversification.
•
Competitive Returns
MMFs typically offer attractive, market-linked returns with high liquidity compared to a standard savings account.
•
Flexible Access
Funds in an MMF are generally easy to top up or withdraw, giving you a flexible complement to your long-term Sacco savings.
Interested in diversifying? Visit the Medifinance desk to compare products and start an MMF savings plan alongside your Sacco account.
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In Closing
Thank You
The Finance Department plays a critical role in protecting member funds, ensuring compliance, and enabling efficient service delivery across KMA Sacco.
Questions on loans, vendor payments, payroll, tax reliefs or Medifinance? Reach out to the Finance team or the Medifinance desk any time.
KMA Regulated Non-WDT Sacco Society Limited | Finance Department