In a bid to save thousands of Kenyans from losing billions of money invested in Ekeza Sacco, the government has taken over the Cooperative Society.
The government said the Sacco will be liquidated and the cash returned to the investors. Commissioner for Co-operative Development Mary Mungai said it will take about one year to complete the process.
Liquidation involves converting a firm’s assets into cash by selling them to pay a debt. Ms Mungai announced the cancellation of the Sacco’s operating licence two weeks ago and ordered its liquidation.
Assistant Director for Co-operatives Stephen Kamau and Principal Co-operative Officer Philip Ukhevi have been picked to supervise the liquidation process.
“I authorise them to take into their custody all the properties of the said society, including such books and documents as are deemed necessary for completion of the liquidation,” Mungai said through a gazette notice dated March 26th.
The Sacco had a membership of more than 50,000 and had issued Sh2.6 billion in loans.
However, Ekeza Chief Executive Officer Gladys Muriithi has contested its de-listing in court, arguing that the cancellation of its license is a breach of justice.
In her affidavit, she says that the move would put in jeopardy more than 50,000 sacco members and would also complicate the recovery of Sh2.6 billion members had been granted as loans.
“The respondent did not inform the sacco of the intention or reasons for the cancellation nor give it a chance to answer or remedy the alleged breaches,” Muriithi said in her affidavit.
In a notice to revoke its license, Ms Mungai said the co-operative society no longer served its purpose.
“Inspection was ordered by this office under Section 60 and found that Ekeza Sacco Society had failed to meet its objectives,” read the notice number MR/4187405.
“I order cancellation of the registration of the said society under Section 61(1). Any member of Ekeza Sacco Society aggrieved by this order may, within sixty (60) days from the date this order is published in the Kenya Gazette, appeal to the Cabinet Secretary responsible for Co-operative Development.”
The sacco’s troubles are connected to a Sh3 billion housing project in Kamulu in Nairobi, which involved 7,000 members.
Prospective home buyers were asked to deposit at least Sh10,000 as booking fees to be part of the housing scheme. They would then begin saving with the sacco continuously under the scheme dubbed Gakuyo Zero Deposit (G zero D) programme.
Ekeza is associated with Bishop David Gakuyo Ngari, who is the chairman of the sacco and Gakuyo Real Estate Company.
Gakuyo was part of United for Kiambu group which run for the county’s governorship seat with Ferdinand Waitutu as Governor candidate and James Nyoro as his running mate.
Now are they going to stop…
Now are they going to stop advertising on Kameme?
Warned people about buying…
Warned people about buying those so-good-sounding deals with Gakuyo real estate and Optiven. Also warned them that Kenyans are so crafty that they will do anything to get your money. These conmen knows that once they get your money, the process of obtaining title is long and lengthy. They sell land that they don’t own. Collects your money until they have enough to purchase the land. That’s why they don’t want you to use a lawyer in the process, because they know they don’t have a title in their name for the land they are selling to you. Always use a lawyer, or buy property through reputable banks like KCB, Equity, standard, CBA, Barclays etc. Bank will ask and verify all documents submitted. These hyper characters in the name of Gakuyo and optiven are a sham. Beware.