Ekeza Sacco, Which Has 5,000 Members in the Diaspora to Remain Shut, Says Govt

The government says Ekeza Sacco will remain shut until it is convinced that there is a proper management structure in place.

Speaking to Business Daily, acting Principal Secretary for Co-operatives Chris Kiptoo said liquidators are still auditing its books while supervising the separation of the Sacco from its sister company, Gakuyo Real Estate. 

“We want to ensure its governance structures are proper and member funds are well accounted for. This will ensure all monies collected from members are well-protected. No investments will be done haphazardly as this adversely affects liquidity in the sacco,” Kiptoo said.

Ekeza, which is associated with Calvary Chosen Centre Bishop David Ngari Gakuyo, was shut down in March this year by Commissioner for Co-operatives Mary Mungai.

“Following numerous complaints by members who were not able to access loans and refunds of their deposits, I decided to carry out an impromptu inspection of the society.”

“As a result of the inspection, it was found Ekeza Sacco and Gakuyo Real Estate did not have different branded offices, management structure and bookkeeping, including a members register as also evidenced by a management letter from the external auditor,”  Ms Mungai said in March.

“The society was deregistered for failing to adhere to requirements set out by the Cooperatives Act.”

The Commissioner also picked two liquidators to run its operations pending investigations into its funds management.

Ms Mungai’s decision to close the Sacco came after numerous complaints that it had reneged on an earlier promise to help members purchase plots of land and build houses.

She said payments had been disbursed for members with a saving of Sh50,000 and below with plans in place to refund cash to super-savers. 

The liquidators, assistant Director of Co-operative Audit Stephen Kamau and Principal Co-operative Officer Philip Ukhevi are expected to hand a report on the probe to Ms Mungai.

“I gave them an extra three months to complete work while the sacco’s management should complete the required changes,” she said.

Ekeza Sacco has a membership of 85,000  with 5,000 of them being Kenyans in the diaspora. It has 26 branches across the country and Sh2.56 billion in deposits.