Members from the Trade, Industrialisation, and Tourism Senate Committee have resolved to involve the Sacco Societies Regulatory Authority (SASRA) as Sacco members stare at losses.
On Tuesday, May 21, the members were informed that two individuals related to the CEO owed the Sacco over Ksh63 million. The Sacco, which has its headquarters at the heart of Nairobi City, has over 75,000 members and eight branches countrywide.
The CEO's wife owes the sacco Ksh43.1 million while the sister-in-law owes Ksh20.02 million and there are no prospects of the two repaying the amount. The wife was a former employee of the Sacco while the sister-in-law still works there.
Senators resolved to invite officials from SASRA to seek justice for the members and ensure their money is refunded.
"What efforts are you making as the CEO to recover these monies from your relatives?" Bungoma Senator David Wakoli questioned.
On the other hand, the chairperson and Kajiado Senator Lenku Seki asked the authority to conduct a full audit of the controversial Sacco's business practices and books to shed light on the irregularities reported by some members.
While responding to questions posed by the senators, the Sacco chairperson blamed former directors and the Board of Management. She accused the former officials of irregularly paying dividends to members despite the Sacco lacking funds, leading to multi-billion losses.
The chairperson also dismissed the senators' suggestion to refund shares to former members, arguing that it would cause the Sacco to crumble even further.
"We can't refund former members until we recover these monies, either by having the former directors, staff, and top management return the money or by defaulters repaying their loans," the chairperson added.
Notably, the Sacco has previously faced similar allegations of irregularities, leading to members losing millions, with compensation still pending.
In 2023, the Sacco, which began operations in 1977 as a Teacher's Sacco, was accused of losing Ksh300 million belonging to teachers from Bungoma County. Members have complained about the Sacco not paying dividends as MPs continue with the probe.
