Members of a popular sacco in kenya are at risk of losing their savings after the wife of the CEO and her sister vanished with millions of shillings from the sacco.
According to reports, the members of the said sacco were informed that two individuals related to the CEO owed the Sacco over Ksh63 million, a statement that shocked those who received the communication.
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Reports indicate that the wife to the CEO owes the sacco Ksh43.1 million while the sister-in-law owes Ksh20.02 million. Upon inquiry whether they are able to repay the ammount, they were informed that there is no sign of recovery.
The Kenya Union of Savings & Credit Cooperatives (KUSCCO) is said to have its headquarters in Nairobi and with over eight branches countrywide, it also has a total member of over 75,000 with whom have their savings in the sacco.
On how the two accessed such amounts of money, the wife is said to be a former employee in the sacco headquarters while the sister to the wife is still working in the sacco at the time of discovery.
The Trade, Industrialisation, and Tourism Senate Committee resolved to invite members from the Sacco Societies Regulatory Authority (SASRA) to answer on how the fraus happened and what are the next steps.
Committee 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.
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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.