This archive report was first published on 18 August 2021.
August 18, 2021, marked a significant development in the Sacco Societies Regulatory Authority (Sasra) CEO recruitment exercise, which has since been marred by allegations of bribery and corruption.
Acting CEO Paul Njuguna has been accused of using his position to favor cartels and enrich himself, with disgruntled staff members within the agency testifying that his unorthodox methods only benefit the cartels.
Njuguna's rise to power began when he took over from John Mwaka, who was brought in as part of the dream team of former CS for Industry, Trade and Co-operatives Adan Mohammed. Mwaka was known for his war against corruption within the agency, and his tenure was marked by a ruthless crackdown on corrupt officials.
However, when Mwaka's contract was not renewed, Njuguna, who was then Chief Manager Sacco supervision at SASRA, was appointed in his place. Despite his lack of integrity, Njuguna was seen as a suitable candidate due to his profile and immense power within the agency.
Now, with the absence of CS Adan, Njuguna is reportedly working closely with the board and cartels, and staff members are bracing themselves for the worst. Njuguna has been accused of bragging about his ability to pocket board members, including the chairman, by offering them weekly per diem and sitting allowances.
Staff members have also alleged that Njuguna uses his connections to wire money to CS Peter Munya, and that he has fashioned himself as a well-connected man. The party was reportedly partially funded by Njuguna's uncle, who has business interests in the mining industry.
As Njuguna goes about his business, it is evident that he has tried to raise money to satisfy the board chairman. Recently, staff were ordered to do a report to sack the mwalimu Sacco board and CEO who refused to donate him money in kickback.
Staff members who were delegated to carry out the witch-hunt have spoken out about their struggles, saying that they had to impress the boss or risk being fired, demoted, or transferred to less lucrative departments.
'We are hoping that someone would hear our cries, but apparently it looks like we have no one to run to,' one of the staff lamented.
The CEO's uncle reportedly gives him money, and where it's not enough, he sends staff to harass Saccos so that he can solicit funds from them as a way of securing their survival.
The CEO has also been accused of struggling to accommodate his demands, and recently, he blatantly refused to pay a supplier who could not bribe him. Staff members have noted that they have an incompetent board which is highly compromised and a CS who is conflicted.
SASRA board needs an overhaul to bring sanity to the agency, and Njuguna's source of the insanity should be investigated since the agency controls the economy of this country in a bigger portion and corruption isn't healthy for the Saccos and their clients who will be feeling the pinch of the authority's ruthless sanctions.
