This archive report was first published on 22 July 2019.
Sumac Micro Finance, a banking institution with its head offices at Consolidated Bank, Koinange Street, is facing allegations of inside trading, money laundering, and favoritism. According to a dossier, the institution's founder, John Kibatha, is linked to these illicit activities.
Published on July 22, 2019, the Weekly Citizen reported that Kibatha allegedly allocated loans to relatives, business associates, and foreigners, raising concerns about the institution's integrity.
The institution's management has been accused of operating secret bank accounts, with CEO John Njihia and other senior staff members implicated. The dossier also reveals that the institution's operations are shrouded in mystery, with the majority of staff employed at the headquarter and branches being Kikuyu.
Only a few non-Kikuyu staff members, including Solomon Nyamu, Susan Kibocha, and Clara Nekesa Wanjala, are reportedly employed in key positions. The institution's board of directors is also dominated by Kikuyus, with Njoroge as the chairman and other Kikuyu directors serving on the board.
Depositors have reportedly complained about being treated as second-class citizens if their accounts are not attractive, and the institution is struggling to survive. The Nakuru branch is at risk of being closed due to a lack of customers, and the Ngara branch is set to be merged with the Koinange branch.
