The Kenyan government has initiated an investigation into Kukena Sacco Society after members raised concerns about financial management practices. The probe was authorized by Commissioner for Co-operative Development Mary Mungai through a gazette notice dated February 4, 2019.
A two-member team comprising principal co-operative officer auditor Anthony Waithaka and Embu County officer Charles Mugwika will examine the society's financial records, governance structures, and bylaws. The inquiry must be completed within 30 days of the notice's issuance.
Mungai confirmed that Kukena members, primarily public transport stakeholders in Kirinyaga County, approved the investigation during their 2018 annual general meeting. The commissioner cited Section 58(1) of the Co-operative Societies Act to justify the inquiry, stating members had formally petitioned for an investigation.
This move follows high-profile fraud cases in the co-operative sector, including the collapse of Stima Investment Sacco in February 2019. A forensic audit revealed mismanagement of funds at the 13,565-member Stima Sacco Society, resulting in over 500 million shillings in member losses. Earlier in 2019, authorities blocked televangelist David Kariuki Ngare from selling assets of his real estate company to protect savings from Ekeza Sacco, which owes 78,000 members approximately 2.5 billion shillings.
