A Nairobi court has temporarily halted the Commissioner of Co-operative Development from appointing a new management committee at Ekeza Sacco Ltd., citing ongoing legal challenges over governance disputes.
Senior Resident Magistrate M. Murage ruled that the existing leadership must remain in place until the case concludes. The legal action was initiated by 11 Sacco members who allege the commissioner's intervention violates their rights to self-governance.
The court has scheduled a hearing for March 13 to address the dispute. Meanwhile, the Sacco's founder and chairman, Bishop David Kariuki Ngari 'Gakuyo,' faced scrutiny after selling assets in January 2019 to fund member savings refunds.
The properties included a Nyari Estate residential plot, a Juja hotel, a Makongeni house, 50 acres in Kilimabogo, 100 acres in Kabati, and a quarry. These sales followed the Sacco's 2018 license revocation due to regulatory non-compliance.
The co-op's financial troubles have persisted since its receivership, with leaders facing multiple legal and administrative challenges. A related 2019 report detailed Gakuyo's plea to unfreeze accounts amid the crisis.
