This archive report was first published on 12 September 2019.
Published on September 12, 2019, a report by Weekly Citizen exposed a financial scandal at Kumisa Savings and Credit Co-operative Society, where officials have defaulted on loans worth over Sh50 million.
The chairman, John Njoroge, took a loan of Sh800,000 but has failed to repay it. According to an insider, Njoroge and other Sacco officials owe the institution over Sh50 million, leaving it unable to give loans to its members.
The Sacco's secretary, John Gakure, has also defaulted on a loan of Sh1.2 million. Members have raised concerns about Gakure's inability to account for Sh7.5 million withdrawn in 2016 to purchase land in Mai Mahiu.
Members are accusing the chairman of the supervisory committee, Martin Kinyanjui, of protecting the officials and blaming members for not servicing their loans. Kinyanjui's report claimed that only 200 out of over 2,000 members who received loans are repaying.
Further allegations include unaccounted for funds, including Sh1.5 million collected in mobile transfers and Sh300,000 collected in cash that was used as petty cash. Additionally, a Sh365,000 loan to purchase pigs for Farmers Choice remains unaccounted for.
The Sacco is also struggling to pay rent, with accumulated arrears of Sh233,000. To make matters worse, the Sacco is unable to repay a bank loan of Sh200,000 per month, managing only Sh100,000.
Employees have accused Njoroge of manipulating documents to favor himself and his cronies, leading to the current financial crisis. Workers have not been paid for the last three months, and the Sacco's future appears bleak with members unable to get loans or refunds.
