A scathing report circulating among members of Shoppers Sacco Society Limited , a once-promising savings and credit cooperative, now reveals it is teetering on the brink of collapse amid allegations of rampant fraud, mismanagement, and regulatory breaches.
The Sacco, regulated by the Sacco Societies Regulatory Authority (SASRA) , has been accused of gross financial misconduct by its leadership, leaving members’ savings at risk and raising questions about the oversight of Kenya’s cooperative sector. Shoppers Sacco members expose widespread financial irregularities, leadership corruption, and unpaid debts, urging regulators to intervene before the institution collapses.
The allegations, detailed in a document shared among members and seen by this publication, paint a dire picture of a Sacco plagued by internal corruption, unpaid debts, and operational failures.
Members claim that despite raising concerns at delegate meetings and calling for forensic audits, little has been done to address the rot, with key figures such as Chairman David Mwaura Thuku, Secretary/Treasurer Ronald M. Mose and CEO Njenga accused of orchestrating or enabling fraudulent activities. ATM Shutdown and Financial Distress One of the most glaring signs of distress came on November 14, 2024, when Co-operative Bank of Kenya switched off all Shoppers Sacco ATMs due to an unpaid debt of KSh 5.23 million.
The Sacco, unable to settle the amount, has resorted to manual processing of salaries and loans via a PayBill system — a move members warn exposes them to heightened fraud risks.
“This is unprecedented in Shoppers Sacco’s history,” the report states, noting that the lack of ATM services has severely disrupted access to funds.
The Sacco’s financial woes extend beyond the ATM crisis.
It reportedly owes Ksh 21 million in rent arrears, putting its office premises at risk of closure.
Despite a delegate resolution from the last Annual Delegate Meeting (ADM) to relocate to a more affordable office, the board allegedly spent KSh 2 million — without SASRA approval— on partitioning the existing space, a decision that echoes a similar KSh 5 million expenditure two years prior. Wakulima Loans: A Vehicle for Fraud? Another contentious issue is the Sacco’s “Wakulima Loans” scheme, where unsecured loans totalling KSh 10.55 million have gone unpaid.
Members allege that these loans, issued without guarantors or collateral, were disproportionately awarded to individuals connected to board members, including their families.
“This is a process being used by part of the board to steal from the Sacco in the name of Wakulima members,” the report says, pointing out the high risk of default and its contribution to the Sacco’s looming insolvency. Leadership Under Fire At the heart of the allegations are Chairman David Mwaura Thuku, Secretary/Treasurer Ronald M. Mose, and CEO Njenga, who are accused of shielding former board members implicated in fraud while benefiting personally from the Sacco’s coffers.
After a delegate meeting called for a forensic audit to uncover the extent of financial irregularities, Thuku, Mose, and the supervisory committee reportedly dismissed the proposal, citing awareness of their own loan defaults.
The trio is also accused of blocking efforts to recover defaulted loans by selling collateral, such as land titles, to avoid “embarrassing” former board members.
A notable case involves former board member Mr. Kimilu, whose title deed (Kakuzi/Kirimili Block 8/235) was returned by Njenga despite an outstanding loan balance of KSh 2.89 million.
Kimilu allegedly paid KSh 1.5 million in installments, after which Njenga issued the title deed, bypassing full repayment. Members further allege that Njenga, Thuku, Mose, and Supervisory Committee Chairperson Pamela Vosevwa Adagala sought an 8% cut (KSh 120,000) from the partial payment — a claim that has sparked outrage.
When Equity Bank inquired about the loan balance, Njenga allegedly misrepresented it as KSh 1.5 million, prompting demands for accountability from members. CEO’s Chequered Past Njenga’s appointment as CEO has also come under scrutiny.
Previously terminated in 2018 for underperformance and allegedly sharing members’ statements with outsiders, Njenga was reinstated by Thuku, reportedly due to a personal connection between Thuku and Njenga’s father, both former Nakumatt colleagues.
Since his return, Njenga is accused of reversing SASRA directives, including allowing board members to draw monthly salaries and petty cash — a practice banned by the regulator.
Members describe his office as a “crime scene” where fraudulent deals are orchestrated, including the release of Kimilu’s title deed. Supervisory Committee Accused of Complicity The supervisory committee, tasked with overseeing the Sacco’s financial integrity, has not escaped criticism. Members praise the committee for confirming fraud allegations at the last ADM but accuse it of incompetence and self-interest.
Chairperson Pamela Vosevwa Adagala, a former Nakumatt employee, reportedly holds a KSh 3 million staff loan with arrears of KSh 1.42 million, alongside an emergency loan and overdraft she allegedly does not qualify for under Sacco bylaws.
Similarly, committee member Wycliffe Mudoga Makalizo is accused of defaulting on a KSh 120,000 loan and underpaying contributions, while Benson Maina Kinyua allegedly owes KSh 804,366 and has yet to settle a KSh 49,500 debt for sacco equipment he took two years ago. Illegal Leadership and SASRA’s Role Adding to the chaos, the current board, elected as an interim committee following the last delegate meeting, was meant to serve only three months until August 2024.
However, no elections have been held, rendering their tenure illegal, according to members.
This leadership vacuum has coincided with a deterioration in services, with staff resignations mounting under Thuku’s allegedly indecisive and compromised leadership.
SASRA, tasked with regulating Saccos, issued Shoppers Sacco a conditional license, one condition being that board members repay their loans — a requirement allegedly flouted.
With unpaid salaries to third-party companies totaling KSh 6.89 million as of May 2024 (some linked to board members) and a looming threat to the Sacco’s license, members are calling for urgent intervention. A Sacco on its Knees As allegations pile up, members are urgently appealing for intervention to halt the downward spiral.
They are pressing SASRA to launch a thorough investigation into the reported mismanagement, arguing that the regulator has a duty to protect their interests.
They are also calling on the Cooperative Tribunal to step in, prepared to pursue legal recourse against the board if necessary.
Some members are questioning why the Directorate of Criminal Investigations (DCI) has not yet opened a probe into the fraud and potential theft allegations that have surfaced.
They are also urging the Ethics and Anti-Corruption Commission (EACC) to scrutinize claims of corruption and the misuse of funds by senior officials.
Beyond these agencies, members are appealing directly to Cooperatives Cabinet Secretary Wycliffe Oparanya, imploring him to take decisive action to address the crisis and safeguard the integrity of Kenya’s cooperative sector.
This publication will continue to monitor the situation, reporting on any responses from SASRA, the DCI, the EACC, CS Oparanya, or developments within the Sacco as events unfold.
For the moment, Shoppers Sacco members find themselves in a state of uncertainty, unsure whether their savings will ever be recovered.
Confidence in an institution once regarded as reliable has been eroded by allegations of greed, clandestine dealings, and disloyalty from those entrusted with its stewardship.
Without prompt action from regulatory bodies or law enforcement, many fear the Sacco’s collapse is imminent, along with the loss of their hard-earned funds. View document