Corporate

Teachers clash with sacco officials over low dividends

A showdown is looming at a sacco in Kisumu after members threatened to withdraw over claims of funds mismanagement. The members of Kisumu Teachers Sacco have contested a divided pay of 1.3 per cent and say they will decamp from the 5000-member revolving fund.

‘‘Imagine getting 1.3 per cent of your shares yet you have saved a total of Sh236,300 in one year. I only got Sh2,600 as dividends,’’ said Mark Onyango, a member.

He said the board has been holding secret meetings without involving members, raising so many questions. The teachers are accusing the board of directors of mismanagement whom they have issued a notice to vacate their positions for fresh elections.

‘‘We have observed that normal loans are not being issued out; instead members of the sacco are subjected to Fosa loans, which are very expensive,’’ Erick Omulo said.

The board is also accused of favouritism. This year’s financial statement indicate the rate of default stands at Sh39 million.

However, the chief executive of the sacco Joseph Oganga dismissed the claims, claiming those threatening to withdraw from the membership are loan defaulters who are busy mobilising others to leave the sacco.