UN Sacco among three societies listed for investigations

The Co-operatives Commissioner has ordered an inquiry into the operations of three financial institutions that operate under the Co-operative Societies Act.

The Commissioner in notices contained in the Kenya Gazette dated November 2 ordered an inquiry into the operations of United Nations Sacco, Kenya’s sixth largest deposit taking Sacco in terms of assets, Muna Sacco Society and Mutungati Farmers’ Cooperative Society.

The Sacco Societies Regulatory Authority (Sasra), the sector regulator and Kenya Union of Savings and Credit Co-operatives (Kussco) on Friday told the Business Daily that the inquiry into the United Nations Sacco could be related to past fraud that saw a number of employees fired from the organisation.

“There was a fraud some time back and after investigations departmental heads were removed. I think they are on the verge of being surcharged and that demands an inquiry,” said Sasra chief executive officer Carilus Ademba (right).

He said the sacco was now on a sound footing and was filing regulatory reports as required.

“We are satisfied with its performance and compliance,” Mr Ademba said.

George Ototo, Kuscco’s managing director, said the inquiry could be related to the fraud that took place.

According to the latest Sasra supervision report, United Nations Sacco had 3,969 members and total assets of Sh5.6 billion. It had advanced loans worth Sh4.83 billion against deposits of Sh4.724 billion.

The largest sacco in the country as at the end of last year was Mwalimu Sacco with 49,040 members, total assets of Sh19.3 billion; loans of Sh17.6 billion and deposits of Sh15.4 billion.
The Commissioner of Cooperatives can order an inquiry into any savings and cooperative society while Sasra is restricted to the supervision of deposit taking societies ones, whose number stands at 215.

In August this year, Sasra banned three directors of Nandi Hekima Sacco — chairman John Korir, secretary Robert Seroney, and chief executive officer Silas Kipkemboi — from holding office for three years.

They were found to have defrauded the Sacco which draws membership from farmers by running a parallel operation.

The three had registered Hekima Co-operative Holdings, an agricultural inputs supplier owned by Mr Korir and Mr Seroney and advanced it money under the pretext that it was a subsidiary of the sacco.