The Sacco Societies Regulatory Authority (Sasra) has appointed an insider, David Amiani Sandagi, as its new chief executive officer after his predecessor Peter Njuguna opted not to seek a new term.
The sasra board of directors on Tuesday announced that Mr Sandagi would serve as CEO in an acting capacity effective August 18, 2025.
The appointee had been serving as the director of corporate affairs at Sasra.
Mr Njuguna, who had occupied the corner office at Sasra for four years since August 2021, said he opted not to carry on.
“My term came to an end, and I chose not to contest for another term,” he said when reached for comment.
Under the Sacco Societies Act, one is allowed to serve as Sasra CEO for four years and is eligible for renewal for the same period.
''I believe I have given it my best during my tenure as Sasra chief executive officer, especially on matters of regulations and compliance, and I strongly believe Mr Sandagi and the team at Sasra are capable of steering Sasra to the next level,’’ Mr Njuguna said on the phone.
Mr Njuguna’s exit comes months after the sacco industry was rocked by revelations of Sh13.3 billion financial impropriety at the giant Kenya Union of Savings and Credit Co-operatives (Kuscco).
A PwC forensic audit revealed that Kuscco, which used to receive billions of shillings from saccos for investments and lending to cooperatives, had cooked its 2022 financial accounts, backed and signed by an external auditor, Alfred Basweti of Omenye and Associates.
However, it emerged that Mr Basweti had died long before, and Kuscco officials forged his signature.
Kuscco has opened cases against former officials, including Mr Ototo. Others who were charged include former chairman George Magutu Mwangi, ex-finance manager George Ochola Owino, Jackline Pauline Atieno Omolo, who was offering legal services, and Mercy Njeru, who led the controversial radio project.
Kuscco has since turned to the State for assistance in tracing 150 saccos that borrowed Sh1.33 billion in loans before sliding into dormancy or closing shop.
Kuscco says the 150 saccos tapped the loans from its Central Finance Fund, which offers support for saccos in need of cash to steady their operations.
Records show that 35 of the 150 saccos tapped loans, yet they had no fund deposits at Kuscco at all. The rest had deposits of Sh133.8 million at Kuscco. In total, the 150 borrowed Sh1.46 billion, which, when netted against the deposits, left Kuscco with the Sh1.33 billion exposure.
