The Sh3 billion Ekeza Sacco will be audited to ascertain its assets and liabilities following its deregistration last week.
Commissioner of Co-operatives Mary Mungai said all bank accounts of the land-cum-house ownership sacco that is closely associated with land reseller Gakuyo Real Estate stand frozen with operations across its 23 offices stopped.
Ms Mungai said they took the drastic action after its proponent David Ngari aka Gakuyo failed to heed conditions set for running a sacco.
Saccos are required to hold Annual General Meeting (AGM) for members as well as submit audited accounts to the Co-operatives Office annually.
“We received complaints from county governments as well as individual Ekeza Sacco members and we directed its proponents to abide by the law. No AGM has ever been conducted or a report of audited accounts made available to us,” she said.
In last week’s Kenya Gazette notice, Ms Mungai announced the society’s closure, saying anyone aggrieved could appeal to the Industry, Trade and Co-operatives secretary Adan Mohamed within the next 60 days.
Ekeza’s woes arose early last year when disgruntled members protested their inability to access (withdraw) their savings, saying the sacco failed to build houses for them as was the agreement.
Ms Mungai said Dr Ngari failed to heed her directive that Ekeza and Gakuyo be separated to allow each to operate within the laid-down regulations of a real estate business and a sacco respectively.
“We had no choice but to close it down to facilitate an audit. “Maybe, Ekeza has not embezzled anyone’s money but we shall know the truth after the audit inspection is conducted on its accounts,” she said.