Market News

Home ownership in doubt as Sh3bn sacco shut down


Bishop David Ngari, Ekeza Sacco founder. FILE PHOTO | NMG



  • Ekeza Sacco has been ordered to shut down its 26 offices across the country until it complies with the law.

Dreams of owning ready-built houses for hundreds of people who saved with Ekeza Sacco could be dashed after the government revoked its licence.

The society, which is said to have received about Sh3 billion by the end of 2016 from its 85,000 members for the home ownership project, was ordered to shut down its 26 offices across the country until it complies with the law.

Ekeza Sacco, owned by tele-evangelist and founder of Calvary Chosen Centre Bishop David Ngari aka Gakuyo came under severe criticism last year after some of its members accused it of backtracking on the home ownership pledge.

This saw its operations halted after the government ordered investigations into its activities.

But its founder, who also serves as Kiambu Governor Ferdinand Waititu’s economic advisor, strongly defended his business.

READ: New policy finalised to spur growth of co-operative societies and saccos

Gakuyo is also the founder of land buying firm, Gakuyo Real Estate which sells land and builds houses in various parts of the country as well as Gakuyo Motors based in Thika.

In a gazette notice published last Friday, the Commissioner of Co-operatives, Mary Mungai, said Ekeza Sacco’s registration certificate had been cancelled adding that its officials led by its chairman David Ngari, had 60 days to lodge an appeal with the Industry, Trade and Co-operatives Cabinet Secretary Adan Mohamed.

“Any member of Ekeza Sacco Society aggrieved by this order may within sixty (60) days from the date this order is published in the Kenya Gazette appeal to the Cabinet Secretary responsible for Cooperative Development,” said Ms Mungai.