Kisumu Municipality Teachers Sacco had deposits in excess of Sh52 million at the time of closure.
The sacco, which had about 635 dormant and 282 active members at the time of closure, has been facing numerous challenges.
In 2016, members of the society defaulted on Sh9.1 million loans for nine months.
Kisumu Municipality Teachers Sacco, which has been operating for the last four decades, has been shut down.
Commissioner of co-operatives Mary Mungai on Monday said even though members of the sacco had resolved that the society be dissolved, liquidation was necessary because it had failed to meet member’s expectations. The sacco had deposits in excess of Sh52 million at the time of closure.
The directive has seen the appointment of Kisumu senior assistant director of co-operatives audit Lucas Luganda as the liquidator to oversee the process for a period not exceeding one year.
“Whereas members of Kisumu Municipality Teachers Sacco have resolved that the society be dissolved under section 61 (1) of the Co-operative Society Act, I cancel the registration of the said co-operative society and order that it be liquidated,” she said.
“I appoint Lucas Muthami Luganda, senior assistant director of co-operatives audit, Kisumu, to be the liquidator for a period not exceeding one year and authorise him to take into custody all the properties of the said society including such books and documents as are deemed necessary for completion of the liquidation.”
The sacco, which had about 635 dormant and 282 active members at the time of closure, has been facing numerous challenges.
In 2016, members of the society defaulted on Sh9.1 million loans for nine months.
According to former chief executive Joseph Oganga, some 56 members owed the whole amount.
He warned members that the sacco risked collapsing if they kept on defaulting on loans.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
