Regulator seeks time to respond in Ekeza Sacco suit

Commissioner of Co-operatives Mary Mungai. PHOTO | DIANA NGILA | NMG
Commissioner of Co-operatives Mary Mungai. PHOTO | DIANA NGILA | NMG 

The Commissioner for Cooperative Development has asked for more time to respond in a case filed by Ekeza Savings and Credit and Credit Cooperative Society (Sacco), challenging its deregistration.

Appearing before Justice Pauline Nyamweya on Tuesday, Mary Mungai said she needed three days to file and serve her reply.

Although Ekeza opposed the adjournment arguing that the Ms Mungai intends to delay the conclusion of the case, Justice Nyamweya said she needed to hear all sides before granting any orders.

Through lawyer Virginia Shaw, Ekeza said Ms Mungai had appointed a liquidator to wind up the sacco, hence failure to file a response was a delay tactic. She added that Ms Mungai had promised to send a letter to the sacco, detailing why it was deregistered, but they were yet to receive the letter.

“That the chairman (David Ngare) did not receive the letter despite persistent requests and even after a visit to the respondent’s office,” Ms Gladys Muriithi, the CEO of Ekeza said in a sworn statement.

Ekeza Sacco moved to court seeking orders to quash the decision of the commissioner. The sacco further wants Ms Mungai stopped from making any further comments alleging that Ekeza was deregistered for failing to comply with the law.

Through a gazette notice published on March 23, Ms Mungai cancelled the registration of the sacco stating that it had failed to meet its objectives.

But Ekeza argued that the move was in breach of rules of natural justice and motivated by malice. She added that it has put into peril the fate of the business and its over 50,000 members.

The sacco was formed in 2014 and an AGM held on September 17, 2016. The second AGM was shelved due to political climate and on advice of the commissioner, Ms Muriithi said.

Justice Nyamweya directed the case to be heard on April 18.