Officials fleece Kumisa Sacco millions

Officials fleece Kumisa Sacco millions

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The chairman of Kumisa Savings and Credit Co-operative Society John Njoroge took a loan of Sh800,000 but he has defaulted in repayment.
Njoroge according to an insider, together with other Sacco officials, currently owe the institution over Sh50 million. The Sacco is in serious financial troubles and is unable to give loans to its members.


John Gakure, the Sacco’s secretary has not paid Sh1.2 million he owes the society. The Sacco is based in Kiambu. Members we talked to revealed that the official could not account for Sh7.5 million withdrawn in 2016 to facilitate the buying of land in Mai Mahiu.
Members are now accusing the chairman of supervisory committee Martin Kinyanjui of protecting the officials and blaming members for not servicing their loans.
Kinyanjui in his report claimed that out of more than 2,000 members who got loans, only 200 are repaying.
Eyebrows have been raised on Sh1.5 million collected between January and July this year in mobile transfers that cannot be accounted for. Surprisingly, Sh300,000 collected during the same period in cash was used as petty cash and was not banked.
Also unaccounted for is a Sh365,000. The official sold 43 pigs to Farmers Choice.
Weekly Citizen has information to the effect that the Sacco is unable to pay rent that has accumulated to Sh233,000. To show all is not well, the Sacco is to repay a bank loan of Sh200, 000 per month but instead manages only Sh100,000.
Employees we spoke to revealed that Njoroge, the chairman, who happens to be also in charge of credit, has been able to manipulate documents in his favour and those of his cronies thus the current situation being experienced. Workers have not been paid for the last three months.
For now, the Sacco’s future is bleak with members not being refunded money or getting loans.
Sources say, Kiambu cooperative officer Peter Mwangi has been protecting the officials.
The society at one time had 2,000 members.