Reprieve for 50,000 Ekeza Sacco Members, including 5,000 in the Diaspora, as License is Reinstated

Government has reinstated the operation license to Ekeza Sacco following a ban that lasted for four months.

The Sacco was shutdown through a gazette notice issued by Commissioner for Co-operative Development Mary Mungai on March 23rd. Mungai cancelled the society's license on claims of the Sacco flouting the law. 

"Following numerous complaints by members who were not able to access loans and refunds of their deposits, I decided to carry out an impromptu inspection of the society."

"As a result of the inspection, it was found Ekeza Sacco and Gakuyo Real Estate did not have different branded offices, management structure and bookkeeping, including a members register as also evidenced by a management letter from the external auditor,”  Ms Mungai said in March.

“The society was deregistered for failing to adhere to requirementsset out by the Cooperatives Act.”

The cancellation left more than 50,000 members of Ekeza Sacco at risk of losing their savings and investment. Of its total membership, 5,000 are based in the diaspora. 

By the time of shutdown, the society had 26 branches across the country and Sh2.56 billion in deposits.

“The management committee is pleased to advise its members that following an appeal to the Cabinet Secretary, we have obtained a conditional approval for reinstatement of our registration,” said Ekeza Sacco chief executive Gladys Muriithi.

Ekeza moved to court to challenge its de-registration, but when the suit came up on May 4th for a ruling, the society dropped the petition to settle the case out of court.