Gov't Reinstates Ekeza Sacco's License

Troubled Ekeza Sacco has received a major reprieve following the government decision to reinstate its license.

In a gazette notice, the Commissioner of Cooperatives Mary Mungai has announced the reinstatement of the society's registration.

Ms. Mungai says that the decision to lift the ban was made after the Sacco met set conditions.

“Whereas the cancellation/liquidation order was invoked and on conditions set out in the Cabinet Secretary for Industry in a letter dated June 25, 2018, which has been complied with. I now in powers conferred to me revoke the cancellation/liquidation order dated March 26, 2018, and reinstate the registration of Ekeza Sacco,” reads part of gazette notice.

Ms. Mungai revoked Ekeza Sacco's license on March 26th, 2018 on allegations of flouting the law.

This came after her agency received complaints that the society was sharing office space and bank accounts with Gakuyo Real Estate, a sister company of Ekeza.

At the time, the society had 26 branches across the country, Sh2.56 billion in deposits and a membership of more than 50,000, 5, 000 of them being Kenyans in the diaspora.

The founder and chairman of the Sacco David Kariuki Ngare alias Gakuyo has welcomed the reinstatement of the license, saying that it's a clear indication that the society had not flouted the law.

He has urged members seeking to have their money refunded to be patient as the Sacco initiates the process.

Gakuyo had earlier offered to sell prime properties in Nairobi, Kiambu, and Murang'a in order to refund members' savings.

“It is my promise to all the 53,000 members of Ekeza Sacco that no one will lose their money. I am selling some of my properties and soon I will repay members all their savings,” said Gakuyo.