Fred Matiang'i Orders Action against Ekeza Sacco Founder David 'Gakuyo' over Theft of Sh1.5 Billion Members’ Savings

Interior Cabinet Secretary Fred Matiang’i has directed Inspector General of Police Joseph Boinnet to take stern action against Ekeza Sacco founder David Kariuki Ngare alias Gakuyo and other officials who are accused of embezzling Sh1.5 billion from the society.

Speaking in Nairobi on Wednesday, Matiang’i has declared that the government will not watch as rogue Sacco officials defraud Kenyans of their hard-earned cash.

“…rogue officials mismanaging funds in the co-operative movement will be prosecuted after the conclusion of investigations,” says Matiang'i.

“One way in which we are going to support co-operative movements is to punish and bring to book those who misuse the Sacco resources. We will go after these people. We are hot on the trail of the Ekeza officials and others."

An audit into Ekeza Sacco's operations has established that Bishop Gakuyo and his wife illegally withdrew Sh1.5 billion from the society's coffers and used some of it to fund their expensive lifestyle.

The funds that were apparently transferred to his personal account belonged to more than 50,000 members of the Sacco.

Last year, the Commissioner for Cooperatives Mary Mungai revoked the Sacco’s license following complaints that Ekeza was sharing bank accounts and offices with its sister company, Gakuyo Real Estate.

The Sacco was also accused of denying members access to their savings and reneging on its promise to help them purchase homes.

Bishop Gakuyo had offered to sell some of his properties including Lillies Hotel in Juja, Salama House and Swift Breeze Hardware on Garissa Road, a quarry in Murang’a County as well as 250 acres of land in Machakos and Murang'a Counties.

He claimed the sale would enable him to raise money so he could refund Ekeza members' savings.

The sale was, however, suspended by the court until March 7th, 2019 when an inter-party hearing will take place.

The Commissioner for Cooperatives has filed the case to block Gakuyo from selling the property.