How a Savings Scheme Turned into a Nightmare for Kenyan Man in South Africa

Thomas Ondabu Obure embarked on a challenging journey to South Africa in 2014 driven by the desire to provide for his family.

After being denied a tourist visa, he resorted to unconventional means, entering the country through a network of smugglers. His determination remained steadfast despite the initial hardship of finding a low-paying job and facing prejudice. He soon adapted to the harsh living conditions and frigid winters, saving diligently towards his goal. However, his undocumented status presented a significant obstacle. Unable to open a bank account due to know-your-client regulations, Obure faced the dilemma of where to safely save his hard-earned money.

Fortunately, he discovered Ekeza Sacco, a savings and credit cooperative society, through a former employer. This organization offered a glimmer of hope, allowing him to save and even access loans, a crucial step towards achieving his dream of financial independence. Empowered by this newfound opportunity, Obure used his savings to establish a small shop. He meticulously kept track of his deposits in a passbook, ensuring transparency and accountability. After two years of consistent saving, he felt confident enough to return to Kenya. His vision was clear: to purchase a matatu and become his own boss.

Obure approached Ekeza Sacco intending to secure a loan of Sh1 million, using his accumulated savings of Sh336,940 as collateral. He envisioned a brighter future, one where he wouldn't be subject to the whims of employers and could potentially earn significantly more. His calculations, informed by friends in the transportation business, indicated the potential for substantial daily profits. Unfortunately, Obure's aspirations were dashed upon his return to Kenya in 2018. Ekeza Sacco was embroiled in a legal quagmire with its chairman David Gakuyo accused of defrauding over 50,000 depositors of more than Sh1 billion. While Gakuyo promised to repay the stolen funds, the loan program remained suspended, leaving Obure and countless others in limbo.

Dejected yet persistent, Obure waited patiently for two weeks as advised by Sacco officials only to be met with silence. He then made the arduous journey back to Nairobi, seeking answers. His hopes were further dampened when he learned that not only were loans unavailable, but withdrawing his deposits would also require a lengthy 60-day waiting period after applying. Despite waiting nearly six years, Obure has yet to receive his rightful savings. In 2022, he was offered a piece of land in Nakuru as compensation, a promise that ultimately proved hollow as no transfer ever materialized. This ordeal highlights the devastating consequences of financial scams and the plight of individuals caught in their wake.

A recent audit revealed that over Sh1 billion had been siphoned from Ekeza Sacco into companies under Gakuyo's control. He is currently under investigation and assets suspected to be acquired through fraudulent means have been frozen. The Kenyan authorities are determined to bring Gakuyo to justice and recover the stolen funds, offering a glimmer of hope for Obure and other affected individuals.