Sh. 2.56 billion invested by over 50,000 Kenyans in Gakuyo’s Ekeza Sacco is at risk.
It has now emerged that a liquidation order has been issued on the sacco.
Commissioner of Co-operatives Mary Mungai said compulsory liquidation was necessitated by findings of an investigation that revealed Ekeza had failed to meet its members’ expectations.
The directive also saw appointment of two liquidators, assistant director of co-operative audit Stephen Kamau and principal co-operative officer Philip Ukhevi, to oversee the process within the next one year.
“I authorise them to take into their custody all the properties of the said society including such books and documents as are deemed necessary for completion of the liquidation,” she said.
According to the Business Daily, this means Ekeza Sacco offices have been shut down and its operations taken away from directors to facilitate termination of its operations. This will see its assets sold and money in its accounts taken out to repay creditors. Anyone found liable could face criminal prosecution or be surcharged.
Ekeza Sacco members were required to part with Sh. 10,000 as booking fee for a house and continue saving money for selected houses, which saw member savings rise to Sh. 2.56 billion while housing loans currently stand at Sh. 2.6 billion.
Ekeza Sacco is owned by politician and preacher David Kariuki alias Gakuyo.