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Sacco regulator urged to crack the whip on fraudulent savings’ societies

The  Sacco Societies and Regulatory Authority (SASRA) has been urged to crack the whip and firmly deal with Savings and Credit Cooperative Societies that defraud Kenyans.

The  Unison Sacco Chairman, James  Muhandi called on SASRA to weed out Saccos whose financial background was shaky as they were prone to sudden collapse leaving members disoriented over lost savings.

Speaking over the weekend during the Sacco’s Annual General Meeting held at Wiyumiririe trading centre, Muhandi added that the regulatory authority ought to carry out regular and thorough audit of all savings societies operating in the country and ascertain their worthiness in the financial market.

His sentiments come in the wake of recent revelations that Ekeza Sacco run by controversial preacher, David Kariuki Ngare collapsed and thousands of members are staring at losing over Sh.1 billion of their life savings.

Authorities have since ordered a freeze on the proprietor’s assets as it seeks to recover members savings.

Muhandi also cautioned Kenyans against investing in Sacco’s that were unstable or have a previous dented image as they risked losing their money.

The  Unison Sacco AGM  was informed that despite the hard economic times experienced last year, income had risen to Sh.476 million up from Sh.396 million the previous year. This translated to a 20 percent growth.

“The year ended was quite difficult due to adverse economic conditions. Most businesses were affected and the Sacco was not an exception,” said the chairman.

The Board of Directors recommended to members first and final interest deposits of 12 percent and dividend on shares of 13 percent. During the previous year, members were paid interest of 11.2 percent while dividends stood at 13 percent.

The report indicated that the organisation’s membership rose to 25,745 in 2018 from 21,714 the previous year. Total asset as at the end of the financial year was Sh.3.8 billion compared to previous year’s Sh.2.1 billion.

By  Martin  Munyi

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