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SACCO’s warned against misappropriating Members Savings

Uasin Gishu County Executive Chief incharge of Cooperatives and Enterprise Development, Esther Mutai has warned management of savings and credit cooperative societies, Sacco’s, against embezzling members’ savings.
She expressed concern over the rate at which some Sacco’s were collapsing due to mismanagement and misappropriation of members’ contributions by those entrusted to manage the funds.
Speaking in Eldoret where she presided over the launching of Solar Ray Energy Sacco, the county minister said stern action will be taken against Sacco officials who thrive on misappropriation of members’ savings.
She gave an example of Moi University Sacco that was run down by senior officials who misused members’ savings worth Sh. 2 billion.
Moi University Savings and Credit Cooperative Society, MUSCO whose members were mainly drawn from Moi University, the University of Eldoret and Moi Teaching and Referral hospital had invested in the Sacco that owned MUSCO towers in Eldoret.
The Senate Committee on cooperatives visited the troubled Sacco last week to access the status of the multibillion shillings facility following reports that it was facing auction over nonpayment of over Sh. 1 billion owed to creditors.
The Senators, who were led by Senate Deputy Speaker Prof. Margret Kamar, have since stopped the sale of the Sacco building to pave way for further deliberation on the fate of the members’ investment.
Some Moi University workers who invested in the Sacco complained they were short-changed despite investing their monthly income in the hope that it will help them educate their children through high school to University level.
They claimed that since the Sacco collapsed they were unable to access any loan facility to educate their children and even do other investments.
Kamar assured members of the once vibrant Sacco that all efforts will be made to revive the Sacco so that they do not lose their savings.

By Kiptanui Cherono

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