The state takes over Ekeza SACCO after liquidation.
A truck advertising Ekeza Sacco / COURTESY. |
Barely two weeks after its de-registration, the government has
taken over the operations of Ekeza SACCO in an effort to protect thousands of
investors.
The liquidation process will take one year upon which the
cash realised will be used to pay depositors.
The Sacco is estimated to have signed up 50,000 members who
deposited some Sh2.56 billion.
This fresh order sets aside an earlier directive that
deregistered Ekeza pending streamlining of its operations to suit Sacco
requirements. The commissioner had ordered the Sacco to close down all its 26
offices countrywide until it complied with the law.
This means that Ekeza’s 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.
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.
Liquidation is the process of converting company assets into
cash, for instance, by selling them, to pay a debt.
Mungai has advised anyone aggrieved by the decision to close
down the Sacco to register their complaints with the Cabinet secretary Ministry
of Industry, Trade and Co-operatives.
“Whereas, an inspection was conducted into the affairs of
Ekeza Sacco Society under Section 61(1). Any member of Ekeza Sacco Society
aggrieved by this order may, within sixty (60) days from the date this order is
published in the Kenya Gazette, appeal to the Cabinet Secretary responsible for
Co-operative Development,” said Mungai.
In court papers filed last week by Ekeza’s CEO Gladys
Wanjiku Muriithi, the Sacco said it was in the process of separating its
operations from its sister firm Gakuyo when its licence was revoked.
Ekeza’s members had 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 Sh2.56 billion while housing loans currently stand at Sh2.6
billion.
The Sacco was founded in 2014 and an AGM held on September
17, 2016. The second AGM was shelved due to a hostile political climate before
the 2017 General Election and on the advice of the commissioner, Muriithi said.
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