Corruption escalation in the nation has blasted off the roof and took the major part of the recent 6th Devolution Conference in Nyeri, it has also seen the former Premier Raila Odinga engage in a war of words with the DP William Ruto.
Managers of cooperative societies who misuse members’ deposits will face the law, Interior Cabinet Secretary Fred Matiang’i has said.
Dr Matiang’i’s warning comes on the back of recent claims of misappropriation of members’ savings at the troubled Ekeza Sacco.According to Matiang’i, saccos hold Sh230 billion in deposits, and have to be regulated properly so as to safeguard this money.
The Interior CS, who was speaking yesterday during a delegates meeting for Police Sacco, said the societies are prone to corruption just like government institutions are.
“The President is serious about the fight against corruption. Whereas graft is deeply entrenched in State agencies, saccos are not immune to it,” Matiang’i said.
Matiang’i lauded the Police Sacco for helping its members get loans to purchase houses, an effort he said was a big boost for President Uhuru Kenyatta’s affordable housing plan.According to the CS, Police Sacco has disbursed Sh24 billion so far as loans to its members. Most of it has gone into purchasing land and houses.
Matiang’i urged members to plough back half of that money into the sacco so that it can be invested. He also told Police Sacco managers to keep offering cheap credit to members.
He noted the 15 per cent interest rate charged on some loans advanced by the sacco as too high, though the interest is charged on a reducing balance. He said such rates are not affordable to a majority of members.
“I wish to challenge the leadership and management of this sacco to revisit the core principles and values for which it was founded upon,” said Matiang’i.“I believe the principles stand to shield members from financial ruin that is prevalent in the open markets.
”The sacco leadership was represented by its chairman David Mategwa. Inspector General General of Police Joseph Boinnet lauded the sacco for embracing ICT in its work.
This comes just weeks after Ekeza Sacco owned by David Ngare popularly known as Gakuyo came down crumbling and which the CS id keenly following assuring the investors that he’ll follow it to it’s tail end