Let's Make Kenya Bankers Sacco Great Again

As a dedicated member of Kenya Bankers Sacco, I have always been committed to the growth, prosperity and good governance. It pains me deeply to witness the current state of affairs within our beloved Sacco. The very pillars of trust and ethical governance seem to be crumbling under the weight of financial mismanagement, sexual harassment, nepotism, and discrimination against some of our most vulnerable members including retirees, and those with lower incomes. 

The Sacco's board, supervisory board, and auditor, who are entrusted with safeguarding our financial interests, have unfortunately failed us. A whistleblower report, circulating among members, reveals flagrant instances of financial mismanagement that not only threaten our financial stability but also the confidence we place in our leadership, resulting in exposure to potential loss of approximately Shs. 2.9B. This includes off book borrowing of over Shs.200M from KUSSCO, unaccounted for 10 years, and accruing penalties of over Shs.19 M. Guarantees to a Shaba Estate developer of Shs.600M are equally not reflected in the audited accounts. It is reported that the Sacco has incured losses of over Shs.350M on a housing project. There are further losses on land to the tune of Shs.60M. These are eating into member dividends through provisions using member hard earned annual returns, thereby explaining the single digit interest earned despite hefty loan charges to members. Members have to wait for close to two months to access a loan due to fiscal mismanagement and poor governance.

These facts can be verified in a SASRA inspection report 2018 and KUSSCO statement. The current position remains ambiguous and even more glaring. There is an ongoing, single sourced, change of system intended to hide these figures. 

The employment of an aged former board member, of questionable history, without approval and vetting from SASRA, as the CEO is further alarming and in violation of the law as and this appears to be an attempt to institutionalize a cover-up for the history of KUSSCO Fraudulent off book loan and Shaba Village fraud during his tenure as the Honorary Secretary. Unexplained wealth, accumulated by the board chairman, and the CEO during their tenure requires immediate investigation.

A branding project without visible benefits cost members over Shs.100M. Large loans, of high risk, were advanced to politically exposed persons and are now in default, including the single sourced branding supplier, significantly increasing the Sacco's loan loss provisions and reducing member returns.  

Additionally, reports of sexual harassment and abuse of staff by the Sacco board and CEO are deeply troubling and unacceptable. It even stated online, to the dismay of members, that some female staffs have been impregnated by senior members of the board.

The board and CEO have established a toxic environment that threatens our hard-earned savings and violates our rights. The Board and CEO have brazenly orchestrated and endorsed fraudulent schemes, systematically rewarded and elevated mediocrity, sidelined and demonized high performers, weaponized gossip as a perverse measure of performance, and cultivated a toxic workplace steeped in their own sexual misconduct, trading favors and promotions for complicity and rumor-mongering. This toxic culture is compounded by unchecked impunity and nepotism, where staff appointments and vendor contracts are brazenly awarded to direct family members and close relatives of the Board and CEO based solely on personal connections rather than merit, process, or integrity, in flagrant violation of the Sacco Societies Act, No. 14 of 2008, and Articles 10 and 27 of the Constitution of Kenya, 2010.

The restrictions placed on becoming a delegate or board member are disproportionately high. This has hedged the leadership to a select, small cartel of high net worth individuals. The imposition of untenable monthly savings requirements unfairly excludes young people, retirees, and the majority of the members from leadership roles, a move that certainly does not align with Sacco values of equitable opportunity for all.

We currently find ourselves in a position where the very bodies that should be providing oversight, namely the Sacco Societies Regulatory Authority (SASRA), the Ministry of co-operatives and MSME are not executing their roles effectively. Their complacency has only allowed the current issues to fester unchecked, threatening the future of our Sacco and its members. 

We Demand: 

1. Delegates and SASRA Immediately suspend the Board of directors, Supervisory Board, Internal Auditor, CEO for alleged fraud (e.g., undisclosed loans, procurement violations) and sexual harassment (violating Section 23 of the Sexual Offences Act, 2006). SASRA to appoint interim administrators per Section 49 of the Sacco Societies Act, 2008, to protect members and evidence.
2. SASRA and the Ministry to launch a 30-day forensic audit into fraud (e.g., KSh 200 million KUSCCO loan, Shaba Estate losses), sexual harassment, nepotism, and AML breaches. Implement reforms for inclusive by-laws, robust HR policies, and transparent procurement, per Articles 10 and 27 of the Constitution, 2010.
3. EACC and DCI to probe fraud and sexual harassment, filing charges under the Sexual Offences Act and POCAMLA, 2009. ARA to recover illegally gained wealth (e.g., from land sales, single sourcing, nepotism, construction overruns) and restore it to the SACCO, per Section 46 of POCAMLA.
4. Immediate halt to the system change to prevent loss of crucial evidence.

We ask for your support in this crucial fight for justice, transparency, and ethical governance within Kenya Bankers Sacco. By signing this petition, you are securing your deposits and investment in the Sacco and you are taking a stand for a future where all members can trust that their interests are being represented with honesty and fairness. Stand with us as we work towards a better, more equitable Sacco.

Let's Make Kenya Bankers Sacco Great Again!!