CS Matiang’i Warns Heads of Rogue Saccos of Crackdown

Interior Cabinet Secretary Fred Matiang’I has his eyes on rogue Saccos that mismanage members’ deposits.

The CS said that Saccos are holding 230 billion shillings in deposits creating a need for them to be regulated properly to ensure the money is safeguarded.

Dr Matiang’i’ spoke during a delegates meeting for Police Sacco with his warning coming at a time when hundreds of Kenyans are grappling with the loss of their lifetime savings through Saccos, pyramid schemes and con artists.

Saccos such as the troubled Ekeza Sacco, founded by Televangelist David Gakuyo, have minted lifesavings of hundreds of Kenyans. Gakuyo who is currently in police custody grew into a household name following his advertisement of plots of land through the Gakuyo real estate.

CS Matiang’I said Saccos were prone to corruption just like other Government institutions and Kenyans need to be vigilant of where they invest.

“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.

The CS mentioned that the Police Sacco had assisted the officers acquire loans to get houses with 24 billion shillings already having been disbursed as loans. The police Sacco approved 220 million shillings as dividend to its members during the delegates meeting.

Matiang’i also weighed in on the 15 percent interest rate charged on some loans advanced by the police Sacco saying it was too high despite the interest is charged on a reducing balance.

“I wish to challenge the leadership and management of this sacco to revisit the core principles and values for which it was founded upon,” the CS said adding that he believed principles stand to shield members from financial ruin that is prevalent in the open markets.

Inspector General of Police Joseph Boinnet was also present in the delegation and lauded the Sacco for embracing ICT in its duties.