KCB Bank Sacco, specifically Kencom Sacco, has been thrust into the limelight following reports of a scandal involving 29 million shillings.
This controversy highlights the troubling practices within the sacco, which reportedly accepts deposits from the public despite lacking registration with the Sacco Societies Regulatory Authority (SASRA) as a deposit-taking institution.
Such operations raise questions about its legitimacy and the protection of investors’ funds.In a shocking development, it is alleged that officials of Kencom Sacco recently sold shares held at Cooperative Bank to Nation Sacco Ltd for 29 million shillings.
Rather than reinvesting the money for the benefit of members, the funds were allegedly divided among four officials.
One of these individuals reportedly used 5.1 million shillings to pay for their child’s education in the United States, a move that has left members infuriated and deeply concerned about the misuse of their hard-earned savings.
Adding to the controversy, the sacco appears to have been operating in a manner that disadvantages its members.
There has not been an Annual General Meeting (AGM) since 2018, a basic requirement for any legitimate sacco.
Without these meetings, members have been left in the dark about the sacco’s financial health and operations.
This lack of transparency raises questions about whether the sacco’s primary objective is to serve the interests of its members or those of its top officials.
Reports suggest that members face financial risks. Individuals saving with Kencom Sacco are said to be at risk of losing their investments with little to no chance of recovery.
Many have already initiated legal action to reclaim their funds, but the sacco has been unable to process refunds, citing insufficient resources.
Despite these challenges, the sacco continues to accept new deposits, misleading unsuspecting investors into believing that their money is secure.
The sacco’s questionable dealings are not limited to deposit-taking activities.
Reports have surfaced involving fraudulent real estate transactions in Runda, where properties were reportedly sold multiple times without proper title transfers.
Additionally, loans taken for various projects remain unpaid, suggesting potential misappropriation of funds.
Such practices have only deepened members’ distrust and highlighted a lack of accountability within the organization.
Kencom Sacco’s issues are further exacerbated by a lack of effective oversight from the relevant regulatory bodies.
The Ministry of Cooperatives, which is tasked with ensuring the proper management of such organizations, has seemingly failed to intervene decisively.
This failure raises serious concerns about the government’s role in safeguarding citizens’ investments and maintaining order within the cooperative sector.
The exposure of these fraudulent activities paints a grim picture of Kencom Sacco and, by extension, KCB Bank Sacco’s reputation. Investors and members are left grappling with uncertainty, financial loss, and eroded trust.
The ongoing legal battles and persistent scandals suggest a systemic problem that requires urgent intervention.
Without accountability and stringent regulation, such malpractices will continue to thrive, leaving countless members vulnerable to exploitation.
