Cyprian Is Nyakundi has exposed a brewing scandal at Sheria SACCO, where members are crying foul over new loan repayment rules under the leadership of Deputy Chief Justice Philomena Mwilu.
According to Nyakundi’s report, members who previously defaulted on their E-Loans are now being denied dividends and interest on their share capital, despite the fact that their outstanding loan amounts had already been deducted from their deposits.
The SACCO has been sending SMS notifications to affected members, informing them that their earnings will be used to recover funds and channel them back into deposits.
This move has sparked outrage, with many members calling it an unfair and punitive policy.
For years, Sheria SACCO’s E-Loans have been a crucial financial tool for its members, including judges, magistrates, lawyers, and judicial staff. The facility allowed borrowers up to three months to repay their loans, with the understanding that in case of default, the outstanding balance would be directly recovered from their deposits.
However, since Mwilu took over as chair of the SACCO, members claim that loan repayment rules have become significantly harsher. Even a single day of delay now results in a loan rollover, adding more interest before the loan is automatically deducted from deposits.
This policy change has left many members unable to access E-Loans, deepening their financial struggles. Nyakundi’s report further reveals that Sheria SACCO is not just enforcing stricter loan rules but also penalizing members by withholding their dividends and interest.
Previously, once a loan was deducted from deposits, the debt was considered settled. But now, the SACCO is reallocating recovered funds back into deposits instead of closing the debt, effectively forcing members to pay twice.
This has raised legal and ethical concerns, with some members arguing that the SACCO is engaging in fraudulent practices. An anonymous source from the SACCO told Nyakundi that these policies are part of broader financial restructuring efforts to maintain liquidity.
However, affected members insist that the move is unjust and will damage trust in the institution. Many long-term contributors who viewed Sheria SACCO as a reliable financial partner now feel betrayed.
The decision to withhold dividends and interest earnings has further fueled discontent, with members demanding transparency and dialogue with the SACCO’s management.
As complaints grow, pressure is mounting on the leadership of Sheria SACCO to address members’ grievances.
If the situation is not resolved, the SACCO risks losing credibility among its members, many of whom are legal professionals well-equipped to challenge such policies.
Nyakundi’s report highlights growing dissatisfaction and raises serious questions about the SACCO’s financial management under Mwilu’s leadership.
