KCB Bank Sacco is at the center of a brewing financial storm following allegations of a KES 29 million scandal involving top officials.
Reports indicate that the funds were allegedly siphoned from Sacco shares held at Cooperative Bank.
The shares were sold to Nation Sacco Ltd for KES 29 million in a transaction that bypassed due process.
Disturbingly, the proceeds were allegedly shared among four officials, one of whom used KES 5.1 million to cover their child’s education expenses in the United States.
The allegations have sparked outrage among members, many of whom now question the integrity of the Sacco’s leadership.
With no Annual General Meeting (AGM) held since 2018, concerns about transparency and member engagement have reached a tipping point.
Sources claim that the Sacco continues to collect deposits from members despite dwindling financial stability, placing members’ investments at significant risk.
Further compounding the issue, legal actions have been initiated by members seeking to recover their funds.
However, insiders suggest that the Sacco lacks the resources to process refunds, heightening fears of potential losses for investors.
These allegations also extend beyond the financial transactions to questionable real estate deals, including properties in Runda reportedly sold multiple times without proper title transfers. Loans taken for various projects also remain unpaid, raising red flags about potential mismanagement.
The Ministry of Cooperatives and the Sacco Societies Regulatory Authority (SASRA) are under pressure to intervene.
Stakeholders are demanding immediate audits and strict measures to safeguard members’ investments.
As the scandal unfolds, the fate of KCB Bank Sacco hangs in the balance, leaving members anxiously awaiting accountability and resolution.
