The Afya Co-operative Savings and Credit Society (Sacco), a once-trusted financial institution primarily serving healthcare workers, is facing a severe financial crisis that has left its members in a state of panic.
Sources within the Sacco have revealed a disturbing picture of mismanagement and corruption, casting a dark shadow over the future of the organization.
At the heart of the crisis are allegations against key figures in the Sacco’s leadership, including National Chairman Beatrice Mogire, CEO Peter Gisembe, and Chief Internal Auditor and Risk Compliance Manager CPA James Ondiek.
Confidential sources claim that Mr. Ondiek is implicated in a major scandal involving the disappearance of millions of shillings from the Front Office Savings Accounts (FOSA) at the Kisumu branch.
The situation at this branch has been worsened by the failure of the County Government of Kisumu to remit member deductions totaling Ksh 800 million.
The financial instability at AFYA Sacco has led to significant disruptions for its members.
Many have found themselves unable to access loans or withdraw their savings, creating a financial strain for healthcare workers who rely on the Sacco for their everyday needs.
As anxiety mounts, there are growing fears that the Sacco may be on the brink of collapse, putting billions of shillings of members’ hard-earned money at risk.
The Sacco Societies Regulatory Authority (SASRA) is reportedly considering drastic measures to address the situation. These measures could include suspending the current board of directors, led by Mrs. Mogire, and appointing a caretaker management team to stabilize the Sacco.
However, these potential interventions have yet to materialize, leaving members uncertain about the future.
The root of AFYA Sacco’s financial woes appears to be multifaceted.
Mismanagement of funds, poor decision-making, and inadequate financial planning are among the leading causes. Additionally, the Sacco is grappling with a high level of non-performing loans, further straining its liquidity.
Without sufficient funds to meet the demands of its members, the Sacco has been unable to fulfill its primary role as a provider of savings and loan services.
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