Fears rife over financial mismanagement as probe at Safaricom Sacco ends
Senior managers at Qona Savings and Credit Cooperative Society Limited (Qona SACCO), formerly Safaricom Sacco are tongue-tied amid specualtions of possible mass layoffs and possible prosecution over suspected massive financial fraud and insider lending as the audit process comes to an end.
In late September, the government ordered an inquiry into Safaricom Sacco, recently rebranded as Qona Sacco, following allegations of financial mismanagement.
“Yes, we are awiting the report but the mood is tense. Some managers have started carting away their documents,” an insider revealed.
In a Gazette Notice, Commissioner for Co-operative Development David Obonyo directed that the investigation cover the Sacco’s financial and operational status, its by-laws, and the conduct of both current and former management committees.
“I authorise Silars Okoth Dede, Assistant Director of Co-operative Audit; Benjamin K. Rop, Principal Co-operative Officer; and Michael Kangethe, Senior Information Technology Officer, to hold an inquiry within fifteen (15) days from the date hereof at such place and time as may be expedient and duly notified by them,” the notice reads in part.
The probe follows an audit by PricewaterhouseCoopers (PwC), which reportedly uncovered massive mismanagement at the Kenya Union of Savings and Credit Co-operatives (KUSSCO), resulting in member losses exceeding Sh12 billion.
The revelations have forced several saccos to make loss provisions, potentially leading to reduced dividends for savers.
Founded in 2001 as a staff savings initiative for Safaricom employees, the Sacco, now with more than 18,000 members and assets surpassing Sh11.5 billion, rebranded to Qona Sacco as part of efforts to modernize operations and expand its membership base beyond Safaricom staff.
Commissioner Obonyo emphasised that the process will ensure transparency and protect members’ interests, reminding officers and members that the Co-operative Societies Act outlines specific provisions on the costs of inquiry (Section 60), recovery of expenses, and offences and surcharges (Sections 73 and 94).
These provisions allow the government to recover the cost of the investigation from the society if wrongdoing is established.
The decision to investigate Qona Sacco comes amid heightened scrutiny of Kenya’s cooperative sector, which holds billions in member deposits and plays a vital role in financing small and medium enterprises (SMEs).
Saccos s are a cornerstone of Kenya’s financial inclusion model, providing affordable credit and savings opportunities to millions.
