Delisted Ekeza Sacco fights to stay in business

In a case filed in the High Court on April 3, 2018, the Sacco seeks orders to quash the Commissioner for Cooperative Development’s decision. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • Through a Gazette notice published on March 23, Ms Mungai deregistered the Sacco, stating that it had failed to meet its objectives.
  • But Gladys Muriithi, the chief executive officer of Ekeza, argued that the cancellation is in breach of the rules of natural justice.

Ekeza Savings and Credit Cooperative Society has challenged its deregistration in court, arguing that the Commissioner for Cooperative Development acted in bad faith.

In a case filed in the High Court Tuesday, the Sacco seeks orders to quash the commissioner’s decision. The Sacco also wants the commissioner, Mary Mungai, stopped from making any further comments alleging that Ekeza was deregistered for failing to comply with the law.

'NATURAL JUSTICE'

Through a Gazette notice published on March 23, Ms Mungai deregistered the Sacco, stating that it had failed to meet its objectives.

But Gladys Muriithi, the chief executive officer of Ekeza, argued that the cancellation is in breach of the rules of natural justice. She said that the move has put in peril the fate of the business and its more than 50,000 members.

The Sacco was founded in 2014 and an AGM held on September 17, 2016. The second AGM was shelved due to a hostile political climate before the 2017 General Election and on the advice of the commissioner, Ms Muriithi said. She said members have outstanding loans of Sh2.6 billion and savings of Sh2.6 billion, which is now in jeopardy following the deregistration.

The CEO said the commissioner ordered an audit of the Sacco after rumours started circulating that its chairman David Ngari was running for political office and was likely to use members’ contributions for his campaigns. However, the audit did not reveal any issues of

Welcome!

You're all set to enjoy unlimited Prime content.