Broke Ekeza Sacco to repay members savings with land

The founder of Ekeza Savings and Credit Cooperative Society David Kariuki Ngari, commonly known as Gakuyo, want to repay members, who still claim their savings, with land.

Gakuyo, in an interview on Thursday, said that the Sacco’s coffers have run dry, due to the current harsh economic environment in the country, and there’s no more cash to repay to 2,000 members who are yet to receive their savings.

The Sacco, which has been in turbulence since 2018, according to a report read to members at a special general meeting at Moi International Sports Centre, Kasarani, in February 2019 owed members more than Sh2 billion.

But Gakuyo now says that they have managed to repay members Sh800 million in cash and assets, including land parcels and vehicles worth Sh1 billion.

He said that the Sacco still owes Sh450 million to its investors, which now can only be paid in kind, adding that the Sacco management is keen to ensure that all members will be duly repaid.

He said that the members can only get land parcels worth their savings, noting that the Sacco has huge land tracts, that were surrendered by its sister firm —Gakuyo Real Estate —in various places, including Kabati in Murang’a county, Kilimambogo, Konza in Kajiado county, Nakuru and Thika.

“The Sacco currently does not have liquid money. The money that they had invested was utilised on purchasing land as agreed with the members. The business of selling lands has been severely affected by the harsh economic times in the country. Currently we only have land which we can give to the members,” Gakuyo said.

He said that the members are allowed to decide where they want to acquire the land parcels, adding that most members have already agreed to be repaid with land whose value is appreciating at high rates.

“We haven’t been generating any revenue in our firms, Ekeza and Gakuyo Real Estate, and that’s why most members were repaid with land and other assets like vehicles. I’m calling on the members who are yet to receive their dues to accept the land parcels because that’s where the money is,” he said.

Gakuyo also urged members to be aware of auctioneers and lawyers who have been on the prowl and misleading them to lodge legal suits in courts with a promise of auctioning the Saccos properties to repay them.

He said the Sacco’s assets were disposed of and money generated used to repay some of the members, adding that it’s only land parcels that are remaining.

At the same time, he said that members have also defaulted on repaying their loans amounting to Sh300 million. He pleaded with them to continue repaying so that the Sacco can get money and clear the dues it owes to investors.

The Sacco has been in an intense standoff with some 53,000 members, who have been seeking repayment of their savings since the Sacco’s troubles started in 2018.

The Sacco was deregistered and its license revoked in March 2018 by the then Commissioner for Cooperative Development Mary Mungai for violating its operation rules as well as failing to comply with the law.

The society had 26 branches and Sh2.56 billion in deposits at the time Mungai cancelled the Sacco’s licence through a Gazette Notice on March 23, 2018.

However Mungai reinstated the Sacco’s licence in February 2019 after it met the set conditions.