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Five blacklisted savings and credit societies made public

Monday September 14 2015

DECI members wait outside the society’s offices for a refund of their money after the pyramid scheme collapsed in 2008.

DECI members wait outside the society’s offices for a refund of their money after the pyramid scheme collapsed in 2008. PHOTO | FILE 

MWANIKI WAHOME
By MWANIKI WAHOME
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Sacco Societies Regulatory Authority has blacklisted five savings and credit societies for taking deposits from the public yet they are not registered to do so.
Some of these buy land and sub-divide it into plots for members.

They are Good Life Sacco Society and related Fedha Micro-Finance Investment Ltd, Prevailing Sacco Society Ltd, New Milimani Sacco Society Ltd, Millionaire Sacco Kenya and Urithi Premier and related Urithi Housing Co-operative Society Ltd.

Acting Sasra chief executive, Mr John Mwaka, published an advert in the Nation Thursday warning the public about the saccos.

He said they were collecting money “from the public with false promises of favourable returns on savings and or deposit accounts.”

The authority warned the public that those dealing with these unregistered entities were doing so at their own peril should they lose their money.

NOT REGISTERED

Sasra said these saccos were not registered and cannot collect money from the public or run front offices.

He said that Sacco societies are legally restricted and limited to only carry out non-withdrawable deposits to lend to members.

“Such societies are prohibited from providing Fosa services such as deposit accounts of any description, ATM services and mobile money business among other,” the caveat said.

But Urithi Sacco manager, Mr Isaac Gathara, said: “We are registered and we shall make a formal response on the matter soon.” Urithi Sacco has been looking for members to buy land and houses. It was established two years ago.

The manager of Good Life, Mr Peter Wanjohi, said the company has been in existence for the last three years and that it had communicated with Sasra in the past and explained that Good Life and Fedha only shared the chairman who later resigned from Good Life.

“We have had challenges after some members went to court demanding Fedha to give them interest for assets we bought that include land and guest house in Eldoret,” Mr Wanjohi said.

He said Good Life has 20,000 members and made a profit of Sh95,000 the first year and Sh2.5 million in the second year. He said the sacco now faces panic withdrawals after Sasra issued the warning.