The Mountain Journal team in Nairobi
The government has put on notice pyramid schemes
operating like saccos, with interest to defraud the public of their savings.
Agriculture, Livestock and Cooperative Cabinet
Secretary Peter Munya said it has come to his knowledge that there are
mushrooming pyramid scheme operators fraudulently obtaining money from the
public.
The CS spoke in Nairobi during a breakfast
interactive meeting with sacco officials in a Nairobi hotel, where he said
SASRA fraud unit will catch up with the culprits.
“The fraud unit has finalized
investigations, caused an arrest and prosecution of fraudulent embezzlement including
recovery of Sh1.3 million from the suspect,” said the CS.
The public, he said should be advised to
desist from dealing with rogue entities that are not regulated and supervised
by SASRA, particularly when it involves savings.
“The public should also undertake due diligence
on any entity purporting to be a Sacco before embarking in saving,” said Munya.
He hinted that 50 Saccos have been certified by
the regulator as they have developed by laws to govern their operations.
Last year total assets in the control of
Saccos’ stood at Sh622 billion, up from Sh556 billion in 2019.
Loans granted in 2019 were Sh 420 billion,
as compared to Sh469 billion, reflecting a Sh49 billion increase.
SASRA Chairman John Munuve said the CS has
helped in the development of regulation, designed to strengthen the
sector.
“Despite the shocks experienced in
individual and business incomes as a result of job losses and disruptions
of value chains brought about by the advent of the COVID-19 pandemic from
March 2020, we are glad to report that the SACCO sub-sector performed
relatively well,” said Mr Munuve.
You can reach our news
desk on
Telephone – 0719-889-925
