Sacco members oppose KTDA’s move

By KENAN MIRUKA  

Shareholders at Ogembo Tea Savings and Credit Cooperative in Gucha staged demonstrations protesting a move by a local tea factory to withdraw farmers’ payroll.

Hundreds of farmers affiliated to the 7,500-member Sacco waving placards and carrying twigs, marched to Ogembo Tea Factory where they demanded to be addressed by the management.

Their move came after Kenya Tea Development Agency (KTDA) declined their request to effect deductions on the tea bonus to repay members’ loans, a move that may financially cripple the Sacco.

Farmers accused factory management board directors of shifting their accounts to Irianyi Tea Sacco without their consent and expressed fears that their deposits may not be secure.

Difficulties

“We have deposited shares in this Sacco and withdrawing the payroll will ruin our investment and render many of our children jobless,” said Chairman Peterson Mang’uti.

The Sacco has been experiencing financial difficulties since January this year after a Sh20 million heist suspected to be done by employees. Four employees are facing theft charges in court.

“We will not accept to receive bonus payment from a Sacco which we never joined voluntarily,” said Omboga Nyang’au, a farmer.

The shareholders maintained the Sacco was fully registered with a share capital of Sh40 million. They urged cooperatives minister Joseph Nyagah to intervene and save their investment.

Magenche Zone director Solomon Ndege admitted 4,300 accounts had been shifted after complaints by tea farmers that the Sacco had failed to make monthly payments on behalf of KTDA.

“The Sacco has not met requirements set by Sacco Societies Regulatory Authority,” said Ndege.

However, the Sacco’s management insisted they were fully registered to operate Back Office Sacco Activity and they were in the process of meeting the Sasra requirements.