Court told Jua Kali artisans will lose Sh2 billion out of Ekeza folding

Jua kali artisans

Members of a sacco stand to lose Sh2 billion following last week’s deregistration by the Government.

In a suit challenging the decision, Ekeza Sacco Chief Executive Gladys Wanjiku Tuesday told the High Court that the financial institution had 50,000 members from the jua kali sector who were likely to be the biggest casualties.

Justice Chacha Mwita heard that the sacco managers learnt of the deregistration by Commissioner for Co-operative Development Mary Mungai from the media.

“The respondent did not indicate that she was intending to deregister the applicant at all neither did the respondent point any serious breaches of the Act,” the judge heard.

According to Ms Wanjiku, an audit done last year by the co-operatives regulator was in relation to claims that Bishop David Ngari, chairman of Ekeza and Gakuyo Real Estate Company, was funding Kiambu Governor Ferdinand Waititu’s campaigns using the firm’s money. The regulator allegedly found nothing untoward.

The judge heard that the commissioner was however uncomfortable with Ekeza sharing an office with Gakuyo in all their 40 branches. She advised them to hold an annual general meeting after last year’s elections. 

She also alleged that the management was also advised to get a more advanced IT system to manage members’ records.

“The respondent has acted disproportionately, unreasonably and in breach of natural justice for she did not give the applicant a chance to answer or remedy the alleged breach following the purported audit,” the judge heard.

She said the management was already separating the two and Sh10 million had been paid to rent new premises.

In a gazette notice, the commissioner had said the co-operative society no longer served its purpose.

The dispute stems from a Sh3 billion housing deal in Kamulu, Nairobi County, which involved at least 7,000 Kenyans.