In the recent history, Kenyans have had to bet their lives on the stability of so called Kenya’s leading lenders- like in this case, KCB Bank Kenya, which is dangling people’s savings on their collapsing Kencom Sacco.
Kencom Sacco
Over Twenty years ago a few staff, who had good intentions, of Kenya Commercial Bank, now KCB Bank Kenya Ltd, decided to start a Sacco for members of the bank. The initiative gave birth to Kencom Sacco in July 1994 as a SACCO for KCB employees.
Today,the Sacco that came to be known as Kencom Savings and Credit Cooperative Society, is one of the most terribly falling of the most unsuccessful Saccos in Kenya.
The initial plans of the Sacco was to facilitate a bridge that will have members loan facilities processed without
providing tangible security as is a requirement by banks that gave birth
to KCB’s in-house Sacco.
Of course, Kencom Sacco has members drawn from other two banks namely, National Bank of Kenya (NBK) and Cooperative Bank of Kenya.
This was to solve members’ pressing financial needs. The suitability of the idea was based on objectives that are formulated towards promoting Savings mobilization from members, provide affordable credit facilities, and other financial & non-financial advisory services.
In stead of the Sacco providing world class financial solutions, the management is working tirelessly in disconnecting people, quacking ideas & looting capital through unattractive financial products, un-audited returns, penurious services.
I mean, the SACCO it self should be included in things that are leading to depression in this country. Most, if not all ordinary members are having migraines in the flawed application of funds. Is this what you people call “empowerment”??
Speaking to this writer on anonymity, members have confirmed that Kencom Sacco members haven’t received loans since January this year.
According to some of them that we spoke to, their financial needs are not met at all by the Sacco. See, this is the kind of crap that members have to go through. They have to kiss the sacco’s ass? That’s me, I did that. But is it the only way to get their funds?
Some members have lamented that it takes up to 6 months for loan applications to go through, and that is if one is very lucky.
“It is not me alone, I have been waiting for my contributions for the past one year. I have visited Kencom House millions of times. One time, they told me that i can take them where i want,” a disgraced member speaking to Kenyan Bulletin via phone said.
Kencom is one Sacco that clearly defines what mismanagement and corruption is all about. The practical living proof of top graft and impunity.
Members money are stuck inside the Sacco, no dividends have been paid for a long time now neither do they
approve loans.
“For instance, you can save as high as close to one million but when you apply for say sh1 million or slightly above, you will wait even beyond one year as the loan remain unprocessed. I waited till i fade the shit up,” another member told this writer via mail.
Many people are facing the same but are absolutely scared. I think DCI should start by checking on them and know why they fear speaking out. Who is this that is threatening members?
People apply for loans and only senior influential staff get theirs approved. But if your contributions fails, the HR serves you a letter. Some members alleged that the letters have the most rudest languages on earth. This insult is added to an injury that Kencom Sacco takes more than a half a year to pay off members who no longer work with KCB.
Members of the Sacco believes that whatever is happening at Kencom Sacco is a collusion amongst Kencom Sacco managers, their counterparts at KCB, NBK and Coop banks, and senior officers from Sacco Societies Regulatory Authority (SASRA).
In 2018, a whistle blower blog revealed that that trouble started brewing at the Kencom Sacco after internal audit queries were raised over Sh43 million contract to construct an access road for Sacco’s housing project in Runda.
Insiders had told the blog that the one-kilometre tender was initially projected at a cost Sh17 million but was later inflated almost triple of the initial allocation.
KCB and NBK
KCB Bank acquired National Bank of Kenya (NBK) in September 2019 after doing all the necessary works and filling documents that gave it permission to do so. Less than six months later, the bank has entered into some unlawful schemes at NBK.
Kencom Sacco was in the end financed by NBK and they completed the project. Due to too many kick-backs allegedly paid to Musa Adan, Wilfred Musau and Mohamed Hassan, the sh1.3 Billion loan remained unpaid and
hidden under the opaqueness Islamic Banking Portfolio.
Reuben Koech colluded with Eustace Nyaga of Remedial department and released securities belonging to Chris Kisire as a tribal and kickback consideration. This is despite Kisire’s loan being Non-Performing.
Koech had been sacked sometimes back but was reinstated after Deputy President William Ruto intervened. This shows that Mr. Reuben had powerful friends who accepted fraud to go on at NBK.
“Reuben Koech and Wilfred Musau were sacked on Thursday of December 5, 2019 for various counts of fraudulent activities with the recent being fraudulent release of securities for non-performing borrowers in
exchange of bribes. Said Borrowers confessed after being cornered by DCI & EACC” a source revealed.
Late last year, Wilfred Musau was accused by blogger Cyprian Nyakundi that he had allegedly hired hit-men to eliminate him for “Unfair coverage” on his blog, cnyakundi.com.
In 2017 while testifying before a senior principal magistrate Ms Martha Mutuku, Charles James Oduor, a sales executive at RMA Motors Company, said a posh Ranger Rover registration number KCB 750Z, valued at Sh23 million was registered in the name of John Kago, and not Mr Ben Gethi, his co-accused.
“The said motor vehicle was delivered and received by Mr Kago at the basement parking area of Kencom House. It has never been transferred to Gethi,” said Mr Oduor.
KCB Group chief executive officer Joshua Oigara earned Sh299.1 million in salary, bonus and allowances in 2019, a year when Kenya’s biggest bank by assets announced a record net profit.
The US intelligence marked @KCBGroup as one of the weakest links in destabilizing S.Sudan as they played hide role in aiding money laundering.
Mr Oigara’s compensation increased by 9.6 percent or the equivalent of Sh26.2 million from Sh272.9 in the previous year on the back of a higher salary of Sh72 million that went up 5.9 percent from Sh68 million in 2018.
Mr Oigara, 45, whose renewable term of five years ends in 2023, was also paid deferred compensation of Sh48.4 million as bonus last year and a gratuity of Sh21.6 million.
Mr Oigara’s non-cash benefits that include medical insurance, club memberships and professional indemnity total up to Sh1 million. Be the Judge…
All these monies floating on the checks of the CEO yet the poor member of the Kencom sacco can’t be allowed to access their few coins the have already saved at the collapsing subsidiary. Again, is this who you call a super CEO?
You know what? I’m also fade up. Someone needs to stop this madness. This is insane…
