Ekeza Sacco founder David Kariuki Ngare popularly known as Gakuyo has drawn out a five-phase plan to refund money owed to members. The preacher said that all members would be given back their savings beginning this week. The Sacco owes its members KES 2 .4 billion.
About 1,500 depositors with less than KES 5,000 started receiving their money on Thursday 9 after receiving text messages the previous days asking them to avail themselves. Mr Ngare said that all members who fall in this category should be compensated by end of this week, before they embark on refunding the next group.
How Ekeza Sacco members will be paid
- Phase I – less than KES 5,000
- Phase II – KES 6,000 – KES 20,000
- Phase III – KES 21,000 – KES 50,000
- Phase IV – KES 51,000 – KES 200, 000
- Phase V – Above KES 200,000
Mr Ngare said that the whole process would take two years and they are determined to make sure no member loses money.
Some members held protests in Nairobi questioning the source of funds for the refunds while at the same time decrying the strategy by the beleaguered founder to compensate in phases. Mr Ngare however said that the Sacco is selling some of their assets and also pursuing debtors to raise money for the refunds.
Ekeza Sacco came into the limelight for the wrong reasons when the management was accused of embezzling over KES 2 billion shillings, members not being able to access their own deposits, some branches of the Sacco closing their offices, and a red flag from the Sacco Regulatory Authority.