Ekeza Sacco withdraws case to shut it down following out of court settlement
NAIROBI, Kenya, May 8 – Controversial Ekeza Sacco has withdrawn a case it had filed in April imputing the decision by Commissioner for Cooperative Development to shut it over failure to comply with the set by laws.
Judge Pauline Nyamweya today marked the matter as withdrawn after the Sacco informed the court that an agreement has been reached with the state agency.
The Cooperative Development had ordered its closure for failing to operate independently from another firm known as Gakuyo Real Estate.
The Sacco’s operations were also halted in at least three counties despite being allowed to run in Nairobi ‘s Starehe sub-county.
The court was told that Ekeza had recruited 62,000 members contrary to its own bylaws which stated it targetted 338 people.
Of its total membership, 5000 individuals are based outside Nairobi following its decision to open offices in Murang’a, Nyeri, Kiambu, Nakuru and Mombasa Counties.
Ekeza sued commissioner Mary Mungai for taking the action without giving it an opportunity to respond to the alleged breaches. At the time of its closure, Ekeza had collected more than Sh 2billion in savings and given more than the same amount in loans.