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Dark Clouds Hang Over KUSCCO Management, Acting CEO Munene Credentials Questioned

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There seems to be no end to boardroom wars at the Kenya Union of Savings and Credit Society (KUSCCO) following a change of guard in which former CEO George Ototo was irregularly replaced by Arnold Munene in an acting capacity. Mr. Munene’s appointment has been challenged by a non-governmental organisation known as the Concerned Citizen Alliance.

In a letter dated January 25th (ref. 10/020/CCK/2024) addressed to the KUSCCO Managing Director/CEO, signed by Peter Agoro and Mibei Rotich, and copied to the KUSCCO chairman and board members, the letter captioned “Public participation in illegal deposit taking business and your irregular appointment as the acting Managing Director.” The Concerned Citizen Alliance reveals that they have received complaints from members of the public and KUSCCO members over allegations of illegal deposit taking in blatant disregard of the law.

The Alliance further claimed that, by being the Nairobi regional manager, Munene has been working closely with Mr. Ototo and that whatever the rot that has allegedly been at the helm of the KUSCCO management, Munene was part and parcel of the rot. The letter reads, “You cannot carry yourself as the angel of light and reforms while you were part of the rot-bedevilling KUSCCO.

While relying on Section 31 of the KUSCCO by-laws, it has been noted that the board of directors shall exercise the prudence and diligence of ordinary men and women and shall be held jointly and severally liable for any losses sustained through any of their acts that are contrary to the act, according to part of the letter. The letter further claims that KUSCCO has been engaged in the illegal business of deposit-taking without being licenced as required by the Sacco’s Society Act No. 40 of 2008.

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On Munene’s appointment as acting CEO, the letter reads, “We are further aware that you were irregularly installed as the group managing director with effect from January 15, 2023. Your coronation as acting managing director was a well-crafted scheme to serve the vested interests of cartels that are hell-bent on defrauding KUSCCO members of their hard-earned money.”.

According to the letter, KUSCCO members are worried and concerned about Munene’s qualifications, which they claim should be investigated. The letter reads, “Those KUSCCO members whose interests we are advocating for are deeply concerned about your academic credentials and your ability to lead them.”. The members further divulged that KUSCCO by-laws state that the current financial manager or any person at a senior managerial level with the requisite qualification should take charge in an acting capacity until a substantive managing director is appointed.

According to information extracted from KUSCCO’s website, a person holding the position of managing director must be a holder of a Masters’s Degree (CPAK) and knowledgeable in financial law. It is important to note that the acting MD, Munene, does not possess any of the above-mentioned credentials. During Munene’s appointment, Mr Langat, who is associated with Imarisha Sacco, which has been linked to several scandals, was also appointed as KUSCCO’s national chairman, against the will of the majority of members. The letter reads, “The board members were arm-twisted by eternal forces determined to defraud the members of their hard-earned resources.”.

It was during Langat’s tenure at Imarisha Sacco that the board awarded themselves hefty perks against a resolution passed during the Sacco’s annual general meeting (AGM).

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It was also during Langat’s tenure that queries were raised over a Ksh. 7.5 million petty cash voucher and how the construction of Imarisha Kebo Plaza was used to loot millions of shillings from the Sacco. Members now wonder that with an active case at the Ethics and Anti-Corruption Commission, board members could be arm-twisted to accept Mr Langat as the National Chairman of KUSCCO before he clears with EACC and is given a clean bill of health.

Still on the ongoing investigations by EACC against Mr Langat and Imarisha Sacco, the letter further reads, “While we are aware that KUSCCO is not a government entity, we are aware that it is regulated by the government just like any other entity.It is of interest to the people of Kenya and even KUSCCO members that their leaders should be men and women of integrity.”.

While pushing for the removal or resignation of Munene as the acting managing director, the letter reads, “We therefore look forward to your prompt response within seven working days of the receipt of this letter, failing which we will presume that the information that we have is authentic and credible to be taken to other relevant government bodies and agencies for further action.”.

On the MD’s failure to resign or the board’s failure to revoke Munene’s appointment as acting MD, the letter reveals their next action; it reads, “We shall further invoke Article 37 of the Constitution and organise the mother of all protests in your office to demand your immediate resignation.”.

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On Munene’s alleged involvement in corrupt deals as Nairobi Branch manager, the letter demands, “We shall further demand your lifestyle audit as KUSCCO members have all the reasons that your wealth could be the proceeds of fraudulent activities at KUSCCO.”


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