Defunct Sacco Paying Off Savings

The Co-operatives office in Kisumu has started disbursing Sh. 50 million to the over 900 members of the defunct Kisumu Municipal Teachers (KIMUTE) Fosa Sacco Society that went into liquidation in 2016.

Kenya National Union of Teachers (KNUT) Kisumu City Branch Executive Secretary David Obuon says members of the Sacco were relieved to start getting back their savings.

He thanked the second liquidator and the Commissions of Co-operatives’ for fast tracking the process as members of KIMUTE began signing for their refunds.

Obuon says the Sacco was placed under liquidation in the year 2016 after years of mismanagement.
He appealed to teachers who were members of the once vibrant Sacco in the lakeside city to come out and pursue their pay.

Obuon urged every member and even the next of kin of members who have died to visit the said office at Huduma Centre to get their pay.

Speaking to the press in Kisumu on Tuesday, Obuon says the Sacco that was started way back in 1975 had the potential but along the way was looted by the management.

Obuon noted that many teachers lost fortunes in the Sacco while others died along the way as they fought to get back their savings without any success.

According to records, the Sacco had deposits in excess of Sh. 52 million at the time of closure with about 635 dormant and 282 active members.

In 2016, members of the Sacco defaulted on Sh. 9.1 million loans for nine months.