Unaitas Sacco is the latest to face financial constraints owing to mismanagement and fraud.
A few years ago, the Sacco was hacked and millions were stolen. Investigations later showed that the hacks were an inside job by the Sacco’s management.
A client wrote to cnyakundi.com about his inability to sell his shares and exit the institution.
The struggling Unaitas has made it hard for those that have saved with it to exit. They’ve introduced a clause where one is supposed to find a suitable client that banks with them to sell their shares to.
“I would like to close my account but I can’t do so because I have shares worth KES. 7,000. Please advise me on the way forward since I have not been able to find someone to transfer the shares to. Is there any other way to go about it?”, a frustrated client wrote Unaitas but received no response.
The same client had inquired why the interest charged on a loan he took rose from 2.5% to 10%.
Unaitas is the same Saco which had bigger dreams of becoming a bank, but some directors feared the strict and stringen scrutiny that comes with a banking license. They are guilty of internal fraud. – Writer and editor
“I’m still not satisfied with the amount of interest charged on my salary advance. In the application form, the interest charge is indicated as 2.5% which translates to Kshs. 625. I don’t understand how it is coming to Kshs. 2,500 AS IF I BORROWED KSHS. 100,000”, he pushed after an unsatisfactory explanation from the Unaitas customer relations officer.
After more unsatisfactory explanations, the client asked to be refunded his money. This is a broad day robbery! I don’t see any misunderstanding here. The loan form I signed is well indicated that the interest is charged at 2.5%. Then how come you charged me 10%? How is that my problem? Furthermore, 2.5% was what I was also told verbally when I enquired. This shows that you give false information to woo customers for your syndicate! This is professional negligence and also taking your customers for granted. For instance, if I was told the truth that I will be charged the Kshs. 2,500, I could have decided to wait for the salary instead of paying so heavily within such a short period! The Kshs. 1,875 (7.5% extra) you stole from me may be very little for you people but it means alot for other people, me included. As you saw in my previous email, I instructed your loan officer (and I don’t know why he is not responding to my enquiries) to facilitate so that you can clear the loan because I would not want to breach any contract. Likewise, I also expect your organization to act in good faith and follow any valid contracts to the letter. I DEMAND FOR THE REFUND OF THE EXTRA MONEY CHARGED!”, he wrote
Unaitas has made it hard for clients to leave the Sacco. Many are now calling on the authorities to look into the goings-on in the financial institution.
Where will poor Kenyans run to for help?
Saccos, once the safest and easiest saving institutions; are now the den of conmen and swindlers.
Many Kenyans have lost their life savings in poorly managed Saccos. Saccos have become the looters’ den where the management and board have colluded to get rich quick.
There’s no excuse for this, SASRA and other bodies must come to the aid of poor Kenyans who believed in the Savings and Cooperative movement, but who are now losing their savings at an alarming rate.
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