Petitioners seek Sh5bn in suit against Kenya Bankers SACCO leadership
NAIROBI, Kenya, Nov 10 - Two members of the Kenya Bankers SACCO Society Limited have filed a constitutional petition at the High Court in Nairobi seeking Kenya breaking news | Kenya news today |..
✨ Key Highlights
Two members of the Kenya Bankers SACCO Society Limited have filed a constitutional petition in the High Court in Nairobi, accusing the SACCO's leadership of large-scale fraud, mismanagement, and abuse of office, seeking Sh5 billion in compensation.
- Petitioners Davies Mbaabu Kajogu and Joakim Simiyu allege financial irregularities caused over Sh2.9 billion in member equity losses.
- The petition names the Kenya Bankers SACCO Society, KUSCCO Limited, SASRA, Kreston KM & Company LLP, the Commissioner of Co-operatives, and the Attorney General as respondents.
- Accusations against leadership, including Chairperson Vincent Chisaka and CEO Lucas Ondong Otieno, include concealing a Sh200 million loan, diverting member savings, and unapproved investments like the Shaba Housing Project leading to Sh389 million in impairments.
- A 2018 SASRA inspection report reportedly uncovered Sh270 million in fraudulent interest income and Sh141 million in under-provisioned loans.
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High Court Nullifies Ruto's Executive Order; New Bill Targets Foreign Firms; SACCO and Telco Face Legal Actions - November 2025
The High Court of Kenya has nullified President William Ruto's Executive Order No. 3 of 2024, which concerned the management of State corporations. The court declared sections of the State Corporations Act unconstitutional for encroaching on the powers of the Public Service Commission (PSC). In the legislative branch, a new Bill was introduced in the National Assembly to compel foreign companies to significantly increase local sourcing of goods, services, and labor. In other legal matters, two members of the Kenya Bankers SACCO Society Limited filed a constitutional petition seeking Sh5 billion in compensation, accusing the leadership of large-scale fraud and mismanagement. Additionally, the Office of the Data Protection Commissioner (ODPC) ordered Liquid Telecommunications Kenya Ltd to pay Sh700,000 for unlawfully processing personal data, marking a significant action under Kenya’s Data Protection Act, 2019.
