How Kencom Sacco’s multi-billion shillings scandal unfolded

KCB Group CEO Joshua Oigara

It has since emerged that these unsanctioned multi-billion shillings “loan” was to facilitate investments into the construction of multi-billion shillings residential housing units on land reportedly owned by Kencom Sacco at Nairobi’s upscale Runda estate

By The Weekly Vision Investigative Desk

Troubling questions have erupted at the Kencom Savings and Credit Cooperative (Sacco) society over a sour deal involving more than Kshs. 11.5 billion (Euros 90 million) in which the Sacco is estimated to have lost millions of shillings as “paperwork fees” to streetwise scammers who delivered zero to the Sacco in return.

The scandal is documented in a fictitious agreement signed by Sacco’s CEO Ms Atema on behalf of the society and a German national called Valery Konig dated February 1st 2021 numbered 30012021.01 and headed “Partnership Agreement on Investment and Financial Cooperation.”

Sacco CEO Ms Atema signed the deal with yet another questionable foreign company called KINPRO Holding GmbH to secure a loan for the Sacco amounting to Euros 90,000,000 million, equivalent to Kshs. 11,520,000,000 billion at the current exchange rates

The trouble started in January this year when Sacco’s Chief Executive Officer (CEO) Roselyne Oddah Atema signed the deal with yet another questionable foreign company called KINPRO Holding GmbH to secure a loan for the Sacco amounting to Euros 90,000,000 million, equivalent to Kshs. 11,520,000,000 billion at the current exchange rates.

Kencom Sacco logo

According to the documents in our possession, the KINPRO company was registered a few years ago (March 2019) in the German city of Stuttgart, registration number HRB 246169. The company address in Germany is Geschwister-Scholl-Str. 20 with its bankers Deutsche Bank. DB Private – und Firmenkundenbank AG, their bank account No. DE35 6007 0024 01419365 (EUR) and SWIFT CODE DEUT DEDB STG while the bank officer is supposedly called Christofp Mielitz.

The contract with Kencom Sacco was signed by Mr Konig of Germany passport number C8775G2FC, and as mentioned above, the deal involved Euros. 90,000,000.00M. It has since emerged that this unsanctioned multi-billion shillings loan was to facilitate investments into the construction of multi-billion shillings residential housing units on land reportedly owned by Kencom Sacco at Nairobi’s upscale Runda estate.

As this happens, Kecom Sacco has since 2017 been involved in scandals with members, the majority of whom are employees of Kenya Commercial Bank and National Bank of Kenya struggle to access loans on their savings, supposed to be three times their savings as per the law, they have to wait for months on end for emergency loans or development loans or merely simply get nothing, yet the powerful KCB CEO Joseph Oigara can get up to Kshs. 100 million loans at a whisper to the Sacco CEO Atema.

It is also emerging that some of the top regulatory authority and ministry bosses have been compromised to look aside as the problem they are fully aware of explodes to the surface, from KCB CEO Mr Joshua Ogara who was made aware of the scandal through email from The Weekly Vision months ago. Ms Atema refused to answer more queries only saying “We haven’t paid any 18M out to anyone. Please confirm your details” by WhatsApp messenger sent to The Weekly Vision on the 13th May 2021.

The cheque in question

The Kencom Sacco CEO Ms Atema signed the agreement penning her passport No. was CK **617 with the Sacco’s bank accounts being at the Cooperative Bank of Kenya Hilton hotel branch in Nairobi No. 01120580007*** and SWIFT code KC00KE** – all these to facilitate financial transaction without the authority of Kecom Sacco members nor its Central Management Committee (CMC).

The deal engineered and executed by shadowy brokers was sealed before a Nairobi-based advocates company whose facilitation and brokerage fees are documented as Equity Bank’s account No. 0470293213*** Moi Avenue branch.

This account alone was to receive more than Kshs. 438,750,000 (four hundred thirty-eight million seven fifty) million through Swift/RTG application form dated 15th March 2021 as consultation fees under the orders of Ms Atema, the chairman and one member.

The cheque in question is No. 000005 drawable from the Sacco’s Cooperative Bank Hilton Branch account signed by Atema ID No. 133002**, Alemus Saparii ID No. 115305** and Robley Ngoje with ID No. 126028** thus raising more queries than answers.

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