Kencom Sacco receives a billion shilling Demand Note from KCB

The Economic Crimes Investigators have stormed into the fray to probe financial operations at Kencom Sacco in an efforts to unearth the truth about the Sacco’s highly questionable deals

By The Weekly Vision Investigations Desk

PART TWO

The embattled and financially crippled Kencom Savings and Credit Cooperative (Sacco) Sacco’s parent bank, the Kenya Commercial Bank – KCB Bank is now demanding more than Kshs. 1, 093, 255, 216.00 billion after the Sacco failed to repay more than KShs. 400 million arrears after being given several notices.

This fresh development is happening when our investigations revealed that the Sacco lost millions of shillings in a deal gone sour while trying to get a loan of more than KShs. 11.5 billion from a questionable German company through brokers of highly questionable backgrounds through a Nairobi based law firm.

KCB is demanding Ksh. 1,093,255,216.00 billion from the Sacco

The Sacco had sought Euros. 90 million, equivalent to Kshs. 11,520,000,000 billion to try and salvage itself from some crippling financial woes. The German company involved is known as KINPRO Holdings GmbH fronted by a German character known as Valery Konig who signed the multi-billion shillings loan on that company’s behalf while the Kencom Chief Executive Officer (CEO) Roselyne Oddah Atema signed on behalf of the Sacco. (For details see separate our story on this matter.)

 It has also since seen the entry of the Economic Crimes Investigators storming into the fray to probe the financial operations at Kencom Sacco to unearth the truth about the Sacco’s highly questionable deals which the Directorate of Criminal Investigations (DCI) is aware of but has done nothing about it.

Documents in our possession show KCB demanding its money back, a clear indication that Kencom Sacco has over the years been unable to service its loan hence the demand for the re-payment of the money within 40 days according to the law. According to a letter addressed to management, the bank is demanding the re-payment of arrears totalling Kshs. 449,023,177.00 M within the stipulated or above mentioned days or else face legal action.

The letter to Kencom Sacco’s chiefs delivered by registered post in June this year in part reads: “40 days charge statutory demand notice pursuant to Section 96(2) of the Land Act No. 6 of 2012 Laws of Kenya (THE ACT) in respect of charge over titles No. Mavoko Town Block 3/2326 and Mavoko town Block 3/2327 properties.”

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https://theweeklyvision.net/2021/08/19/how-kencom-saccos-multi-billion-shillings-scandal-unfolded/

It goes on: “This is in relation to Debenture dated 28, November 2008, supplemental Debenture dated 18th, January 201 and second supplemental Debenture dated 9th September 2016 in Kencom Sacco Society Ltd charge or borrower.”

The letter goes to detail that the arrears of the money loaned to the Sacco had accumulated to more than Kshs. 449,023,177 million after the society failed to service its loan with KCB even after being served with notices to clear the owed money.

“Whereas you (Kencom Sacco) were served with a statutory notice dated February 10th, 2021 to settle outstanding arrears then at Kshs. 366, 547, 498.34 million you failed to do so the failure of which the Chargee will be forced to sell the above-mentioned properties to recover its money as per the law,” says part of the letter.

It documents that Sacco’s failure to settle the more than Kshs. 400 million at the last notice dated June 8th, 2021 the money had since accumulated to a colossal of more than Ksh. 1,093,255,498.34 billion as of June 8th, 2021 and skyrocketing daily.

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