Urithi Sacco is Financial Distress

Family Bank to auction Sacco’s Prime Property over Bad Debt

An auctioneer firm Antique Auctions is set to auction off a property owned by a society in Muranga County, the property sits on L.R 11486 (I.R 20122) owned by members of Urithi Housing Co-operative Society over an outstanding loan of Ksh. 600m acquired from Family bank of Kenya.

The loan has not been serviced for years and the bank is said to have taken the initiative of auctioning off a property whose papers were deposited with the bank as collateral, to safeguard the banks interests.

The current management of Urithi Housing Co-oparative Society seems to be an able to pay off the loan and the auctioneer has given the management of the society a 45 days’ notice to pay up or else face the auctioneers hammer.

Documents in our possession indicate that the current management of the society single handedly committed the society in purchasing the said property in Muranga County without the approval of majority of the members. They went ahead and approached Family Bank for the Ksh. 600m financing knowing well that the Sacco was in the read financially.

Senior managers who include Chairman Mr. Samuel Mwaniki, treasure Daniel Kamau, and CEO Daniel Gachanja are said to have approached Family bank for the controversial loan that could now land them in court for misuse of member’s finances. The society is said to be facing similar problems with their Nakuru and Thika properties.