The Commissioner for Co-operative Development has ordered a formal inquiry into the affairs of Qona Savings and Credit Cooperative Society Limited (Qona SACCO), following a request by its members. The investigation, which will examine the society’s management, governance, and financial operations, is to be conducted under Kenya’s Co-operative Societies Act (Cap. 490).
In a gazette notice dated 29th September 2025, Commissioner David K. Obonyo appointed a three-member inquiry team to look into the SACCO’s by-laws, financial conditions, and the conduct of both current and past management committees. The move follows growing concern among members over alleged mismanagement and irregularities within the society.
According to the notice, the appointed inquiry officers include Silars Okoth Dede, Assistant Director of Co-operative Audit at Nairobi Headquarters; Benjamin K. Rop, Principal Co-operative Officer; and Michael Kangethe, Senior Information Technology Officer.
The team has been directed to carry out the investigation within 15 days of the notice’s publication and to report their findings thereafter. Compliance with Sections 58 and 73 of the Co-operative Societies Act, which empower the Commissioner to initiate inquiries where there is sufficient cause.
Commissioner Obonyo emphasized that the process will ensure transparency and protect members’ interests, reminding officers and members that the Co-operative Societies Act outlines specific provisions on the costs of inquiry (Section 60), recovery of expenses, and offences and surcharges (Sections 73 and 94). These provisions allow the government to recover the cost of the investigation from the society if wrongdoing is established.
The decision to investigate Qona SACCO comes amid heightened scrutiny of Kenya’s cooperative sector, which holds billions in member deposits and plays a vital role in financing small and medium enterprises (SMEs). SACCOs are a cornerstone of Kenya’s financial inclusion model, providing affordable credit and savings opportunities to millions.
However, in recent years, several SACCOs have come under investigation for governance lapses, misappropriation of funds, and weak internal controls. The inquiry into Qona Savings and Credit Cooperative Society reflects the government’s continued efforts to strengthen oversight and restore confidence in the cooperative movement.
Experts say such inquiries are essential for protecting depositors and promoting accountability within the cooperative sector. “When members lose trust in their SACCOs, it affects the entire savings culture in Kenya,” said a Nairobi-based cooperative analyst. “This inquiry sends a strong message that the government is serious about safeguarding member interests.”
The Co-operative Societies Act (Cap. 490) provides the legal basis for inquiries into SACCOs when there are credible complaints or evidence of malpractice. Section 58 grants the Commissioner for Co-operative Development the power to appoint qualified officers to investigate a society’s affairs, while Section 73 outlines the penalties and surcharges that can be imposed on officers found culpable.
If the inquiry finds evidence of mismanagement or misuse of funds, the implicated officials may face surcharges, suspension, or even prosecution under Kenyan law. The Commissioner’s office has also reminded cooperative members that inquiries are not punitive by default but aim to restore order and ensure compliance.
Kenya’s SACCO sub-sector remains one of the most vibrant in Africa, with over 14 million members and assets exceeding KSh 800 billion. Yet the sector’s rapid growth has exposed governance weaknesses and raised calls for stronger regulation, especially in auditing, digital compliance, and board oversight.
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