The Kenyan government has launched a formal inquiry into Afya Savings and Credit Co-operative Society Limited (Afya SACCO), one of the country’s long-standing financial cooperatives serving healthcare workers, amid concerns over governance, financial management, and adherence to the Co-operative Societies Act.
According to a Kenya Gazette Notice No. 15139, issued on 9th October 2025, the Commissioner for Co-operative Development, David K. Obonyo, authorized the investigation under Section 58 of the Co-operative Societies Act (Cap. 490). The order mandates a detailed review of Afya SACCO’s by-laws, financial operations, and the conduct of both current and past management committees.
The inquiry team, led by Peter W. Kiama, Deputy Commissioner for Co-operative Development, and Stephen Kiritu Mwangi, Assistant Commissioner, both based at the Nairobi Headquarters, has been given 21 days from the date of the notice to commence the investigation and report its findings.
The Gazette notice outlines four specific areas of focus: The by-laws, Working and Financial Conditions of and, the conduct of present or past management committee of Afya Savings and Credit Co-operative Society Limited and in accordance with section 58 as read together with section 73 of the Co-operative Societies Act, Cap. 490, Laws of Kenya.
Enforcement of relevant provisions under sections 58 and 73 of the Co-operative Societies Act, which provide legal grounds for inquiry and potential surcharges against responsible officers if mismanagement is proven.
The Commissioner’s directive also draws attention to sections governing cost of inquiry, recovery of expenses, offences, and surcharges, indicating that individuals found culpable could face financial penalties or legal action.
Afya SACCO, established in 1981, is among Kenya’s most prominent co-operatives serving health professionals. It has thousands of members across hospitals and clinics nationwide. The decision to open an inquiry signals growing concern within the Ministry of Co-operatives and Micro, Small and Medium Enterprises Development about governance lapses that have affected several SACCOS in recent years.
While the Gazette notice does not specify the exact complaints or financial irregularities prompting the probe, such inquiries typically arise from member petitions, auditor reports, or alleged breaches of cooperative laws.
In Kenya, SACCOS play a crucial role in providing affordable credit to members and promoting a culture of savings. However, several co-operatives have recently come under scrutiny for embezzlement, weak oversight, and poor financial reporting, prompting regulators to take tougher oversight measures.
The inquiry into Afya SACCO underscores a broader government effort to strengthen accountability and restore trust in the cooperative movement, which collectively controls over KSh 1 trillion in assets.
Under the Co-operative Societies Act, the Commissioner has the authority to order a statutory inquiry if there are reasonable grounds to believe that a society is being mismanaged or operating contrary to its stated objectives.
Officials involved in the inquiry will have the power to summon documents, question officers, and review financial records. Depending on the findings, the Commissioner may impose surcharges, refer matters to law enforcement, or recommend restructuring of the society’s management.
The co-operative movement remains a pillar of Kenya’s financial inclusion model, serving millions who might otherwise lack access to conventional banking.
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