The government through Sacco Societies Regulation Authority (SASRA) has ordered the immediate closure of Good Life Sacco Limited over what it termed as poor management of investors funds.
“I cancel the registration and order that it be liquidated. Any person, aggrieved may within thirty (30) days of publication in the Kenya Gazette appeal to the Cabinet Secretary against this order,” SASRA Commissioner for Cooperative Development Ms Mary Mungai said.
Ms Mungai’s orders came following a recent audit report conducted by the Co-operatives ministry which revealed that Good Life Sacco had breached all regulations on handling member funds amounting to Sh 1 billion in savings.
Mungai further ascertained that the society’s license had been revoked and invited members to file claims within the next 30 days with Johnson Njoroge and Gerald Mwai, who have been appointed as liquidators.
She however directed the duo liquidators to seize all assets belonging to Good Life Sacco including all financial records, a move geared at ending the Sacco’s operations within the next 12 months.
According to Obadiah Maina the founder of Good Life Sacco, the Sacco had earlier on experienced unusual withdrawals which greatly affected the Sacco’s cash flow.
In September, 2015 SASRA blacklisted Good Life Sacco Society but the entity defied order and continued with its operations.
This was after it was accused of taking deposits from the public yet they are not registered to do so.
Confirmed reports reveal that Mr. Maina rose from a Sh 12,000 IT tutor job to founding the multi-million shillings Sacco in November 2012 with the help of some of his close friends.
In six months, Good Life Sacco had registered 3,000 members and by 2015, it had 7,000 members and was planning to convert into a bank.