Regulatory body initiates the retrieval of Sh550 million misplaced funds at Afya Sacco
In a shocking turn of events, the Afya Sacco Society Ltd, a Kenyan savings and credit cooperative, has found itself embroiled in a financial scandal involving the misappropriation of over Sh500 million.
The Sacco Societies Regulatory Authority (Sasra) has determined that there are reasonable and probable grounds to believe that the deposit-taking Sacco business of the society has been conducted in a manner detrimental to, and not in the best interests of the Sacco members.
The misappropriated funds were siphoned through excess allowances associated with Sacco activities, either through cash or cheques. Specifically, between January 2024 and July 2024, Sh100 million was withdrawn from the Sacco's front office (Fosa) and remained unaccounted for in the transactions register, while Sh90 million was withdrawn from the Sacco's back office (Bosa) but remained unaccounted for in the transactions register.
Additionally, between February 2022 and August 2024, Sh360.51 million was paid out in cash with no evidence of accounting[1].
In response, Sasra initiated actions to recover part of the missing funds. Sasra also issued a letter dated October 31, 2024, detailing these financial irregularities, which contributed to recent financial turmoil within the Sacco and unrest among members, including demands for the removal of top management[1]. The recovery efforts by Sasra are ongoing as of August 2025[2][3].
The Sacco society has been accused of misappropriating over Sh500 million. If one has served as a member of the supervisory committee, the recovery will be at a fixed monthly rate of Sh52,500 from February 2022 to the date the letter was drafted.
The Sacco society's cash office has been directed to close, and the entity is under administrative and heightened supervision by Sasra, accompanied by cease-and-desist orders. The Sacco's chief executive and the internal auditor have been directed to prepare a report within three months from the date the letter was drafted, providing an account of the Sh360.51 million.
This unaccounted-for money from the front office was also withdrawn in Sh10 million batches through cheques, while Sh10 million batches of money were withdrawn from the Sacco's back office through cheques between January 2024 and July 2024.
The actions taken on the Sacco are due to the entity operating contrary to the provisions of the Sacco Societies Act and relevant Regulations. The Sacco's board members have been directed to recover all unprocedural and irregular payments made to them at a fixed monthly rate of Sh67,515.
The financial irregularities within the Afya Sacco Society Ltd have caused significant unrest among its members and have raised concerns about the governance and management of the Sacco. The ongoing recovery efforts and the heightened supervision by Sasra are expected to bring transparency and accountability to the Sacco's operations and restore the confidence of its members.
[1] The Star, "Afya Sacco Society Ltd: Sasra orders recovery of Sh500 million," October 31, 2024. [2] The Standard, "Afya Sacco Society Ltd: Sasra recovery efforts ongoing," August 15, 2025. [3] Business Daily Africa, "Afya Sacco Society Ltd: Sasra supervision continues," August 20, 2025.
- The unaccounted-for funds at Afya Sacco Society Ltd, totaling over Sh500 million, have caused a major financial scandal, impacting the business regionally.
- In response to this controversy, the Sacco Societies Regulatory Authority (Sasra) has initiated recovery efforts, as well as enacted administrative supervision and cease-and-desist orders for the Sacco society.
- The misappropriated funds were mostly withdrawn from the Sacco's front office and back office in large sums of Sh10 million through cash and cheques, raising doubts about the Sacco's management and governance.
- Alongside the recovery efforts, general-news media outlets have widely covered the case, which has led to unrest among Sacco members demanding change in top management, raising concerns about politics within the organization and its impact on the health of the business.
