Afya Sacco, once a towering figure in the financial landscape, is now teetering on the edge of oblivion, its reputation shattered, its finances in ruins. What was once a symbol of trust and prosperity for its millions of members has become a cautionary tale of greed, mismanagement, and betrayal.
For years, Afya Sacco had been a beacon of financial security for its members. With billions of shillings in savings, it offered a wide range of loans, from emergency cash to education and development funds. But as the years passed, cracks began to form behind the scenes, slowly but surely. What seemed like small missteps soon became a full-blown crisis that has left the institution on the brink of collapse.
At the heart of this disaster lie the former CEO, Peter Gisemba, and his deputy, Caroline Mugwan’ga. They have since been sacked, but not before their alleged involvement in a massive scam that saw the Sacco lose over Kshs. 1.5 billion in the last two years alone. But their sacking has done little to quell the damage. Trust has been broken, and the very foundation of the Sacco has been shaken.
As whispers of the scandal spread, it became apparent that Gisemba’s rise to power was no accident. A former Chief Internal Auditor, his promotion to CEO seemed to many a dangerous conflict of interest. But that wasn’t the only troubling detail. He had risen under the wing of Beatrice Mogire, the chairperson, a figure whose influence extended far beyond her formal role. Together, they had seemingly created a protective bubble around themselves—one that shielded them from scrutiny and allowed the rot to fester undisturbed.
The situation within the Sacco has become untenable. For the first time in its history, members are finding themselves unable to access vital loans, and many have begun withdrawing their savings in a desperate bid to protect their hard-earned money. The cash flow has dried up, salaries have been delayed for months, and staff morale has reached rock bottom. Across the country, employees are resigning in droves, unable to withstand the ever-growing pressure of working for an institution that seems to be crumbling from within.
The board, too, has become embroiled in the scandal. Allegations of financial mismanagement, corruption, and even bribery have surfaced, with claims that certain members of the board were involved in shielding Gisemba and his deputies from the fallout. According to a senior manager who spoke off the record, some board members even had their hands in the cookie jar, siphoning off millions in unapproved payments.
The once-proud Sacco is now a hollow shell of its former self. The tragic irony is that the crisis began long before Gisemba’s tenure. The seeds of destruction were sown when former CEO Felix Ndoi was accused of making off with Kshs. 350 million, and the leadership vacuum created in the aftermath opened the door for more corruption.
Afya Sacco’s fall has been swift and dramatic. Now, with the financial institution on the brink of collapse, board members are left scrambling for a solution. The upcoming Annual Delegates Conference set to take place in Nairobi later this month, looms ominously on the horizon. There, the board will face the uncomfortable task of explaining the disaster to the very members whose trust they’ve betrayed.
As one board member, speaking anonymously, put it: “We’ve reached a point where the only thing we can do is hope the storm passes. But the damage may be irreparable. The members’ confidence is shattered, and once it’s gone, there’s no coming back.”
In the quiet corridors of Afya Sacco’s headquarters, the tension is palpable. The fate of the institution hangs in the balance. But for those who have watched the rise and fall of this once-mighty financial institution, the real tragedy lies not just in the loss of money but in the erosion of trust—the very thing that an institution like Afya Sacco was built on.
As the storm rages on, it remains to be seen whether the giant can be saved or if its collapse is inevitable. One thing is certain, however: the story of Afya Sacco will be remembered as a stark reminder of how quickly a financial empire can crumble when greed and mismanagement take root.
