By Benson Nyangweso
Afya Sacco, one of Kenya’s largest deposit-taking savings and credit co-operatives, is facing one of the gravest crises in its history, following a probe by the Sacco Societies Regulatory Authority (SASRA) into suspected financial irregularities, criminal charges against former senior officials, and a court ruling exposing flaws in its disciplinary processes.
The developments have cast a spotlight on the governance of the healthcare workers’ Sacco, with investigators examining transactions worth hundreds of millions of shillings while members await answers over the safety of their savings.
The troubles became public on 9 October 2025, when the Commissioner for Co-operative Development signed a Gazette Notice ordering a formal inquiry into the affairs of Afya Sacco. The investigation, announced publicly on 22 October 2025, is examining the Sacco’s financial position, governance systems and the conduct of both current and former management officials, following allegations of financial mismanagement and possible breaches of the Co-operative Societies Act.
Investigators are reported to be scrutinising transactions estimated at about KSh550 million, including alleged undocumented withdrawals, irregular payments and inflated allowances made between 2022 and 2024. However, no court has determined liability over the allegations, and the inquiry remains ongoing.
Barely two months later, the scandal deepened. On 21 December 2025, three former Afya Sacco officials were arraigned before the Milimani Law Courts and charged with conspiring to defraud the Sacco of KSh40.17 million through alleged fraudulent deposits and withdrawals carried out between 20 April 2021 and 31 January 2025.
The accused, former Afya Micro Credit Activities (AMCA) Manager Evans Mung’ahu Kola, Fredrick Kuya Libako, and Mumina Mutinda Ingu’i, denied the charges of conspiracy to defraud, stealing, and money laundering. Prosecutors allege the three manipulated Front Office Service Activity (FOSA) accounts to process fictitious deposits and withdrawals, causing substantial financial losses to the Sacco. Their trial is ongoing, and they remain innocent unless proven guilty by a court.
The institution suffered a further setback on 16 March 2026, when the Employment and Labour Relations Court ruled that the dismissal of its former General Manager was unfair and unlawful.
Justice Benard Manani awarded the former executive KSh5.1 million after finding that Afya Sacco had failed to prove allegations of gross negligence and had breached fair disciplinary procedures. The court held that the Sacco had introduced new allegations during the disciplinary process without proper notice, and criticised the manner in which the dismissal was handled.
Taken together, the regulatory inquiry, criminal prosecution and adverse court ruling paint a troubling picture of an institution grappling with serious governance challenges. The government inquiry is expected to determine whether additional current or former officials should face administrative or legal action, while the criminal case will establish whether the accused bear criminal responsibility for the alleged KSh40 million fraud.
For thousands of members and other healthcare professionals who rely on Afya Sacco for savings and credit services, the outcome of these processes could prove critical in restoring confidence in one of Kenya’s most prominent co-operative societies.
