Panic and anger gripped the annual general meeting of a co-operative society in Kitui after reports emerged that former board directors had hired goons to attack members and cause chaos at the event. A contingent of armed police officers secured Kitui’s Multipurpose Training Centre, the venue of Bestrock Savings and Credit Co-operative Society Limited’s AGM, on Friday to prevent troublemakers from disrupting proceedings and to manage any potential unrest.
The Sacco’s chairman, Francis Kithae, addressing a vigilant crowd, claimed that former directors—who had defaulted on loans amounting to millions of shillings—had orchestrated the plot to tarnish the current management’s reputation and create division among members.
A visibly furious Kithae stated that the Sacco, which has 5,612 members, had taken decisive action by invoking Paragraph 9 (d) of the Code of Conduct in the Third Schedule of the Sacco Act 2020. As a result, the names of the defaulters had been forwarded to the Co-operatives Tribunal Court.
“Court summons were issued to the first nine defaulters. It is unfortunate that instead of repaying their loans, they have devised schemes to intimidate, blackmail, and instil fear. This is unacceptable, and we will not be cowed,” said Kithae, a former senior education officer. He warned the former officials against resorting to lawlessness, stating that any such actions would be met with appropriate consequences.
Financial Growth and Commitment to Members
Kithae reported that the Sacco’s share capital had grown by 13 per cent to KSh35,730,593, with loan disbursements reaching KSh252,497,897 this year, compared to KSh170,910,926 previously. “I sincerely appreciate your support and commitment. We look forward to serving you even better in the future,” he added.
County Executive Member for Trade, Industry, MSMEs, Innovation, and Co-operatives, Rose Mutuku, who was the chief guest, urged the board of directors to uphold their fiduciary duty by ensuring that members’ resources were utilised for their benefit rather than for personal enrichment.
Ms Mutuku emphasised that it is a violation of the Co-operative Societies Act Cap 490 and the Sacco Societies Act No.14 of 2008 for directors to grant themselves loans on more favourable terms than those available to ordinary members.
“You must lead by example by ensuring that both your loans and those of your staff are properly serviced. Remember, innovation, adaptability, and a strong commitment to members will be key to sustained growth,” she advised.
Accompanied by her Chief Officer, Paul Ngei, Mutuku announced that Governor Julius Malombe’s administration is set to host a two-day local investors’ sensitisation forum at the Kitui County Aggregation and Industrial Park in Kanyonyoo on 13th and 14th March.
She noted that the forum would bring together nearly 2,000 local investors, MSMEs, and key stakeholders to explore investment opportunities across the county.
“The purpose of this investors’ forum is to unlock Kitui’s investment potential and prepare local investors for the upcoming Kitui County International Investment Conference in October. It will spotlight the six Economic Investment Zones (EIZs) identified in the KIVEST 2025 blueprint,” Mutuku stated. The six zones include Kyuso-Mumoni-Tseikuru-Tharaka, Mwingi Town and its environs, Mui Basin, Kanyangi-KwaVonza-Kanyonyoo, Kitui Town and its surroundings, and Mutomo-Ikutha-Kanziko-Mutha-Athi.
Bestrock Sacco’s Mission to Transform Livelihoods
Vice Chairman Julius Kisinga highlighted the role of Bestrock Sacco, which was established in 1999, in transforming and improving livelihoods across the county. The institution provides small-scale loans to business communities, including market traders, Jua Kali artisans, bodaboda operators, and salonists.
Dr Kisinga reiterated that Bestrock Sacco, a member-owned microfinance institution, aims to be the preferred provider of financial solutions. He noted that the Sacco has a nationwide network of trained loan sales agents, supported by a competent management team and a dedicated board of directors committed to corporate social responsibility. Other board members present included Secretary Ted Munyoki, Treasurer Ms Monah Joel, and Internal Auditor Mbiyu Muhia.
