David Mategwa
Daniel Marube
Vincent Marangu
The cooperative sector in Kenya has long been a cornerstone of the nation’s economic growth, providing essential financial support to millions of low-income earners, including the so-called hustlers and mama mbogas. This sector plays a vital role in boosting Kenya’s GDP, contributing over 45%, while also creating employment opportunities for millions. However, recent allegations have painted a grim picture of corruption, mismanagement, and unethical practices that threaten to destabilize the sector. This article delves into the intricate web of corruption involving key figures in the cooperative industry, including David Mategwa, Daniel Marube, and Vincent Marangu, highlighting the impact on the economy and the urgent need for reforms to safeguard the livelihoods of many Kenyans.
The Importance of SACCOs in Kenya’s Economy
SACCOs serve as financial lifelines for millions of Kenyans. They provide affordable loans, promote savings, and enable members to invest in projects that boost economic growth. For low-income earners, SACCOs are a key source of credit, allowing them to grow businesses, pay for education, and improve their livelihoods. This is particularly true for Kenya’s informal sector, where access to formal banking can be limited.
In fact, SACCOs contribute over 45% of Kenya’s GDP, demonstrating their economic significance. More than 2.5 million jobs are directly or indirectly linked to the sector, underscoring the magnitude of its influence. Yet, the cooperative sector is facing a grave threat due to allegations of corruption and mismanagement.
Corruption in the Cooperative Sector
In recent years, a disturbing trend of corruption has taken root in the cooperative sector, with allegations pointing to several prominent figures who have been accused of exploiting SACCOs for personal gain. These actions not only undermine the integrity of the sector but also jeopardize the livelihoods of millions of Kenyans who depend on SACCOs for financial stability.
David Mategwa: The Alleged “Archbishop of Corruption”
David Mategwa, who heads the Police SACCO, has become a controversial figure in Kenya’s cooperative sector. Despite holding key positions across various cooperative organizations, Mategwa has been accused of serious financial mismanagement and corruption. His involvement in multiple institutions such as Coop Bank, CIC Insurance, and ACCOSCA raises concerns about conflict of interest, with allegations suggesting he has been using these positions to amass wealth at the expense of SACCO members.
The sale of 28 KUSCCO vehicles at a fraction of their market value is just one of the many accusations against him. Reports suggest that Mategwa profited from this deal, pocketing millions while leaving SACCO members in the lurch. Additionally, his alleged plans to secretly sell off KUSCCO headquarters in Upper Hill at a significant undervaluation have only further cemented his reputation as a key player in the sector’s corruption crisis.
Daniel Marube: The “Mugabe of SACCOs”
At 72 years old, Daniel Marube, the head of the Cooperative Alliance of Kenya (CAK), has been accused of refusing to retire, choosing instead to run the organization as his personal fiefdom. Known as the “Mugabe of SACCOs,” Marube has been implicated in numerous scandals, including allegations of financial mismanagement and corruption within the sector.
Marube’s refusal to step down has allowed him to maintain a stranglehold over CAK, with critics claiming that the organization has not held an Annual General Meeting (AGM) in over 20 years. His alleged involvement in dubious land deals and personal enrichment schemes has drawn significant public criticism, with many calling for his immediate resignation.
Vincent Marangu: Involvement in the Corruption Web
Vincent Marangu is another key figure embroiled in the corruption allegations. His close relationship with other major players like Patrick Kilemi has raised eyebrows, with reports suggesting that Marangu has been involved in financial misdeeds and misuse of power within the SACCO sector. His alleged role in influencing high-level decisions and facilitating the mismanagement of cooperative funds has added to the growing concerns about corruption in the sector.
The Role of SASRA and Regulatory Failures
The SACCO Societies Regulatory Authority (SASRA) is tasked with overseeing the operations of SACCOs in Kenya. However, allegations against SASRA CEO Patrick Njuguna suggest that the regulator has turned a blind eye to the rampant corruption within the sector. Reports indicate that Njuguna accepted bribes to overlook illegal activities, further exacerbating the crisis facing SACCOs.
Key Figures: The Unholy Alliance
David Mategwa, Daniel Marube, and Vincent Marangu have allegedly formed an “unholy alliance,” working together to milk the cooperative sector dry. Their actions have not only compromised the financial health of SACCOs but have also threatened the livelihoods of millions of Kenyans who depend on these institutions for support.
How Corruption Affects Kenya’s Economy
The financial mismanagement and corruption within SACCOs have led to billions of shillings being lost, with the coffers of several once-thriving SACCOs running dry. The collapse of these institutions could have devastating consequences for Kenya’s economy, particularly in terms of job losses and reduced access to credit for low-income earners.
Efforts by President William Ruto to Protect the SACCO Sector
President William Ruto has made efforts to support and revitalize Kenya’s SACCO sector, recognizing its importance in the country’s economy. However, the alleged corruption and collusion by figures like Mategwa, Marube, and Marangu pose significant obstacles to these efforts. Urgent reforms are needed to restore transparency and accountability in the sector.
The Future of SACCOs in Kenya
Can SACCOs survive this corruption crisis? The future of the sector depends on decisive action being taken to remove corrupt officials and implement stronger regulatory frameworks. If left unchecked, the corruption plaguing the sector could result in the collapse of more SACCOs, further undermining Kenya’s economic stability.
Also Read: Cabinet Secretary Rebecca Miano Under Fire for Alleged Corruption and Mismanagement in KenGen and Government Roles
The cooperative sector is a vital part of Kenya’s economy, but it is currently under threat from corruption and mismanagement. Figures like David Mategwa, Daniel Marube, and Vincent Marangu stand accused of exploiting their positions for personal gain, at the expense of millions of Kenyans who rely on SACCOs for financial support. Urgent reforms and stronger oversight are needed to restore integrity to the sector and ensure its continued growth and success.
