April 28th 2017

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Depositors of County Sacco in Chuka dash for their money after panic grips town

"Thugs broke into our offices and vandalized the monitor for our CCTV system. Depositors’ money is safe and intact," she explained. But these explanations did not persuade depositors who still demanded to be paid.

By Free Press Correspondentnewsdesk@kenyafreepress.comThursday, 29 Sep 2016 12:12 EAT

Panic has gripped depositors with a fast growing microfinance institution in Meru County following rumours that the institution was facing liquidity problems. Customers of County Sacco Society Limited Chuka Branch have withdrawn massively from the institution from Monday.

After the branch remained closed for the better part of Monday morning, rumours spread that the sacco was about to close, prompting hundreds of account holders to visit the branch demanding their money. The management tried to assure depositors that the sacco was safe, but this did not stop the withdrawals.

The Sacco’s chief executive officer Agnes Mwenje explained that the institution was on sound financial footing. She denied the rumours that the Sacco was on verge of collapse, linking the fears to a break-in at the institution.

"Thugs broke into our offices and vandalized the monitor for our CCTV system. Depositors’ money is safe and intact," she explained. But these explanations did not persuade depositors who still demanded to be paid.

The branch manager posted a notice on the wall informing the customers, “This is to apologize for the inconvenience of opening late today. This was due to a minor break-in to the office but the same has been handled by the police we remain humbled to serve you better.”

This did not persuade many depositors who were still going to the branch on Tuesday and yesterday to withdraw their funds. Workers at the branch have been at pains to explain that the sacco was in sound financial footing.

The local police boss has confirmed that investigations are underway to establish the perpetrators of Monday’s break- in.

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