A parliamentary committee has recommended a halt to deductions from police officers’ salaries by the Police Exodus Sacco until a thorough membership audit has been conducted by the registrar of cooperative societies. The committee’s decision follows an inquiry into the operations of the Police Exodus Sacco by the Committee on Defence and Internal Affairs, which uncovered instances of fraud and irregularities in the sacco’s management.
According to the report, the Registrar of Cooperatives Societies has been directed to oversee the audit of the Exodus Sacco and to suspend all mandatory deductions on officers’ salaries and contributions to members’ savings until a comprehensive membership register is compiled. The report emphasizes that only willing members should be registered during this process.
The parliamentary inquiry was initiated in response to complaints by police officers regarding irregularities in the management of the Sacco, including difficulties accessing their savings. The Police Exodus Sacco, established in 2007 to improve the welfare of police officers, currently has close to 42,000 members, primarily consisting of junior police officers.
Instances of fraud and mismanagement within the Sacco have been a longstanding issue, with records being destroyed at one point, making it challenging to ascertain the savings of individual members. An audit of the Sacco would necessitate the registrar of cooperative societies traveling across the country, as many members reside in rural areas.
Furthermore, the Sacco would need to re-register its members voluntarily in accordance with Sacco laws, a process that could take months and potentially impact the Sacco’s overall performance, given that its primary source of income is from member savings.
However, the parliamentary committee clarified that their recommendation to halt deductions would only apply to savings and not loan repayments. Members with outstanding loan obligations are expected to continue their payments to the Sacco.
Additionally, the report highlighted that deductions made in the form of retirement benefits, contrary to the Pensions Act, should be refunded to affected personnel with interest. The Police Exodus Sacco has been deducting 50 percent of officers’ savings as retirement benefits, restricting access to those funds until retirement.
Several police officers interviewed by the committee claimed they were coerced into joining the Police Exodus Sacco against their will. Those who refused alleged that they were denied recommendation letters by their superiors to obtain loans from other financial institutions.
The majority of affected personnel are junior officers, with statistics showing that 91 percent of Sacco members hold ranks ranging from constable to inspector. However, senior officers have been the primary beneficiaries of the Sacco’s loan services, receiving a significant portion of the total loans disbursed.
The Chairman of the Police Exodus Sacco, Mr. Wilson Omoding, acknowledged the issues raised by the committee but noted that the report did not fully address the progress made under his leadership since 2020. He stated that the Sacco management has corresponded with the registrar of cooperatives and the Police Council to address the issues raised, with both entities expected to provide guidance on the next steps.
