Airport Sacco is grappling with a massive loan default amounting to KSh49.96 million, owed by former board members and employees, according to a Supervisory Committee report presented ahead of the institution’s Annual General Meeting.
The report reveals that the former Chief Executive Officer alone owes KSh27 million, while the former chairman is indebted to the Sacco to the tune of KSh2.4 million. The former treasurer has outstanding loans worth KSh9.3 million, with other ex-staff members collectively owing KSh11.2 million.
Alarmingly, none of the officials had begun repaying their loans as of 2025, raising concerns over significant credit risk to the cooperative. “The Committee observed that repayment performance remains extremely poor, with no recoveries recorded during the year 2025. Currently, the only recovery mechanisms being applied include deductions from dividends,” the report stated.
The Supervisory Committee further noted that cases relating to loan recovery are at different stages before the Co-operative Tribunal. It warned that continued delays in resolving these matters expose the Sacco to substantial financial losses and erosion of members’ funds.
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The current Board of Management has been urged to pursue legal avenues to recover the outstanding amounts and provide regular updates to members on the progress of recovery efforts.
Meanwhile, the committee disclosed that loans issued to current board members and staff stood at KSh50 million as of December 31, 2025. It emphasised that insider lending must strictly comply with regulatory requirements and be extended on terms similar to those offered to ordinary members.
The revelations highlight the growing challenge of governance and accountability within cooperative societies, where insider lending has often been flagged as a risk factor.
The Supervisory Committee signalled the urgency of decisive action to protect the institution’s financial health and restore confidence among members.
By Masaki Enock
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