PEFA Sacco is facing sharp criticism from its own members, who accuse the cooperative of mismanagement and dragging its feet when it comes to refunding savings.
The Sacco, which is run by PEFA Churches, has been called out by dozens of people who say they have been waiting months, some even more than a year, to get their money back after officially choosing to exit.
From early 2024 through August 2025, many members have filed withdrawal notices, but the Sacco has allegedly failed to honor its obligations in time, leaving members stuck in financial limbo.
The frustration among members is boiling over. At a recent gathering, one of them expressed the growing anger by saying PEFA Sacco behaves as though it is holding people hostage.
Members argue that if someone has decided to walk away, they should be allowed to leave with their savings without unnecessary obstacles. Instead, what they have met are endless delays, excuses, and mounting uncertainty.
During a heated Saturday meeting, the Board Chairman admitted to serious problems within the Sacco. He listed issues such as ghost loans, corruption allegations tied to both leaders and employees, fake loan approvals, poor record-keeping, and increasing numbers of defaulting borrowers.
These challenges, he said, have created a huge strain on the Sacco’s cash flow, making it almost impossible to process refunds quickly. Members, however, see these explanations as proof of deep mismanagement rather than genuine reasons for delay.
What has angered many further is the sense of double standards. Members point out that while the Sacco continues to demand repayments on loans and accepts fresh deposits without hesitation, it refuses to prioritize refunding those who are owed money.
They argue that PEFA Sacco should consider using its assets, including land deeds, to secure funds that can be used to clear the refund backlog for more than 100 affected members.
This, they say, would be a clear demonstration that the Sacco is serious about restoring trust.
The credibility of PEFA Sacco is now at stake, and its close ties to the church are also being questioned.
Members openly wonder why a faith-based organization cannot uphold basic financial integrity. One member compared the situation to banks, pointing out that commercial institutions are able to release deposits immediately, yet the Sacco continues to delay.
For many, this is not just about money but also about broken promises and shattered confidence.
Unless PEFA Sacco acts swiftly to address the refund delays, rebuild transparency, and commit to genuine reforms, there is a real danger that more members will walk away. Some insiders warn that if this mass departure happens, it could bring the cooperative to its knees.
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