The cooperative sector in Kenya is a lifeline for 7.8 million hustlers, mama mbogas, and low-income earners, playing a vital role in the country’s economy.
Despite its importance, a corrupt cabal of four individuals has set out to undermine these efforts over the last three years, compromising the initiatives of His Excellency President William Ruto.
These individuals, with sinister motives, have sought to drain resources from the sector, collapse thriving saccos, and then gloat over the wreckage like vultures feasting on carcasses.
Saccos, which contribute over 45% to Kenya’s GDP, are under threat from an ‘unholy alliance’ led by David Mategwa, infamously referred to as the archbishop of corruption, with Patrick Kilemi, Daniel Marube, Vincent Marangu, and Macloud Malonza forming his corrupt cohort.
Their collective actions have put the sector on a perilous path, threatening the employment of over 2.5 million people who directly or indirectly depend on saccos for their livelihoods.
After months of investigations, the scale of the corruption became clear, exposing widespread unethical practices, shocking instances of sexual exploitation, and an unbelievable web of graft.
Billions have already been siphoned off, leaving sacco coffers on the brink of depletion.
At the center of this scandal is David Sohelo Mategwa, who holds a firm grip over the Police Sacco despite his tainted history.
With no academic qualifications to speak of, and after being dismissed from the Kuscco Board for forging academic documents, Mategwa still occupies influential positions.
He has managed to secure roles at Coop Bank, CIC Insurance, Cooperative Alliance of Kenya, ACCOSCA, and remains the chairman of the Police Sacco, where he collects a weekly Sh 1 million payment. Mategwa’s lack of qualifications has not deterred him from boasting about his influence.
He was overheard at AVFitness Gym in Valley Arcade, bragging about bribing legislators to approve the vetting of the new police inspector general, claiming he regularly pays Sh 50,000 to top police bosses to keep his position.
His arrogance knows no bounds, as he also remarked that his education level is of no concern since many police officers haven’t completed class four, while he reached class six.
Mategwa’s corruption doesn’t stop there. He recently orchestrated the sale of 28 KUSCCO vehicles worth Sh 140 million for a mere Sh 28 million, pocketing the difference.
Now, he is in the process of selling KUSCCO’s headquarters in Upper Hill, valued at Sh 2.8 billion, but he and his accomplices are secretly selling it for Sh 1.8 billion to siphon off Sh 1 billion.
At 72 years old, Mategwa refuses to retire from the Cooperative Alliance of Kenya, running it like his personal property from his home or dingy pubs in Nairobi West.
The CAK hasn’t held an AGM in 20 years, earning Mategwa the nickname “Mugabe of Saccos” among industry players.
Mategwa’s close relationship with cooperatives commissioner David Obonyo, whom he sits with on the Coop Bank board, has allowed many of his illegal activities to go unchecked.
Meanwhile, Daniel Marube made his first fortune by registering fake cooperatives while working at Coop Bank and misappropriating funds meant for poor farmers.
This allowed him to buy 30 acres of land in Ngong, part of which he recently gave to his much younger girlfriend, Felistas Wangui, while ignoring his children.
Wangui is reportedly using Marube to secure the land for free before leaving him for her actual boyfriend, an accountant named Kibe.
Adding further to the scandal is Marube’s long-term homosexual relationship with Patrick Kilemi.
Their secret meetings in Kilimani and Mombasa, along with their notorious parties involving local homosexuals, remain hidden from their families.
They often book villas in Tamarind, Mombasa, where they can engage in their activities without detection.
Also implicated in this scandal is Macloud Malonza, whose leadership in Harambee Sacco has led to massive financial exploitation.
Malonza has drained Sacco resources, inflated land prices, and received kickbacks.
His wife, a branch manager at Cooperative Bank, has unknowingly benefited from some of these corrupt deals.
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