Government warns Kenyans against joining these 4 SACCOs

Beware before you lose your hard-earned savings.

Bundles of Kenyan notes (Twitter)

Kenyans have been put on red-alert against depositing their savings with unlicensed online Sacco’s and investment schemes.

The Central Bank of Kenya and Sacco Societies Regulatory Authority (Sasra) warned Kenyans against joining Milazi, Zeepo, J-Hela and Homepesa SACCOs as they risk losing their hard-earned cash through this schemes.

These digital-online Saccos and schemes sign up users online and begin to take in savings via mobile money platforms, with some promising handsome returns.

Zeepo, for instance, offers customers a savings option through a mobile app or signing up via the web.

The Sacco, which is a network of mobile money and banking agents, seeks to have its customers save, borrow, pay transfer and insure from a mobile or nearby outlet without having to undergo tedious processes.

J-Hela, which describes itself as a mobile Sacco, is also taking withdrawable deposits without a valid license.

The platform is owned by Thika Town MP aspirant Patrick Wainaina, who also runs Jungle Nuts, a macadamia nuts processor in Thika.

Homepesa Sacco, which is not licensed by Sasra, is taking withdrawable deposits. It is registered to only undertake back-office operations, meaning it cannot take withdrawable deposits.

Milazi, on the other hand, promises a deposit interest rate of seven per cent monthly for six months. Members can also borrow loans of up to three times the amount they have contributed and are charged an interest rate of 15 per cent per month.

The four online Saccos continue operating despite missing on the latest schedules of approvals by the two regulators.

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