Faith Masita
Former senior officials at Airports Sacco have defaulted on loans amounting to nearly Sh50 million, raising fresh concerns over governance and credit risk within the institution.
A supervisory committee report reveals that the unpaid loans—totaling Sh49.99 million—remain largely unrecovered, despite ongoing efforts to pursue repayment from the former officials.
“The loans remain largely unrecovered and continue to pose a significant credit risk to the society,” the report states, warning of potential financial strain on members’ funds.
The bulk of the defaulted amount is attributed to top leadership, including a former chief executive who allegedly owes Sh26.96 million, a former treasurer with Sh9.36 million, and a former chairman with Sh2.44 million. Additional former staff account for over Sh11 million in unpaid loans.
Recovery efforts have so far yielded little success, with the Sacco now escalating the matter to the Co-operative Tribunal in a bid to reclaim the funds. The committee has also recommended exploring further legal mechanisms and keeping members updated on progress.
The report further flags broader governance gaps, particularly around insider lending. It notes that such practices expose the Sacco to “significant financial loss and erosion of members’ funds” if not properly managed.
While loans issued to current staff—amounting to over Sh50 million—are reportedly performing and fully guaranteed, the committee cautions that some extend beyond employees’ retirement or contract periods, increasing the risk of future defaults.
The Sacco has been urged to tighten its credit policies, ensuring loan terms align with borrowers’ repayment capacity, employment duration, and retirement timelines to safeguard members’ savings.
