Awe Diaspora savings and credit co-operative society, an ambitious Sacco that was targeting Kenyans in the diaspora has wound down its operations as a result of the unsustainability of its business model that its members acknowledged during a meeting.

The non-withdrawable savings Sacco allowed members to be making a minimum contribution of Sh5,000 monthly, which were designed to be used as collaterals to secure loans or withdrawn upon the attainment of the completion of the savings period or on a request by the member.

No appeal

Through a notice, the commissioner for Co-operatives development, David Obonyo announced that the cancellation of the registration of the company took place on August 22 last year, noting that no appeal had been made by the time the notice was being issued.

“In pursuant of section 65 of said act, I appoint Susan Ong’ondi , assistant commissioner of co-operatives development to be the liquidator for a period not exceeding one year and authorize her to take into her custody all the properties of the said society including such books and documents as one deems necessary for the completion of the liquidation,” he said.

Clarifying on the subject matter, Seth Emmanuel, the communication lead for Awe diaspora Sacco noted that the move was agreed upon by members adding that no previous investment was at risk.

“In April 2024, during a formal Annual General Meeting (AGM), members unanimously voted to dissolve AWE Diaspora Sacco after determining that its operational model was unsustainable. This decision was made transparently and collaboratively, reflecting the collective agreement of all Members through voting,” he said.

According to him, the dissolution process is currently being conducted in compliance with regulatory requirements of the Ministry of Cooperative, including a final audit and that upon its completion, all remaining funds will be distributed to members proportionally through the aforementioned liquidator.

“No member has raised concerns about the safety of their savings, as all funds are fully accounted for,” he added.