A storm is brewing at Sheria SACCO as members protest a new directive denying dividends and interest on share capital to those who previously defaulted on their E-Loans. The SACCO, which serves members of the legal profession, including judges, magistrates, lawyers, and judicial staff, has come under fire for what many are calling unfair financial policies.
The affected members received the notice through SMS, sparking outrage. Many argue that their outstanding loan amounts had already been deducted from their deposits. Now, under the new rules, they are being denied returns on their investments.
Sources link the changes to Deputy Chief Justice Philomena Mwilu’s leadership at the SACCO. Reports indicate that loan repayment policies have tightened under her directorship, leaving many members locked out of the E-Loan facility.
For years, Sheria SACCO’s E-Loans provided short-term credit, usually repayable within three months. Previously, if a member defaulted, the SACCO recovered the outstanding balance directly from their deposits. But under the new policy, even a single day of delay triggers a loan rollover, adding interest before automatic deductions are made.
This shift has caused financial strain for many members. Several say they were unable to repay loans due to the stricter terms, which have left them without access to the E-Loan facility.
The latest directive has worsened the situation. Instead of considering recovered loan amounts as settled, Sheria SACCO is now reallocating them back into members’ deposits. As a result, members are being told they will not earn dividends or interest on their share capital.
Long-term members are questioning the legality of this move. They argue that deductions have already been made and that the latest directive amounts to double recovery. Many feel the SACCO is unfairly penalizing them.
A source within Sheria SACCO, speaking on condition of anonymity, said the policy is part of broader efforts to secure financial stability. But members see it as punitive and fear it could erode trust in the SACCO.
With discontent rising, there is growing pressure for transparency. Members are demanding dialogue with the SACCO leadership to address their concerns. The fate of their dividends and interest remains uncertain, and the dispute is far from over.
