Vibrant cooperative society in Sh130m property row in Eldoret
Keiyo Housing Cooperatives Society building in Eldoret town. A dispute centres around the multimillion-shilling property.
A leadership row and shadowy deals are threatening the survival of the once vibrant Keiyo Housing Cooperative Society.
The dispute centres around a multimillion-shilling property in Eldoret.
Trouble started after it emerged that some directors had allegedly struck a Sh130 million deal with a private developer, who will demolish an existing building, construct a mall and run it for 15 years, without the knowledge of shareholders.
Angry members ejected the developer who wanted to demolish the property, vowing not to allow him into their premises.
The property, which is more than 50 years old, is owned by over 1,900 members from Keiyo South sub-county.
Shareholders say the deal is illegal, stating that no member was consulted over the plans and the ultimate goal was to disinherit them of the property.
Led by Mr Joseph Kogai, they faulted the management over the lease agreement with the developer without seeking their consent.
“None of the 1,931 members were consulted. It is shocking to learn that the investor is claiming to have the green light from more than 3,000 members,” he said.
“It is wrong for the chairman to allege the members consented to the lease agreement. This is fraud and we call upon the Directorate of Criminal Investigations (DCI) to unearth those involved in grabbing our property.”
Mr Kogai accused the society chairman and the investor of seeking to bribe some members into sanctioning a deal that was in bad faith.
“Any matter regarding our property must be approved through an Annual General Meeting. At the moment we have had none but we only hear of boardroom meetings,” he said.
Ms Elizabeth Jepkemoi, another shareholder, said they will move to court to stop the lease plans.
“A majority of members were not consulted before the society officials engaged with the investor to lease him our property. We feel short-changed in the whole deal and we will seek court redress,” she said.
Uasin Gishu County Woman Representative Gladys Boss Shollei, who visited the property, called on the leadership to halt the planned leasing of the property until all members approve it.
“It is better to seek the views and input of all the members before such a deal is entered. The society has been vibrant and the members are second generation since their principal shareholders have since passed on or some of them are old and no one should take advantage of them,” she said.
The embattled chairman, Mr Titus Korir, maintained that members had given the investor the green light to demolish the old building and construct a business mall in a project that will cost Sh130 million upon completion.
“The investor is to recoup the money invested in the construction for a period of 15 years through renting business spaces before handing over the property to the society members, who will receive an income of Sh237,867 million by the end of the lease period,” he said.
He said they met with delegates from the three zones – Kaptarakwa, Chepkorio and Metkei – who had received the mandate from members to go ahead with the lease plans with the investor, who had paid a deposit of Sh8.5 million to society’s bank account.
“We followed due process before deciding to lease the property, contrary to claims by some members, and the process was above board,” he said.
