The Government has ordered an inquiry into the troubled Afya Savings and Credit Co-operative Society Limited (Afya Sacco), following mounting concerns over financial mismanagement, irregular payments, and possible breaches of the Co-operative Societies Act.

In a gazette notice dated October 9, 2025, the Commissioner for Co-operative Development, David Obonyo, authorized an investigation into the Sacco’s by-laws, financial health, and the conduct of both current and former management officials.

The inquiry will be carried out under Section 58 and Section 73 of the Co-operative Societies Act, Cap. 490, which empower the government to investigate and sanction co-operatives found in violation of the law.

Obonyo appointed Deputy Commissioner Peter Kiama and Assistant Commissioner Stephen Kiritu Mwangi to lead the inquiry within 21 days, directing them to conduct the probe “at such place and time as may be expedient and duly notified by them.”

“The attention of all officers and members of the society is directed to the following sections of the Co-operative Societies Act,” read the notice in part.

“I authorize an inquiry to look into the by-laws, working and financial conditions, and conduct of present or past management committee members of Afya Sacco.”

The inquiry comes amid deepening turmoil at Afya Sacco, one of Kenya’s oldest and largest Saccos serving healthcare workers, which has been rocked by multiple financial scandals and governance breakdowns over the past two years.

In August 2025, the Sacco Societies Regulatory Authority (SASRA) opened a probe into the alleged misappropriation of over Sh550 million through undocumented withdrawals, inflated allowances, and unapproved payments.

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Reports indicate that between February 2022 and August 2024, Sh360.5 million was withdrawn in cash without supporting records, while directors’ transport allowances ballooned from Sh5.3 million in 2022 to Sh13.9 million in 2023.

Earlier, Afya Sacco was also forced to write off Sh361.6 million linked to a failed investment with the Kenya Union of Savings and Credit Co-operatives (KUSCCO), raising further concerns about financial oversight.

In June 2025, during a heated Annual General Meeting, members voted to dissolve the entire board over missing funds reportedly exceeding Sh2 billion, citing frustration over poor governance, limited loan access, and lack of transparency.