Written by 2:32 am Politics

Sumac Micro-Finance on shaky grounds – Weekly Citizen

A former worker at Sumac Micro Finance is accusing the directors and senior staff at the banking institution of inside trading.
The founder of the financial institution John Kibatha is linked to money laundering and inside loan allocation to relatives, business associates and foreigners.
According to the dossier with us, the micro finance firm which has its head offices at Consolidated Bank, Koinange Street, has its operations surrounded in mystery.

Founder Kibatha

Njoroge and chief executive officer John Njihia operate secret bank accounts.
Our source revealed that the micro finance management is tribal and is just a Kikuyu affair, thus unable to attract a national outlook. This is opposite of CBK guidelines.
Apart from Njihia being the CEO, the Kikuyus holding top positions are Benson Gacanja (head of Credit), Philip Maina (business development) Gilbert Wanjohi (finance and administration) Peter Muiruri (manager Nakuru branch, Zewerio Githaiga (management Ngara branch), Catherine Munene (manager Githunguri branch) and Paul Maina (ICT officer).
It has also emerged, all staff employed at the headquarter and branches majority are Kikuyu.
Solomon Nyamu (supervisor-operations/Susan Kibocha (internal audit) and Clara Nekesa Wanjala (collection recoveries) happen to be only outsiders.
To complicate matters is that the board of directors is full of Kikuyus. Njoroge is the chairman, Duncan Mwaniki, Mbugua Muiruri, Rufus Maina Kanyogo, Stephen Chege and John Mucai sitting on the board as directors.
According to the dossier, the institution is struggling to survive as depositors openly complain of being treated as second class if the account is not attractive. Infact the Nakuru branch is likely to be closed due to few customers. Ngara branch is to be merged with Koinange branch located on Nginyo Towers, where little business activities are witnessed.

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