The High Court has issued an order blocking the Annual General Meeting (AGM) of Utumishi Investment Limited, originally scheduled for November 19, 2024. The order was issued following an urgent application filed by members of the Kenya Police SACCO, who raised concerns over the legitimacy of the officials organizing the AGM.
The ruling was delivered by Milimani Commercial Judge Josephine Mong’are, who described the matter as urgent and instructed that no AGM be convened by Utumishi Investment Limited, Ruaraka Housing Estate Ltd, or Kenya National Police DT Sacco until the matter is fully determined in court. The case is centered around claims of alleged mismanagement and lack of transparency in the handling of properties owned by the police SACCO.
Allegations of Secret AGMs and Mismanagement
According to the petitioners, previous AGMs have been conducted without proper notice or participation from a majority of SACCO members. They accused the officials of holding these meetings secretly, thereby locking out many members who were unaware of critical decisions being made regarding the management of SACCO properties. The petitioners also raised concerns over the accountability of the officials, alleging that the properties held in trust for members were being misused without the consent or knowledge of the rightful owners.
In their application to the court, the members stated that the actions of the officials were causing significant damage and wastage to the properties of Utumishi Investment Ltd. They argued that urgent intervention was necessary to prevent further harm, emphasizing the need for accountability in the management of the SACCO’s assets.
“The officials are treating the properties with no accountability,” the members said in court documents, calling for an immediate halt to the AGM and a review of how the SACCO’s assets have been managed. Their concerns were amplified by allegations that some of the officials currently in office were “illegal” and had no mandate to convene the AGM.
Proposed Agenda of the Blocked AGM
The AGM scheduled for November 19 was set to address several important issues, including the appointment of an independent auditor for the year 2024, approval of the budget for the same year, and the receipt of the annual report and financial statements for the year ending December 31, 2023. Elections were also expected to take place during the meeting, which would have had significant implications for the governance of Utumishi Investment Ltd.
However, the members raised serious questions about the legitimacy of the officials calling for the meeting, especially in light of their claims regarding the improper handling of the SACCO’s assets. Their decision to go to court was primarily driven by the belief that the current officials were not acting in the best interests of the members and were instead working in ways that could jeopardize the long-term health of the SACCO.
Court’s Ruling and Future Developments
Judge Mong’are’s decision to block the AGM was based on the urgency of the matter and the gravity of the allegations against the officials. The judge directed that responses to the case be filed within seven days, with the matter set to be mentioned again on December 19, 2024, for further directions.
This ruling marks a critical step in addressing the concerns raised by the SACCO members, as it places a temporary halt on the governance processes of Utumishi Investment Ltd. While the matter is pending, the future of the AGM and the leadership of the SACCO will remain uncertain.
The members who initiated the legal action have expressed their hopes that the court process will bring much-needed transparency and accountability to the management of the SACCO, which holds significant investments and properties meant to benefit the police community. The case has garnered attention not only due to the potential impact on the SACCO’s operations but also because it highlights the ongoing issues of governance and accountability within financial institutions in Kenya.
As the court case progresses, all eyes will be on the outcome and the potential implications for SACCO governance in the country.
