Concerns emerge on Kuscco’s value as CS picks inter*m board
Concerns have arisen regarding the accurate valuation of Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco)’s assets and deposits, totalling Sh40 billion, as the government appoints a new interim board to oversee the union’s management. Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Simon Chelugui expressed doubts regarding Kuscco’s reported Sh22 billion in assets during a statement at his Upper Hill office yesterday.
At the inauguration of a 15-member interim board tasked with managing Kuscco for the next year, Chelugui highlighted the challenges faced by the ongoing audit, which aims to uncover discrepancies. He noted that over 4,600 affiliated savings and credit cooperative organisations (Saccos) have extended deposits exceeding Sh18 billion to Kuscco.
Chelugui revealed concerns over the inability to fully ascertain these deposits, as approximately a third is allegedly missing due to unusually high cash withdrawals between February 2013 and April 2024.
Led by Kenya Police Sacco National Chairman David Mategwa (pictured), the new board, supported by a seven-member technical committee composed of CEOs from key Saccos in the country, pledged to restore confidence in the sub-sector and safeguard investments.
“The interim board will be in office for one year and one of the other mandates is to unearth all financial misappropriation incidents and recover any lost amount to restore confidence in the Sacco sub-sector. Further, all those who will be implicated by the ongoing audit report will be subjected to the full force of the law and have their assets disposed of to recover the lost resources and ensure the reconstruction of the union’s financial records to reflect the true state of records.
“This will form the basis of the accurate and acceptable opening balances of the union’s records,” said Chelugui. The CS outlined the board’s responsibilities, including developing and executing a robust recovery strategy, amending union by-laws to better support Sacco growth, facilitating transparent elections, and collaborating with investigative bodies such as the Directorate of Criminal Investigation, Ethics and Anti-Corruption Commission (EACC), and Asset Recovery Agenda.
He emphasised the board’s mandate to uncover financial misappropriations, recover lost funds, and ensure accountability for those implicated. The reconstruction of financial records aims to provide accurate opening balances for Kuscco’s records.
Grant Thornton, a global auditing firm that carried out an examination of the union’s financial affairs, discovered systemic deficiencies in the management of resources, including creative and unreliable financial records.
