Probe questionable dealings at Saccos
Revelations that top managers of the Kenya Union of Savings and Credit Co-operatives Society (KUSCO) benefited illegally from members’ savings could be the tip of the iceberg regarding shady dealings going on at many Savings and Credit Cooperatives Societies (Saccos).
Saccos have become dens of corruption where a few greedy officials amass immense wealth at the expense of other members. On Monday, Cooperatives a Cabinet Secretary Simon Chelgui sacked the entire board of KUSCO following allegations that they siphoned Sh587 million between 2013 and 2024. The officials’ alleged sins included transferring money to their own accounts, riding on a weak internal management structure to manipulate books of accounts and making transactions that cumulatively cost KUSCO over Sh6.5 billion over the period covered by a forensic audit.
Like KUSCO, most Saccos are riddled with cases of officials misappropriating members’ funds through illegal withdrawals, cash transfers and other unlawful activities.
Mismanagement, fraud, bad loans and other illegal activities at Saccos pose a major threat to the otherwise thriving multitrillion-shilling savings schemes if the government continues to turn a blind eye. At stake are hundreds of millions of shillings of members’ savings that have either been lost or are at risk of being lost as more and more cases of financially troubled Saccos come to light.
Besides unscrupulous managers only out to fill their own pockets, Saccos also face other problems emanating from companies that employ members. Some companies either fail to remit members’ deductions or remit the money late. In some cases, companies have tight control of Saccos, pulling strings in the election of officials and the issuing of loans.
A few years ago, a similar audit report revealed questionable dealings at Stima Investment, including irregular land purchases where officials bought occupied land without conducting due diligence or site visits. Before that, members of Ekeza and Mwalimu Saccos allegedly lost billions of shillings through mismanagement and fraud.
Chelgui’s action on KUSCO is commendable, but it should not end there. The EACC and the DCI should be invited to unearth suspicious dealings in all Saccos so that they can regain members’ confidence.
