In October 2023, an inspection conducted by the ministry revealed serious administrative and financial malpractices at the Kenya Union of Savings and Credit Cooperatives (KUSCCO Ltd). The investigation revealed that the management had engaged in malpractices that resulted in a loss of Ksh5.5 billion from highly suspicious withdrawals that took place from February 2013. The ministry took swift action, including the dismissal of top managers and administrators, to facilitate a comprehensive audit of the union’s operations and financial records.
As part of the government’s commitment to good governance in the Cooperatives sector, the board of directors of KUSCCO Ltd has been dismissed immediately. The government will appoint an interim board comprising 15 members drawn from esteemed leaders of affiliate Cooperatives in accordance with the Cooperatives Societies Act CAP 490. The government is dedicated to ensuring responsible and transparent management for the benefit of all stakeholders.
During a press conference, Cabinet Sectretary for Cooperatives and MSMEs Development Simon Chelugui was flanked by a section of leaders from the cooperative sector, including the Commissioner for Cooperatives, David Obonyo, KUSCCO’s acting managing director Arnold Munene, Kenya National Police DT SACCO Chairman David Mategwa, and Cooperative Alliance of Kenya Ltd-CAK Chief Executive Officer Daniel Marube. The CS assured all stakeholders that further investigations are ongoing, and anyone found culpable will face the full wrath of the law.
