David Mategwa, the Chairman of the Kenya Union of Savings and Credit Co-operatives (KUSCCO), has issued a firm assurance to member Saccos that the union is committed to refunding all outstanding monies.
Speaking on the union’s recovery efforts during the 11th Annual Sacco Leaders Convention, Mr. Mategwa also explained why they had a strategic leadership transition. CPA Peter Wanjohi Kiama was appointed as the Acting CEO and Managing Director to oversee operations while the current MD, Arnold Munene, remains on sick leave.
“In a sensitive institution like KUSCCO, leadership cannot be left in a vacuum,” Mategwa stated. “The government has appointed a cooperative officer to step in for a three-month period as we monitor the health of our current MD.”
Addressing the union’s financial obligations, the Chairman highlighted that KUSCCO is making steady progress in returning funds. He noted that the union successfully repaid Ksh 365 million to Saccos last year and plans to accelerate this process through aggressive debt recovery and asset liquidation.
“We have promised to settle these debts over time as we continue to recover funds. We are currently selling properties, conducting auctions, and pursuing borrowers who have defaulted on their loans,” Mategwa explained.
The union has set an ambitious target to recover over Ksh 1 billion this year through property auctions and other recovery measures.
In a plea for cooperation, Mr. Mategwa urged Saccos that have initiated legal action against the union to reconsider and seek dialogue instead. He emphasized that litigation could hinder the very recovery efforts intended to pay them back.
“We are inviting those in court to the negotiating table so we can find a way forward together. It is important to understand that those funds will only be available if we are allowed to execute our recovery plan,” he said.
Furthermore, the Chairman called on Saccos to ensure their financial records and claims are properly documented. He noted that while many Saccos have already been reimbursed after providing proof of their claims, others have struggled to provide the necessary paperwork.
“We urge Saccos to provide accurate records and accounts to verify the money they are claiming. For those who have provided clear documentation, the process has been smooth, and they have received their funds,” Mategwa said.
