The Senate has grilled Cooperative Development Commissioner David Obonyo over how Sh7.6 billion in KUSCCO’s loan book was allegedly overstated despite regulatory oversight.
Obonyo told senators that member complaints triggered an inspection that uncovered major financial and governance irregularities at the cooperative umbrella body.
He said forensic investigations by Grant Thornton and PwC revealed extensive accounting and financial management failures, with possible collusion among senior officials.
Senator Okiya Omtatah questioned why regulators relied on audited accounts instead of independently verifying KUSCCO’s financial records. The Senate committee has vowed to strengthen oversight and accountability in the cooperative sector to protect members’ savings.
