The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has officially commenced a major refund exercise, disbursing a total of Sh284.2 million to various Savings and Credit Cooperative Organizations (Saccos) over the last two years.
The payout follows the conclusion of a comprehensive audit into the union’s financial operations and marks a pivotal step in restoring confidence within the cooperative sector after a period of liquidity challenges.
Speaking in Mombasa during the Annual Lenders Co-operatives Summit, officials confirmed that the union paid out Sh132 million in 2024 and has released an additional Sh152.2 million in 2025.
Co-operatives Cabinet Secretary Wycliffe Oparanya and KUSCCO Chairman David Mategwa told delegates that the union has shifted its full focus toward asset recovery and clearing outstanding dues to members.
Asset Auctions
Mr. Mategwa revealed that the funds are largely being generated through a crackdown on defaulters, including the auctioning of properties attached to non-performing loans.
“We are doing the recovery where people have defaulted. We have gone through all the processes to ensure we recover the properties and send them to auction,” Mategwa said.
He noted that the strategy is already yielding results, citing the recent sale of two houses which fetched Sh8.5 million each. These proceeds, he confirmed, were immediately deposited into Sacco accounts.
“As we are talking now, we have already returned this money to the Saccos,” he added.
Regulatory Overhaul
Cabinet Secretary Oparanya emphasized that while refunds are ongoing, the government is implementing structural reforms to prevent a recurrence of financial mismanagement. He announced a five-year roadmap aimed at stabilizing the sector, with a primary focus on the Deposit Protection Fund.
“We must strengthen oversight institutions like the Sacco Societies Regulatory Authority (SASRA), which play a supervisory role in the financial sector,” Oparanya stated. “We must protect members against their savings being eroded.”
Ethical Leadership
Addressing the root causes of the sector’s previous struggles, KUSCCO Managing Director Arnold Munene called for the professionalization of cooperative leadership.
Munene proposed the introduction of a mandatory national certification program for Sacco board members to ensure ethical standards and good governance are maintained.
“At some point, this program should be a must-have for all board members,” Munene said.
The summit concluded with the formal presentation of a new report on Sacco sector transformation to the Cabinet Secretary. The report outlines a long-term strategy to rebuild trust, strengthen oversight, and guarantee the security of member deposits.
Top 5 Recipients Saccos
- Hazina Sacco Ksh 9.23 million
- Njiwa Sacco Ksh 9.23 million
- UN Sacco Ksh 7.58 million
- IG Sacco Ksh 7.56 million
- Ndehe Chai Sacco Ksh 5.35 million
- Mhasibu Sacco Ksh4.39 million
