The government has taken direct control of the Kenya Union of Savings and Credit Co-operatives (KUSCCO), appointing a new Chief Executive to lead the troubled umbrella body as it struggles to recover from a Sh13 billion financial scandal linked to former officials.
CPA Peter Wanjohi Kiama, the Deputy Commissioner for Cooperative Development, has been seconded to the union as its new CEO for a three-month term. He replaces Arnold Munene at the helm of the organization. Kiama will be supported by an interim board, originally established in 2024, to spearhead a massive restructuring effort aimed at recovering lost assets and restoring governance to the cooperative movement’s largest representative body.
The State’s decision to tighten its grip on the union’s recovery process was formalized in a letter dated January 28, 2026. In the directive, Cabinet Secretary for Cooperatives and MSMEs, Dr. Wycliffe Oparanya, stated that Kiama’s primary mandate is to ensure “seamless and efficient operations” during this critical transitional period.
The union is currently implementing an aggressive asset-recovery strategy to compensate member Saccos whose deposits were lost in the scandal. Recent media reports indicate that KUSCCO has successfully increased its total compensation payouts to Sh369.3 million, bolstered by a fresh disbursement of Sh152.4 million in late 2025. Among the top recipients of this latest round of compensation were Hazina Sacco and Njiwa Sacco, which received Sh9.23 million each, followed by UN Sacco at Sh7.58 million and IG Sacco at Sh7.57 million.
To fund these essential payouts, KUSCCO moved to drastically reduce its operational costs and liquidate non-core assets. The union trimmed its branch network from 17 locations to just five and slashed its workforce from 250 employees to 79 to reduce overheads. Revenue has also been generated through the sale of vehicles and the recovery of defaulted loans. The union is targeting the sale of a 60% stake in its insurance subsidiary, Kuscco Mutual Assurance, alongside the sale of land and houses held by mortgage defaulters under the Kuscco Housing Fund (KHF).
The interim board, which is serving a two-year term, has been tasked with recovering at least 70%—approximately Sh6.2 billion—of the Sh8.8 billion in principal amounts originally invested by Saccos. Industry insiders view Mr. Kiama’s appointment as a strategic move to provide the government with direct oversight of ongoing forensic investigations and the multi-million-shilling compensation process.
With the appointment of the new CEO, the government now exercises full control over the union’s affairs through the interim board. Chaired by Mr. David Mategwa, who also heads the Kenya National Police Deposit-Taking SACCO, the board includes a wide array of industry leaders: Jennifer Mburu (Mhasibu SACCO), Robert Njue (WINAS SACCO), Ms. Osmane Khatolwa (Stima SACCO), John Ziro (Imarika SACCO), Philip Rirei (Noble SACCO), and Michael Muriithi (Unaitas SACCO).
Other members include Ms. Priscilla Maranga (representing the Office of the Commissioner), Dr. Brenda Obondo (KMA SACCO), Ms. Mary Kweyu (Invest & Grow SACCO), and Dr. Charles Kioko (GDC SACCO).
“The new board has been tasked with spearheading key initiatives, including restructuring the Union to enhance efficiency and good governance, recovering assets to protect the interests of cooperative members, and preparing KUSCCO for its transition into a Federation,” CS Oparanya noted, signaling a long-term shift in the organization’s structure.
