KUSCCO Board Dismissed by CS Chelugui Amid Allegations of Financial Mismanagement
Cooperatives and MSMEs Cabinet Secretary Simon Chelugui dismissed the Kenya Union of Savings and Credit Union (KUSCCO) board on Monday due to claims of fund mismanagement.
During his Monday remarks, the CS stated that the Union’s leadership couldn’t account for Ksh5.5 billion taken from the organization’s accounts between February 2013 and April 2024.
“Preliminary findings reveal systemic issues in resource management, including significant cash withdrawals that don’t align with typical operations – totaling Ksh5,466,016,687 between February 2013 and April 2024.”
Chelugui emphasized that removing the entire board was aimed at promoting transparency in the sector.
“The Ministry is steadfast in its dedication to promoting transparency, accountability, and ethical behavior within the cooperative sector,” he said.
KUSSCO serves as the representative organization for saccos in the country, advocating for and representing Kenyan Saccos.
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The Union also provides financial and technical support to saccos and other cooperatives as part of its mandate.
Moreover, the Union’s financial and technical support mainly benefits low and middle-income earners in both rural and urban parts of Kenya.
The saccos’ umbrella organization has been under scrutiny since November 2023 due to questionable activities.
An investigation launched during the same period revealed that KUSSCO was involved in operating unlicensed saccos since October 2023.
As doubts about the union’s management surfaced, the Sacco Societies Regulatory Authority (SASRA) received a request from Chelugui to investigate the Union.
Despite the concerns, the Union’s leadership denied allegations of running an unlicensed Sacco at the time.
KUSCCO Board Dismissed by CS Chelugui Amid Allegations of Financial Mismanagement