Nearly 60 Saccos are staring down at the auctioneers hammer over unpaid debts amounting to Sh1.36 billion. According to a report that appeared in a local business newspaper, 58 Saccos took Sh1.36 billion loans from the financially troubled Kenya Union of Savings & Credit Co-operatives (Kuscco).
These Saccos took the loans against deposits worth Sh368.39 million. Now, the State has issued notices for the immediate payment of the difference which amounts to Sh987.86 million failure to which the Saccos will face auctioning.
“It has come to the attention of this office that your Sacco owes Kuscco an outstanding loan… The continued failure to meet obligations to Kuscco as per the loan agreement entered into by both parties has been detrimental given the current status of the union,” one of the letters addressed to the Saccos states.
“You are hereby required to settle the outstanding loan balance with immediate effect. In case full settlement of the said amount is not feasible, a written plan on how you intend to settle this outstanding loan should be submitted to both this office and Kuscco within 14 days from the date of this letter.”
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Some of the Saccos in the list of the defaulters are Kencom Sacco with Sh377.5 million loan, Nacico Sacco and Nacico Investment Co-op with Sh358.01 million loan, Maseno University with Sh106.43 million loan, Stegro with Sh68.58 million, Umowa Sacco with Sh49.07 million, Kakamega County Maendeleo with Sh44.93 million, Sonygar Sacco with Sh43.79 million, Migori Teachers with Sh35.76 million, Malindi Biashara with Sh35.05 million, and Lamu Teachers with Sh23.92 million.
Kuscco has been struggling to survive after suffering massive fraud that amounted to over Sh12 billion. The fraud, mismanagement and loss of funds at Kuscco was unearthed by audit that was conducted by PricewaterhouseCoopers (PwC).
The audit exposed theft, cooking of financial books, and conflict of interest that resulted in the mega loss of money. The audit revealed that Kuscco had been left to sink by its management with liabilities of Sh17.7 billion against assets of Sh5.2 billion following the fraud.
In March 2025, Kuscco had announced that it was considering selling its insurance arm and properties held by loan defaulters to refund member savings and credit cooperatives societies (Sacco) who lost billions of money in an internal fraud scheme.
In May 2025, it listed over 60 properties for auction. The properties were owned by loan defaulters and included houses, plots of land, apartments and commercial buildings. The properties had been mortgage-financed through the Kuscco Housing Cooperative (KHC).
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