150 Saccos that have now shut down or gone dormant disappeared with Sh1.33 billion belonging to the Kenya Union of Savings and Credit Co-operatives (Kuscco). In an effort to recover the funds, Kuscco has now asked the national government’s assistance.
Some of the Saccos that can no longer be traced include Nitunze with Sh320 million, Mucumewo with Sh90.02 million, Thika Tea with Sh87.19 million, Sukari with Sh78.6 million, and Soko Sacco with Sh38.19 million.
The 150 Saccos, Kuscco says, took the money in form of loans from the organization’s Central Finance Fund (CFF). Shockingly, though, not all Saccos that accessed the money had deposits with Kuscco.
In a letter, Kuscco says that 35 of the 150 Saccos that got the funds had no deposits. The remaining 115 Saccos had deposits of Sh133.8 million at Kuscco. The total deposits held by the Saccos were way less than the amount they borrowed. For instance, Kuscco figures show that the 150 Saccos took a total of Sh1.46 billion.
When contrasted against the deposits the Saccos held at Kuscco, the organization was left exposed to a loss of Sh1.33 billion which it is now struggling to recover.
“We request your assistance in confirming the operational status of certain Saccos that borrowed loans from our Central Finance Fund department… These Saccos are currently listed as dormant or not in operation, and it is imperative for our records and due diligence processes to verify whether they are indeed inactive or have been formally liquidated,” Kuscco Managing Director Arnold Munene was quoted by local media in a letter dated August 1, 2025.
In July 2025, Kuscco started sending letters to some Saccos that were default. 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.
“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 stated.
“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.”
READ MORE: Kuscco bosses took Sh192 million insider loans. See amount each took
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 Kuscco 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.
