The senior staff and directors of the embattled Kenya Union of Savings and Credit Cooperatives (Kuscco) took insider loans of Sh192 million. This has been disclosed by the Cabinet Secretary for Co-operatives and Micro Small and Medium Enterprises (MSMEs) Wycliffe Oparanya.
The Kuscco bosses breached rules and policy by allocating themselves loans that were over five times their deposits. According to CS Oparanya, George Otieno Ototo, the ex-boss of Kuscco led the pack of Kuscco bosses in taking the insider loans with a Sh103,114,609 loan.
He was followed by David Ogega with Sh20,586,126, George Owino at Sh17,982,660, David Moyia Sh13,570,224, Kenneth Kimaiyo Sh9,505,004, Andrew Okwach Sh7,799,914, Wilfred Aima Sh7,616,009, Alfred Mlolwa Sh6,394,507, George Magutu Sh4,143,117, and Bernard Ngunjiri Sh2,071,862.
The 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.
Ototo had gone into hiding after his former colleagues George Magutu, George Owino, Jackline Omolo and Mercy Muthoni were arrested. On February 16, 2025, though, Ototo surrendered himself before Milimani Senior Principal Magistrate Dolphina Alego.
Ironically, Ototo, who was the Kuscco boss also went to court demanding up to Sh120 million payment from Kussco that he said would enable him to enjoy a peaceful retirement.
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Ototo in his suit at the Employment and Labour Relations Court accused Kuscco of neglecting, failing or refusing to pay him his salary and other benefits. These included a Sh6 million salary, Sh200,000 security allowance, Sh100,000 entertainment allowance, and Sh100,000 transport allowance. He claimed that these amounts covered the period between February and March 2024.
Ototo also sought some Sh250,000 medical allowance, Sh94.5 million gratuity benefits, Sh6 million long service award benefits, and Sh12.85 million for leave days. In the court papers, Ototo he was seen to have been earning a monthly salary of Sh3 million, an annual medical benefit of Sh250,000, and a monthly security allowance of Sh100,000, a monthly entertainment allowance of Sh50,000, and a monthly transport allowance of Sh50,000.
