The Kenya Union of Savings and Credit Cooperatives (KUSCCO) has paid Saccos a total of Sh369.3 million in compensation. These funds have been paid out following a decision by the troubled cooperative to offload some of its assets.
The amount follows the latest payout which amounted to Sh152.4 million. Initially, Saccos union had paid out Sh216.9 million. This amount was paid out last year. KUSCCO is aiming to recover and payout at least 70 percent of the Sh8.8 billion principal amount that Saccos had invested in it.
The Saccos union 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.
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In August 2025, it emerged that about 150 Saccos had now shut down or gone dormant after taking Sh1.33 billion belonging to the KUSCCO. In an effort to recover the funds, Kuscco 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 said, 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 said 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 said 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.
