Top bosses at the Kenya Union of Savings and Credit Cooperative Society (KUSCCO) stole Sh. 588 million every year for over tens years.
According to a report that appeared in the Daily Nation on Tuesday, between February 2013 and April 2024, these top KUSCCO bosses at the union took away a total of Sh. 6.56 billion.
Currently, KUSSCO has a membership of about 4,268 Saccos and holds deposits that total an estimated Sh. 18.9 billion.
The report in the daily stated that the money was carted away through transactions that included transfer of money to personal accounts and unsupported loans.
Cash withdrawals amounted to Sh. 5.46 billion, Cash to the company secretary at KUSCCO housing was Sh. 318.16 million, loan to the managing director was Sh. 50 million, and loan to the company secretary was Sh. 4.5 million.
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There was also Sh. 7 million that was processed for head of KUSCCO housing, double purchase of LR 23269/35 parcel of land at Sh. 80.55 million, and Sh. 118 million cash transfer to staff. There was also a Sh. 434.16 cash transfer to insurance agencies, Sh. 67 million cash transfer to managing director, and a Sh. 15.9 million cash transfer to a staff member.
According to CS Chelugui, cash transfers to some insurance agencies were disguised as payments of commission for services rendered to insurance services.
This audit was carried out by Grant Thornton. Following these findings, the Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui has dismissed the KUSCCO board of directors.
The audit found that some Sh. 200 million cash bad been transferred from KUSCCO accounts to staff accounts and inter-subsidiary cash transfers. At the same time, KUSCCO opened for KUSASA with the customers’ cheques received at KUSASA being endorsed and deposited at the KUSCCO account for clearing.
“It has come to light that despite incurring losses, the union proceeded to declare bonuses, dividends and interest a practice that cannot be condoned,” CS Chelugui added
