TUKO.co.ke journalist Wycliffe Musalia has over six years of experience in financial, business, technology, and climate reporting, which offers deep insights into Kenyan and global economic trends.

Kenya Union of Savings and Credit Cooperative (KUSCCO) member SACCOs have no hopes of recovering their money.

The government launched investigations into the KSh 13 billion KUSCCO fraud after Cooperatives CS Wycliffes Oparanya submitted the forensic report to the investigative agencies.

According to the PwC forensic report, the fraud was achieved through loans worth millions of shillings, which were 'audited and signed by a dead auditor'.

It showed that about 247 SACCOs have deposited billions in the advocacy body, which stands at risk.

Cooperatives Commissioner David Obonyo argued that SACCOs have about KSh 8 billion in deposits, with the rest being interest earned from the union.

According to the Sacco Society Regulatory Authority (SASRA), SACCOs may not recover all their assets in the umbrella body.

SASRA Chief Executive Officer (CEO) Peter Njuguna explained the recommendations issued to member cooperatives on the provisioning of savings to prepare them for some or no recovery at all.

Njuguna noted that the asset recovery process has identified some KSh 5 billion which may not be enough since SACCOs have saved over KSh 8 billion in KUSCCO.

"For a write-off you need to provide first, and this needs members' approval in the case of SACCOs. It means forgetting that you ever invested the money.

"Should anything be recovered, however, little there can be mechanisms to write that back. So it is not all that is lost. They can recover something, but not 100%. The available assets to be recovered are about KSh 5 billion, yet we are talking of more than KSh 8 billion of investment," said Njuguna.

In February 2025, CS Oparanya urged all affected SACCOs to make provisions in the statements of accounts.

Most cooperative societies provisioned millions of shillings in KUSCCO shares and deposits following the directive.

SACCOs that provisioned huge amounts of money include IG Sacco (KSh 568.66 million), Tembo Sacco (KSh 115.83 million), Ushuru Sacco (KSh 7.7 million) and Stima Sacco (KSh 108 million).

All SACCOs in the country are registered and regulated by the Sacco Societies Regulatory Authority (SASRA), which is a key factor to consider while joining.

The government arrested all individuals suspected in the KSh 13 billion KUSCCO scandal, including the former chairman and managing director.

The forensic audit conducted on KUSCCO accounts showed excessive transfers of money, withdrawals, and irregular transactions by the union.

Source: TUKO.co.ke