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Kenya Union of Savings and Credit Co-operatives Society (Kuscco) Ltd faces investigation for allegedly engaging in illegal deposit-taking business.

Cabinet Secretary for Co-operatives and Micro Small and Medium Enterprises (MSMEs) Development Simon Chelugui (pictured) has directed Sacco Societies Authority (Sasra) to undertake inspection of the society’s books, accounts and records in accordance with provisions of current legislations governing savings and credit co-operatives (Saccos).
Available information

The directive to investigate the umbrella body for Saccos, Chelugui said followed information made available to the ministry from other quarters and submissions shared by Sasra.

“I note with concern that from available information and from your extensive correspondence with its management, the Kuscco Ltd appears to be carrying out and or undertaking regulated Sacco businesses without being licensed and or authorised to do so as required by the provisions of the Sacco societies Act No. 14 of 2008 and the regulations made thereunder,” he stated.

Chelugui’s concerns are contained in a letter addressed to Sasra chief executive Peter Njuguna dated October 5, 2023.

“Regulated Sacco business as prescribed by law entails either deposit taking Sacco business which must be licensed or specified non-deposit taking business which must be authorised,” he said.

The Cabinet Secretary is empowered under Section 49 of the Sacco Societies Act 14 of 2008 to direct Sasra to conduct inspection or cause to be conducted an inspection of any Sacco society and of its books, accounts and records.

He added: “Consequently, I hereby direct the authority to conduct an inspection of the said Kuscco and its books, accounts and records in accordance with the requirements of the provisions of the Sacco Societies Act No.14 of 2008 as read together with the provisions of the Cooperative Societies Act as applied thereto by dint of Section 67 of Sacco Societies Act No. 14 of 2008.”