Saccos hit at Kuscco over lost savings

A meeting organised by the embattled Kenya Union of Savings and Credit Cooperative Society (KUSCCO) yesterday descended into chaos as Sacco leaders demanded the immediate return of their members’ funds.

The uproar followed revelations from a Grant Thornton audit, which exposed widespread financial mismanagement and manipulation of records, resulting in a staggering loss of Sh6 billion.

Tension filled the room as angry Sacco leaders confronted union officials, accusing them of gross negligence that led to the massive depletion of members’ savings. Many leaders directly blamed KUSCCO’s management, alleging their involvement in the financial irregularities and complicity in the illicit withdrawals.

Talks termed PR stunts

Dissatisfied with what they called a “stunt to save face,” the Sacco leaders demanded concrete answers from the union and called for swift action to hold those involved accountable. They also demanded full disclosure of the union’s assets, especially in light of reports of diminishing resources.

The leaders further questioned KUSCCO’s source of income, accusing its staff of lavish spending at the expense of Sacco members. They called for transparency regarding the union’s daily operational costs and suggested a complete restructuring, including reducing staff numbers.

“KUSCCO is asking members to accept the situation as it is while also urging them to continue saving. What are we supposed to tell our members when they start demanding their money back? Despite organizing this meeting, the union has failed to address the core issue or provide any assurance that the money will be refunded,” said Christopher Wainaina, chairman of PCEA Ruiru Sacco.

Despite calls for action since the audit revelation, Sacco leaders are yet to recover lost funds. KUSCCO officials are working with agencies to investigate the loss but acknowledged that the union lacks the funds to compensate affected members. They also blamed internal management failures for the irregularities.

Principal Secretary, State Department for Cooperatives in the Ministry of Cooperatives and Development Patrick Kilemi, who spoke at the meeting, issued a stern warning to KUSCCO’s leadership, insisting that all those responsible must be held accountable.

“Cooperatives cannot be destroyed by the actions of a few individuals. I urge all institutions to elect leaders who can be trusted, as leadership directly impacts the future of the cooperative and its members,” said Kilemi.