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• Thu Apr 17 2025

The government fired the former management of the Kenya Union of Savings and Credit Co-operatives (KUSCCO) over mismanagement of members' funds

A forensic audit conducted by the Ministry of Cooperatives showed that the Sacco umbrella body lost about KSh 13 billion in fraud

Co-operatives and MSME Development Cabinet Secretary (CS) Wycliffe Oparanya appointed a new board to fastrack the recovery of the funds

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

The government has appointed a new board to head the Kenya Union of Savings and Credit Co-operatives (KUSCCO).

Co-operatives and MSME Development CS Wycliffe Oparanya speaking at a past event. Photo: Wycliffe Oparanya.

Source: Twitter

This followed a KSh 13 billion scandal that saw the state fire former KUSCCO management.

A forensic report conducted by PwC through the Ministry of Co-operatives and MSME Development indicated how the axed management defrauded the Sacco umbrella body through false financial reporting.

What's the mandate of new KUSCCO board

Co-operatives and MSME Development CS Wycliffe Oparanya appointed new board members after the term of the interim board picked in May 2024 ended.

"The Ministry of Cooperatives and MSMES Development has appointed a new two-year-term Board of Directors for the Kenya Union of Savings and Credit Cooperatives (KUSCCO). The term of the previous Board, which began on May 1, 2024, was for one year," read part of a statement from the Ministry, date Wednesday, April 16.

Oparanya said the new board will revitalise and ensure the stability and growth of KUSCCO in line with the cooperative sector reforms.

The CS applauded the previous board, saying it achieved its terms of reference, which included:

Developing and implementing the recovery strategy of the union

Reconstructing books of account to reflect a true and fair view of the union affairs

Overseeing the completion and implementation of the statutory and forensic audits

Amending the union bylaws to incorporate recommendations of the recovery strategy

The new board will be tasked with:

Restructuring the organisation to enhance efficiency and governance

Recovering assets to safeguard the interests of cooperative members

Preparing KUSCCO for its transition into a Federation

Who are the newly appointed KUSCCO board members

The new board members include:

Kenya National Police DT Sacco National Chairman David Mategwa speaking at a past event. Photo: Kenya National Police DT Sacco.

Source: UGC

Mr. David Mategwa, the National Chairman of the Kenya National Police DT Sacco Ms. Jennifer Mburu, the National Vice Chairperson of Mhasibu Sacco Mr Robert Njue, Board Director - Winners Sacco Mr Osmane Khatolwa, Board Director - Stima DT Sacco Mr John Ziro, Board Director - Imarika DT Sacco Mr Philip Rirei, Board Director - Noble Sacco Mr Michael Muriithi, Board Director - Unaitas Sacco Ms Priscilla Maranga, Board Director - Representative, Office of the Commissioner Dr Brenda Obondo, Board Director - KMA Sacco Ms Mary Kweyu, Board Director - IG Sacco Dr Charles Kioko, Board Director - GDC Sacco

How govt handled KUSCCO fraud case

In February 2024, the government arrested four suspects linked to the Kenya Union of Savings and Credit Cooperatives (KUSCCO) Ksh 13 billion scandal

The four included KUSCCO former KUSCCO National Chairman George Magutu and George Ochola Owino former finance manager

The suspects were charged with conspiracy to defraud contrary to Section 317 of the Penal Code.

Source: TUKO.co.ke