Cooperatives and MSMEs Cabinet Secretary Simon Chelugui on Monday dismissed the Kenya Union of Savings and Credit Union (KUSCCO) board over alleged misappropriation of funds.
Speaking on Monday, the CS remarked that the Union’s top management was unable to account for Ksh5.5 billion withdrawn from the organisation’s bank accounts between February 2013 and April 2024.
“Preliminary findings indicate systemic deficiencies in the management of resources, including, high cash withdrawals out of character with expected operations – Kshs 5,466,016,687 between February 2013 and April 2024.”
Chelugui noted that the move to disband the entire board was in an effort to ensure that the there is a culture of transparency within the sector.
“The Ministry remains resolute in its commitment to fostering a culture of transparency, accountability, and ethical conduct within the cooperative sector,” he remarked.
KUSSCO is the umbrella body for saccos in the country and serves the roles of advocacy and representation for Kenyan Saccos.
Additionally, as part of its mandate, the Union also offers saccos and other cooperatives financial and technical assistance.
Further, the union details that the financial and technical assistance are tailored to largely benefit the middle and low income earners both in Kenya’s rural and urban areas.
The Saccos’ umbrella body has been on the spotlight since November 2023, for suspicious activity.
In a probe instituted during the same period, KUSSCO was under investigation for the operation of unlicensed saccos since October 2023.
As more questions regarding the union’s management continued to emerge, the Sacco Societies Regulatory Authority (SASRA) received a letter from Chelugui requesting the Union to be probed.
However, the Union’s top bosses were stated to have denied the allegations of running an illegal Sacco at the time.
Source: kENYANS.CO.KE
