A meeting organized by the beleaguered Kenya Union of Savings and Credit Cooperative Society (KUSCCO) erupted into chaos yesterday as Sacco leaders demanded the immediate return of their members’ funds. The uproar followed revelations from a Grant Thornton audit, which uncovered widespread financial mismanagement and manipulation of records, resulting in a staggering loss of Sh6 billion.
Tensions ran high as Sacco leaders confronted KUSCCO officials, accusing them of gross negligence and involvement in the financial irregularities and illicit withdrawals. The leaders were outraged, alleging that KUSCCO’s management was complicit in the massive depletion of members’ savings.
Many leaders dismissed the meeting as a “PR stunt” and called for concrete answers and swift action to hold those responsible accountable. They demanded full disclosure of the union’s assets, especially given reports of diminishing resources, and questioned KUSCCO’s source of income.
There were accusations of lavish spending by KUSCCO staff at the expense of Sacco members, leading to calls for greater transparency regarding the union’s operational costs and suggestions for restructuring, including reducing staff numbers.
“KUSCCO is asking members to accept the situation as it is while 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’s revelation, Sacco leaders have yet to recover the lost funds. KUSCCO officials are working with agencies to investigate the loss but have acknowledged that the union lacks the funds to compensate affected members. They also cited internal management failures as a cause of the irregularities.
Principal Secretary Patrick Kilemi, from the State Department for Cooperatives in the Ministry of Cooperatives and Development, addressed the meeting with a stern warning to KUSCCO’s leadership. “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,” Kilemi stated.
