Government Establishes Board to Revive KUSCCO Amid Asset Liquidation Efforts

The Kenyan government has announced the formation of a nine-member board aimed at revitalizing the Kenya Union of Savings and Credit Cooperatives (KUSCCO).

This initiative comes following the Cabinet’s approval of a committee of experts led by Cooperatives Cabinet Secretary Wycliffe Oparanya to review the SACCO Societies Act.

In a significant move, the government has initiated the liquidation of KUSCCO assets to recover some of the funds misappropriated within the institution. Among the assets slated for liquidation are company vehicles and various housing investments, with some vehicles already disposed of.

Despite these efforts, the Ministry has indicated limited optimism regarding the recovery process. “Small savers have already been refunded Ksh. 136 million,” noted Oparanya, who emphasized that no funds were lost during this process. However, he reassured that the government remains committed to pursuing individuals involved in the misappropriation, stating, “As long as you are alive, we will pursue you.”

The government reports that it has made progress in reconstructing KUSCCO’s financial records, paving the way for further recoveries. Oparanya also indicated that going forward, KUSCCO will focus solely on advocacy as its core function. He mentioned that the performance of the insurance business will be under review, with potential plans for its sale.

To prevent future discrepancies, the Ministry plans to implement reforms that will close legal gaps, thereby enabling the Sacco Societies Regulatory Authority (SASRA) to exercise better oversight.

Oparanya hinted at tighter regulations for the cooperative sector, which oversees over Ksh. 1.2 trillion in savings and holds assets totaling Ksh. 1.8 trillion, with a loan portfolio exceeding Ksh. 1 trillion—accounting for about 30% of Kenya’s GDP.