The Kenya Union of Savings and Credit Co-operatives (KUSCCO) has announced the appointment of a new 11-member board to lead the organization’s recovery efforts and drive its transformation into a federation. The board will be chaired by David Mategwa, the current chairman of the Kenya National Police DT Sacco, and is expected to spearhead governance reforms, enhance efficiency, recover lost assets, and safeguard the interests of Saccos across the country.
Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya lauded the move as a significant milestone in revitalising KUSCCO, which has faced a turbulent period marked by a financial loss of Ksh 13 billion in 2023. “The appointment of the new board marks a crucial step in revitalising KUSCCO and ensuring its stability and growth in alignment with the government’s cooperative sector reforms,” Oparanya said.
The newly constituted board takes over from an interim team that served for one year and was instrumental in laying the foundation for recovery. During its tenure, the interim board completed statutory and forensic audits, reconstructed the union’s financial records, and amended its bylaws to incorporate recovery strategies.
Oparanya revealed that KUSCCO has so far recovered Ksh 130 million and is working on more recoveries. He noted the ministry is exploring ways for the government and development partners to support the union, given its vital role in the cooperative sector.
As KUSCCO prepares for its transition into a federation, the government envisions it becoming an advocacy body for Saccos, playing a stronger role in policy influence and sector-wide support.
In a parallel move, Oparanya has also constituted a five-member Committee of Experts to review the Sacco Societies Act of 2008. The committee is chaired by Marlene Shiels, CEO of Scotland’s Capital Credit Union, and is tasked with proposing legal amendments to reflect emerging trends in the sector. Key proposals include the establishment of a central liquidity facility, a Sacco Deposit Guarantee Fund to protect members’ savings, and a shared legal and administrative services framework.
These reforms signal a fresh chapter for KUSCCO and the wider Sacco movement, promising greater resilience and sustainability in the cooperative finance sector.
