The Kenyan government has initiated a liquidation process of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) assets as part of efforts to recover misappropriated funds. This move comes alongside broader reforms aimed at strengthening the cooperative sector and preventing future financial mismanagement.
Cooperatives Cabinet Secretary (CS) Wycliffe Oparanya announced that the Cabinet has approved the formation of a nine-member board to oversee KUSCCO’s revival. Additionally, a committee of experts will be appointed to review the SACCO Societies Act to ensure greater accountability and regulatory oversight.
Among the assets set for liquidation are company vehicles, which have already been sold, as well as investments in housing. Despite these efforts, the Ministry remains cautious about the timeline for financial recovery. According to CS Oparanya, SACCOs may take at least two years before they start receiving any substantial financial relief. However, he confirmed that small savers have already been refunded Ksh.136 million.
Although Oparanya has assured that no funds were lost in the recovery process, he emphasized the government’s commitment to holding those responsible for the financial misappropriation accountable. “As long as you are alive, we will pursue you,” he stated, signaling a tough stance on financial malpractice.
The government has managed to reconstruct KUSCCO’s books of accounts, paving the way for further financial recoveries. Moving forward, KUSCCO will be restricted to advocacy as its primary role, with discussions underway on whether to sell off its insurance business.
To prevent future financial irregularities, the Ministry has pledged to implement comprehensive reforms, including strengthening the regulatory framework under the SACCO Societies Regulatory Authority (SASRA). These measures will ensure tighter oversight of the sector, which currently holds over Ksh.1.2 trillion in savings, with an asset base of Ksh.1.8 trillion and a loan book exceeding Ksh.1 trillion—representing about 30 percent of Kenya’s GDP.
The ongoing reforms signal the government’s determination to restore confidence in the SACCO sector and protect the financial interests of millions of Kenyans who rely on cooperative savings and credit services.
