On Tuesday, the Cabinet Secretary for Cooperatives and Micro Small and Medium Enterprises Development, Simon Chelugui, inaugurated the interim board of the Kenya Union of Savings and Credit Cooperative (KUSCCO) Limited.
This move swiftly followed the removal of the previous administration, as the CS cited “administrative and financial malpractices” that led to significant losses totaling Ksh.5.5 billion from questionable withdrawals.
According to Chelugui, the interim management team will serve for a period of one year. He emphasized the need for the new KUSCCO leadership to focus on reconstructing the Union’s financial records to accurately reflect its affairs.
“This will form the basis of the accurate and acceptable opening balances of the Union’s records,” noted Chelugui.
The interim team is tasked with facilitating transparent and fair elections of delegates and the board across the country. The Ministry has also commissioned a comprehensive audit of the Union’s operations and financial records by Grant Thornton to assess the extent of losses and misappropriated funds.
Chelugui urged the 15-member team to provide direction, oversight, and ensure necessary corrections. He assured support from the Ministry, promising to hold accountable those who betray trust.
The interim board includes high-ranking officials from local SACCOs such as David Mategwa (Police D.T), Joel Gachari (Mwalimu), Osman Khatolwa (Stima D.T), Jeniffer Mburu (Mhasibu), and others.
Additionally, the CS revealed plans to appoint a technical committee of select CEOs to assist the board in fulfilling its mandate effectively.
