Savings and credit cooperatives with investments in the troubled Kenya Union of Savings and Credit Co-operatives (KUSCCO) Limited have been advised to amend their books to accommodate losses.
Co-operatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya says the money lost in KUSCCO’s investments might not be recovered and already talks with banks to rescue some saccos have started.
Cooperatives Cabinet Secretary Wycliffe Opranya has handed over Kenya Union of Savings and Credit Co-operatives forensic audit report to the national police service for further investigation and prosecution.
According to forensic audit, KUSCCO’s top management misappropriated Ksh 13.7 billion. The audit by PriceWaterHouseCoopers shows that top executives misappropriated non performing loans worth Ksh 3.7 billion and overstated profits by Ksh 797.9 million over six years period.
There was also irregular payment of commissions worth Ksh 2.7 billion among other economic offences.
Affected Saccos have been advised to spread their recovery over the years to cushion them from financial shocks.
Talks are ongoing with banks to bail out some affected saccos. In a raft of regulatory measures KUSCCO mandate has been limited to advocacy and capacity building.
