mburu jeff 
Wycliffe Oparanya, Cabinet Secretary,Ministry of Cooperatives and MSMEs Development
The Kenya Medical Association Regulated Non WDT Sacco Limited (KMA) is set to write off Sh525 million in shares tied to the Kenya Union of Savings and Credit Cooperatives (Kuscco), which is currently struggling with financial difficulties after suffering significant losses in questionable transactions.
KMA’s stake in Kuscco consists of Sh519.2 million in special deposits and Sh6.8 million in Jungu Kuu savings.
A recent audit by PricewaterhouseCoopers (PwC) revealed serious discrepancies in Kuscco’s financial dealings, leading to a staggering loss of over Sh12 billion.
This includes non-performing loans totaling Sh3.7 billion, inflated profits of nearly Sh798 million over the past six years, irregular commissions amounting to Sh2.7 billion, and the misappropriation of Sh1.3 billion from the central finance fund.
Investigations are already underway for former top Sacco officials who are allegedly involved in the mismanagement that led to these losses.
“As KUSCCO Limited has been declared insolvent, the Board of Directors has accounted for and made provisions for the impairment of the Sacco’s Special deposit of Kshs 519,197,175 and the Jungu savings balance of Kshs 6,796,307 deposited with KUSSCO Limited for 10 to 15 years, which has a value of Kshs 35,066,232 impaired during the financial year 2024,” the Sacco noted in its latest financial statement for the period ending December 2024.
The sacco further said that a provision for impairment of 1% of the Sacco’s other cash and cash equivalents as of December 31, 2024, has been established at a rate of 1% (Kshs 16,560,644) of the total other cash and cash equivalents valued at Kshs 1,656,064,389).
To recover the lost funds and stabilize the cooperative sector, the government has taken control of Kuscco’s lending operations.
Earlier, Wycliffe Oparanya, the Cabinet Secretary for the Ministry of Cooperatives and MSMEs Development, assured the public that the government is committed to addressing the financial irregularities and restoring trust in the cooperative movement.
This substantial loss has caused a major impact, raising concerns about the potential for even greater losses across the sacco sector.
