A financial storm is tearing through the Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco) as police intensify investigations into a multibillion-shilling scandal that has left 247 Saccos and their members staring at possible financial ruin.
Sources at Capitol Hill Police Station confirm that ten accounting department staff are under intense questioning following formal complaints from Kuscco’s legal team. Arrests are expected, with those found culpable facing a long list of serious charges — theft, destruction of evidence, concealment of records, breaches of the Data Protection Act, and other criminal offenses.
Behind the crackdown is a damning forensic audit by PricewaterhouseCoopers (PwC), which paints a picture of shocking mismanagement and alleged criminal activity under Kuscco’s former leadership. According to the audit, former managers drove the organization into insolvency to the tune of Sh12.5 billion, with total losses ballooning to Sh13.3 billion.
The most explosive revelation? KSh 5.318 billion worth of key financial records have vanished. According to Kuscco’s legal representatives Miller & Company Advocates, proof of payment and payment vouchers requested as far back as January 2025 remain missing. Evidence points to a deliberate purge — records allegedly destroyed or spirited away during the chaotic management transition.
Lawyer Cecil Miller, acting for Kuscco’s new board, has lodged a formal protest with the Directorate of Criminal Investigations (DCI), accusing employees tied to the old regime of tampering with and destroying crucial documents to cover their tracks. “These arrests and investigations mark a new chapter in Kuscco’s fight to recover the stolen billions and hold those responsible to account,” Miller said.
The union is now pressing investigators to widen the net and obtain transaction records from Co-operative Bank, Aosa Bank, Gulf African Bank, NCBA, Consolidated Bank, Sidian Bank, Family Bank, Kenya Commercial Bank, and National Bank — institutions believed to have copies of the missing documents.
The stakes couldn’t be higher. The billions in question represent deposits and savings belonging to hundreds of Saccos and thousands of ordinary Kenyans who entrusted Kuscco with their financial security. The unfolding scandal has not only exposed deep-seated rot at the heart of one of Kenya’s largest cooperative bodies but also raises urgent questions about how much more was looted — and who else is implicated.
With the investigation gathering momentum, insiders warn that the coming days could see high-profile arrests and a trail of damning evidence that could shake Kenya’s cooperative sector to its core.
