- KUSCCO set for rebranding as KEFESCO under restructuring plan
- Government moves to address union’s financial crisis
- Shareholders to discuss KUSCCO’s future on August 28
The Government is planning to rename the Kenya Union of Savings and Credit Cooperatives (KUSCCO) to the Kenya Federation of Savings and Credit Cooperatives (KEFESCO) as part of efforts to restructure the organisation following a financial crisis that left Saccos with billions of shillings in losses.
Cooperative Development Commissioner David Obonyo announced the proposed name change in a notice to KUSCCO shareholders ahead of a special general meeting scheduled for August 28, 2026.
The meeting will receive a report from the board on the status of the union and consider other matters relating to its operations.
“Pursuant to the provisions of Sec. 27 (8) of the Cooperative Societies Act, read together with rule 20(2) and rule 21(2) of the Cooperative Societies rules, the commissioner for cooperative development may convene a special general meeting of a society at which he may direct the matters to be discussed in the meeting,” Obonyo said.
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“This is therefore to notify all shareholders of Kenya Union of Savings and Credit Cooperatives (KUSCCO) Ltd that a special general meeting of the union will be held on 28th August 2026 commencing at 9.00 am at All Saints Cathedral Church Hall to discuss the following agenda. Each shareholder of the Sacco is requested to send two representatives for this meeting.”
The proposed restructuring comes after a PwC audit conducted in 2025 uncovered an estimated financial hole of between Ksh 12 billion and Ksh 13.3 billion at KUSCCO.
The losses were attributed to ghost loans, falsified commissions and executive mismanagement, raising concerns over the governance and financial management of the organisation.
Several Saccos subsequently wrote off millions of shillings they had invested in KUSCCO.
Stima DT Sacco wrote off Ksh 108 million, while Balozi Sacco and Afa Sacco wrote off Ksh 437.5 million and Ksh 361.6 million respectively.
The Government has since been overseeing efforts to address KUSCCO’s financial position and strengthen governance.
The August 28 meeting is expected to give shareholders an update on the union’s financial and operational status as the Government moves to implement the proposed restructuring under the KEFESCO name.
By Bernard Magada
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