In the midst of a growing leadership struggle within the Kenya Union of Savings and Credit Cooperatives (KUSCCO), former directors who were recently ousted from office are protesting the decision and the official removal order.
The former directors who are now directors and executives in various SACCOs were removed from the KUSCCO office after the disbandment of the KUSCCO board by then Cooperatives and Micro, Small, and Medium Enterprises Development Cabinet Secretary Simon Chelugui in May last year following a preliminary examination of the union’s financial records conducted by an audit firm, which uncovered deficiencies in resource management. Subsequently, Ksh 13 billion was lost in a mega corruption at KUSCCO.
Initially, the Commissioner for Cooperative Development had issued a directive to the officials to be removed from office in connection with the KUSCCO scandal.
David Obonyo, had written to specific Saccos whose officials were elected to office to stop them from holding office.
A total of 13 SACCOs were affected. However, the order was stayed by the court.
In affidavits, one of the directors, Andrew Ayarah, dismissed the directive, stating that they can only be removed from office through by-laws by primary Saccos.
He claimed the KUSCCO scandal happened under the nose of the commissioner for cooperative development office.
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The director claimed that the commissioner’s office approved the KUSCCO audited books, and the position is captured in the books of accounts.
“In addition, the notes indicate the first respondent attends the annual delegates meeting and has never raised any issues as to actions of illegality and the need to obtain requisite licenses,” part of the affidavit read.
Recently, Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya appointed a new Board of Directors for the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The new KUSCCO Board members include National Chairperson, Kenya National Police DT Sacco David Mategwa, National Vice Chairperson, Mhasibu Sacco Jennifer Mburu, WINAS Sacco’s Robert Njue, and Stima DT Sacco’s Osmane Khatolwa.
Others appointed members are John Ziro (Imarika DT Sacco), Philip Rirei (Noble Sacco), Michael Muriithi (Unaitas Sacco), Priscilla Maranga (Office of the Commissioner), Brenda Obondo (KMA Sacco), Mary Kweyu (Invest and Grow Sacco), and Charles Kioko (GDC Sacco).
By Our Reporter
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