The government has launched a formal inquiry into KUSCCO Housing Co-operative Society Limited following member complaints alleging that the society was used to siphon savings from affiliated SACCOs.
In a Gazette notice dated October 28, 2025 (No. 17555), the government directs investigators to scrutinise the society’s by-laws, financial records, and the conduct of both current and former officials.
The order was issued by Commissioner for Co-operative Development David K. Obonyo under the Co-operative Societies Act (Cap. 490).
The inquiry team — Fondo Nzovu, Assistant Commissioner for Co-operative Development, and John Kariuki Kinyanjui, Senior Co-operative Auditor — has been authorised to commence investigations within 15 days. They will summon relevant parties as needed and conduct the probe at locations they deem appropriate.
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The notice cites sections 58 and 73 of the Act as the legal basis for the investigation, while also outlining provisions on inquiry costs, surcharges, and potential offences under sections 60(1), 60(2), 94 and 73. Members and officers of the society have been directed to fully cooperate.
This comes after a petition by members alleging mismanagement and significant financial losses. The inquiry team is expected to submit its findings and recommend possible action, including surcharges or prosecution where wrongdoing is established.
By Our reporter
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