KUSCCO announces phase 1 auctioning of properties to recover Ksh 13billion lost funds

Kenya National Union of Savings and Credit Co-operatives (KUSCCO) has started auctioning houses and land of members who defaulted on mortgages after it was hit by a management scandal.

The Sacco umbrella body seeks to cut losses occasioned by years of alleged mismanagement that saw its members lose Ksh 13 billion.

Investors and home buyers through Watts Auctions are invited to the auction of multi-billion shilling house properties.

In a notice published in local dailies on Monday KUSCCO invited investors to the auction scheduled for 5th June 2025 and 13th June 2025.

KUSCCO targets to sell prime properties in several counties among them Nairobi, Kiambu, Kajiado, Kisii, Mombasa, Migori, Machakos counties.

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A forensic audit by consultancy firm PricewaterhouseCoopers (PwC) exposed massive financial irregularities at the Sacco umbrella body, including fraudulent bookkeeping, large-scale theft by executives, bribery, unauthorized bank withdrawals, and conflicts of interest in awarding contracts to firms owned by top managers.

The report indicated that manipulation of financial records was used to conceal the schemes, creating the illusion of profitability.

The audit revealed that Sh13.3 billion had been lost, leaving KUSCCO insolvent by Sh12.5 billion.

The umbrella body had collected Sh24.8 billion in deposits from the 247 saccos, funds now at risk.

By Obegi Malack

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