KUSCCO staff pin hopes on new federation amid uncertainty

• KUSCCO employees face an uncertain future after liquidation.
• Years of financial troubles have already cut the workforce sharply.
• Workers hope a new federation will rebuild trust and stability.

The decision to dissolve the Kenya Union of Savings and Credit Co-operatives (KUSCCO) has also cast a shadow over its employees, many of whom are reportedly distressed by the prospect of losing their livelihoods following the resolution to liquidate the umbrella organisation.

Workers describe end of an era

Employees who spoke about the development said the collapse of KUSCCO represents not only the end of an institution that had served the co-operative movement for decades, but also the loss of jobs and livelihoods for workers who had dedicated years of their careers to the organisation.

According to the employees, KUSCCO once had a workforce of about 234 employees. However, by the time the resolution for liquidation was reached, the number had already fallen significantly, with only a small proportion of the original workforce remaining.

They said some employees had resigned as the organisation’s financial and operational difficulties deepened, while others had opted for early retirement. Those who remained now face an uncertain future as the liquidation process gets underway.

Disappointment over how far things fell

The employees expressed disappointment that an institution established to serve as a national umbrella for the savings and credit co-operative movement could reach a point where liquidation became the preferred option.

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They, however, expressed hope that the proposed Kenya Federation of Savings and Credit Co-operatives (KEFESCCO) would provide a stronger and more sustainable platform capable of adequately representing and protecting the interests of the wider co-operative movement.

A lesson for the sector

For the employees, the KUSCCO experience should serve as a lesson to the co-operative sector. They argued that any successor institution must be built on sound governance, financial accountability, professional management and effective protection of members’ and employees’ interests.

The human cost of the KUSCCO collapse therefore extends beyond the financial losses facing member societies. Behind the balance sheets, court proceedings and liquidation notices are workers who have lost employment, families whose incomes have been disrupted and professionals who had expected to build their careers within an institution established to strengthen Kenya’s co-operative movement.

The liquidation could thus mark not merely the closure of an organisation, but the beginning of a difficult reckoning for the entire movement over how its umbrella institutions should be governed, supervised and held accountable.

By Xavier Lugaga

Former Cooperative Officer and reputable journalist