NAIROBI, Kenya, July 9 – Harambee Deposit Taking SACCO has written off Sh230.37 million after fully providing for unreconciled and unsupported bank account balances, while also maintaining a full impairment on Sh42 million deposited with the troubled Kenya Union of Savings and Credit Cooperatives (KUSCCO).
According to the SACCO’s audited financial statements for the year ended December 31, 2025, the Sh230.37 million relates to a bankers’ cheque control account that management said could not be reconciled or supported with sufficient documentation.
The lender also retained a full expected credit loss (ECL) provision on Sh42.02 million held as deposits with KUSCCO, with the impairment remaining unchanged from the previous financial year.
“KUSCCO deposit savings held by the Society were fully provided at an amount of Sh42,024,896 both in the current and prior year.”
“The expected credit loss allowance includes a full provision for an unreconciled and unsupported bank account balance amounting to Sh230,368,657, provided for in the earliest period as required by IAS 8.”
The disclosures highlight the continued financial impact of KUSCCO’s governance crisis, which has forced many SACCOs to reassess the recoverability of funds invested with the umbrella body.
Despite the significant provisions, Harambee DT SACCO reported stronger financial performance during the year. Total assets increased to Sh41.29 billion from Sh37.63 billion in 2024, while its net loan book rose to Sh34.28 billion.
The SACCO also posted a higher surplus after tax and maintained capital adequacy ratios above several regulatory thresholds, although it acknowledged that some prudential ratios still require improvement.
KUSCCO has been at the centre of one of Kenya’s biggest cooperative sector scandals after a forensic audit uncovered alleged misappropriation of members’ funds, falsified financial statements and weak internal controls that resulted in estimated losses of about Sh13 billion.
The findings prompted regulators and law enforcement agencies to launch investigations, with dozens of SACCOs subsequently recognising expected credit losses under IFRS 9 due to uncertainty over the recovery of their deposits.
Although the government has appointed a new board and management to oversee KUSCCO’s recovery, many SACCOs continue to maintain full provisions against their exposures pending progress in asset recovery and compensation efforts.
