NAIROBI, Kenya, Mar 17 – Stima DT Sacco has written off Sh108 million invested in the troubled Kenya Union of Savings and Credit Co-operatives (KUSCCO), citing low chances of recovery.
The Sacco said the funds have been fully impaired following governance and financial irregularities at the umbrella body.
“KUSCCO limited placement is fully impaired at Kshs 108 million,” the Sacco said.
“The impairment was recognized due to ongoing financial and governance irregularities that significantly reduced the recoverable value.”
It added that its equity investment in KUSCCO has also lost all value.
Meanwhile, LSK Sacco said it recovered part of its deposits after exiting the investment but is still pursuing Sh19.25 million.
“After discovering irregularities, the Board acted swiftly to protect members’ interests by terminating the investment. Kshs 42.18 million was recovered leaving an outstanding Kshs 19.25 million yet to be refunded,” the Sacco said.
The disclosures add to a growing list of cooperatives forced to write down investments linked to KUSCCO.
A forensic audit into KUSCCO uncovered governance failures, including falsified records and diversion of funds, leaving billions of shillings unaccounted for and triggering reforms in the sector.
