Shareholders of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) have approved the liquidation of the troubled institution after an audit revealed liabilities of Ksh17 billion against assets of just Ksh5.4 billion.
The decision was made during a special general meeting convened by Commissioner for Co-operatives David Obonyo.
An audit by Grant Thornton found KUSCCO insolvent and estimated it would require Ksh14 billion to restore operations.
KUSCCO is also facing 291 court cases from SACCOs seeking recovery of over Ksh16 billion in deposits and interest. The current board has recovered only Ksh77 million from debtors since 2024.
Shareholders also approved the formation of the Kenya Federation of Savings and Credit Co-operatives (KEFESCCO) as a successor body.
