CS Chelugui Disbands KUSCCO Board.

CS Chelugui Disbands KUSCCO Board: Cooperatives and MSMEs Cabinet Secretary Simon Chelugui on Monday dismissed the Kenya Union of Savings and Credit Union (KUSCCO) board over alleged misappropriation of funds.  

Speaking on Monday, the CS remarked that the Union’s top management was unable to account for Ksh5.5 billion withdrawn from the organisation’s bank accounts between February 2013 and April  2024.

“Preliminary findings indicate systemic deficiencies in the management of resources, including, high cash withdrawals out of character with expected operations – Kshs 5,466,016,687 between February 2013 and April 2024.”

Chelugui noted that the move to disband the entire board was in an effort to ensure that the there is a culture of transparency within the sector

“The Ministry remains resolute in its commitment to fostering a culture of transparency, accountability, and ethical conduct within the cooperative sector And, in our unwavering commitment to upholding the principles of good governance in the Cooperatives sector, the board of directors of the KUSCCO Ltd, is hereby dismissed with immediate effect,”

“As custodians of Cooperatives resources, we remain steadfast in our duty to ensure responsible and transparent management for the benefit of all stakeholders,” he added.

The cabinet secretary further directed the Commissioner for Cooperatives to appoint an interim board comprising 15 members drawn from esteemed leaders of affiliate

He stated,” Cooperatives in accordance with the Cooperatives Societies Act CAP 490. I also take this opportunity to assure all the stakeholders that further investigations are ongoing and all those found culpable will face the full wrath of the law.”

KUSSCO is the umbrella body for saccos in the country and serves the roles of advocacy and representation for Kenyan Saccos.

Additionally, as part of its mandate, the Union also offers saccos and other cooperatives financial and technical assistance

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