According to the Sacco Societies Regulatory Authority (SASRA), legal and policy lacunas are to blame for the billions in losses at the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
According to the Sacco regulator, its members have lost Ksh14 billion, which could have been stopped nearly three years ago.
The body says that disparities in policy and the slow pace of developing new policies created a loophole for KUSCCO to continue operating, a factor that has resulted in the loss of 10 per cent of core capital in 201 Saccos in the country.
An attempt to change the laws initiated in 2022 could have saved billions of shillings, according to the regulator.
