An audit report into the Kenya Union of Savings and Credit Cooperatives (Kuscco) reveals how the organisation dished out loans to Saccos and senior staff without evidence of their ability to repay.
The audit by PricewaterhouseCoopers (PwC) shows by December 2023, the Sacco umbrella body had accumulated non-performing loans (NPLs) of Sh5.3 billion.
This was 60 per cent of the Sh9 billion outstanding loans at the time.
In one instance, an employee was issued with a Sh2 million facility while he had just Sh17,000 in savings, raising questions if due diligence was being undertaken before approval.
