Stima DT Sacco Writes Off Ksh108M in KUSCCO Investment Loss

Stima DT Sacco has recorded a full loss of Ksh 108 million linked to its investment in the Kenya Union of Savings and Credit Co-operatives (KUSCCO), following revelations of financial and governance failures at the umbrella body.

The Sacco confirmed that the amount has been completely impaired, meaning it no longer expects to recover the funds.

In its financial disclosures, the Sacco stated that the investment had lost value due to irregularities uncovered at KUSCCO. It explained that the decision to recognise the loss was based on a review of the recoverable amount after the audit findings. The Sacco also indicated that its equity stake in the union has similarly been written down to zero.

“The impairment was recognised due to ongoing financial and governance irregularities that significantly reduced the recoverable value,” the Sacco said.

The development follows a forensic audit that exposed serious weaknesses in KUSCCO’s management, including poor internal controls, questionable transactions, and inconsistencies in financial records. The findings raised concerns about the handling of funds belonging to member Saccos across the country.

At the same time, LSK Sacco confirmed that it withdrew from its investment after identifying irregularities. The Sacco said it has already recovered part of its money but is still seeking the remaining balance.

“After discovering irregularities, the Board acted swiftly to protect members’ interests by terminating the investment. Ksh 42.18 million was recovered, leaving an outstanding Kshs 19.25 million yet to be refunded,” the Sacco said.

The KUSCCO situation has affected several cooperatives that had placed deposits or equity investments with the umbrella body. Many have since adjusted their books to reflect potential losses while recovery efforts continue.

The audit findings have also intensified calls for stronger oversight and tighter financial controls within the cooperative sector to prevent similar cases in the future.

Authorities have emphasised the need for improved governance structures, clearer accountability mechanisms, and closer supervision of institutions handling member savings.