Kenya: Medics Sacco KMA to Write Off Sh525mn At Kuscco

7 April 2025
Capital FM (Nairobi)
By Kevin Rotich

Nairobi — The Kenya Medical Association Regulated Non WDT Sacco Limited (KMA) plans to write off Sh525 million in shares held at the Kenya Union of Savings and Credit Cooperatives (Kuscco), which is currently facing financial challenges after billions of shillings were lost under unscrupulous circumstances.

KMA's investment in Kuscco comprises Sh519.2 million (special deposits) and Sh6.8 million (Jungu Kuu savings).

An audit done by PricewaterhouseCoopers (PwC) uncovered gross errors in Kuscco's financial dealings, leading to a loss of over Sh12 billion.

It included non-performing loans totaling Sh3.7 billion, overstated profits of nearly Sh798 million over the last six years, irregular commissions amounting to Sh2.7 billion, and mismanagement of the central finance fund to the tune of Sh1.3 billion.

Already, former top officials at the Sacco allegedly implicated in the mismanagement of the Sacco are being investigated for the losses.

"With KUSCCO Limited having been declared insolvent, the Board of Directors has considered and made a provision for impairment on the Sacco's Special deposit of Kshs 519,197,175 and the Jungu savings amount of Kshs 6,796,307 held at KUSSCO Limited for a period of 10 to 15 years with a value of Kshs 35,066,232 being impaired in the financial year 2024," the Sacco announced in its latest financial statement ending December 2024.

"An impairment provision of 1% of the Sacco's other cash and cash equivalents as at 31st December 2024 has been made at a rate of 1% (Kshs 16,560,644) of the entire other cash and cash equivalents value of Kshs 1,656,064,389)."

To recover lost funds and strengthen the cooperative sector, the government took control of Kuscco lending arm.

Last month, Cabinet Secretary for the Ministry of Cooperatives and MSMEs Development Wycliffe Oparanya assured the public of the government's commitment to resolving the financial irregularities and restoring confidence in the cooperative movement.

"We reviewed and obtained a certificate of Balance from KUSCCD Limited to confirm on the accuracy of the reported balance," KMA states.

"Even though the certificate of balance shows the total deposits and savings amount as Kshs 525,197,175, we consider the reported balance as unrealizable hence the need to have the amount impaired as per the International Financial Reporting Standards (IFRS 9) and the Sacco Societies Act, No. 14 of 2008."

Read the original article on Capital FM.

Tagged:
Copyright © 2025 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.