Nairobi — The Government plans to rename the Kenya Union of Savings and Credit Cooperatives (KUSCCO) to the Kenya Federation of Savings and Credit Cooperatives (KEFESCO) following a financial crisis that left Saccos with billions of shillings in losses.
Geographic ReferenceCooperative Development Commissioner David Obonyo announced the proposed name change in a notice to KUSCCO shareholders ahead of a special general meeting scheduled for August 28.
The meeting will also receive a report from the board on the status of the union and consider other matters concerning its operations.
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"Pursuant to the provisions of Sec. 27 (8) of the Cooperative Societies Act; read together with rule 20(2) and rule 21(2) of the Cooperative Societies rules, the commissioner for cooperative development may convene a special general meeting of a society at which he may direct the matters to be discussed in the meeting," Obonyo said.
"This is therefore to notify all shareholders of Kenya Union of Savings and Credit Cooperatives (KUSCCO) Ltd that a special general meeting of the Union will be held on 28th August,2026 commencing at 9.00 am at All Saints Cathedral Church Hall to discuss the following agenda. Each shareholder of the SACCO is requested to send (2) two representatives for this meeting."
The proposed restructuring follows a PwC audit in 2025 that uncovered an estimated financial hole of between Sh12 billion and Sh13.3 billion at KUSCCO.
The losses were linked to ghost loans, falsified commissions and what the audit described as executive mismanagement.
The financial losses forced several Saccos to write off millions of shillings invested in KUSCCO.
Stima DT SACCO wrote off Sh108 million, while Balozi SACCO wrote off Sh437.5 million and Afa SACCO Sh361.6 million, among others.
The Government has since been overseeing efforts to address KUSCCO's financial position and strengthen governance of the organisation.
The special general meeting is expected to provide shareholders with an update on the union's status as the Government moves to restructure its operations under the proposed KEFESCO name.
