Police officers from Capitol Hill Police Station have interrogated eight employees from the accounts department of the Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco) following formal complaints lodged by the union’s legal representatives.
The questioning is part of an ongoing investigation that could lead to multiple arrests of Kuscco employees implicated in a wide-ranging financial scandal. Those found culpable are expected to face charges including theft, destruction and concealment of crucial documents, violations of the Data Protection Act, and other offenses linked to the alleged loss of billions in deposits.
Lawyer Cecil Miller, acting for Kuscco’s board, accused some employees allied to the former management of deliberately destroying or tampering with records to conceal massive financial misappropriation.
“The arrests and ongoing investigation signal intensified efforts by the new management and board to recover the lost billions and ensure accountability for those responsible,” Miller stated.
The probe was sparked by a forensic audit by PricewaterhouseCoopers (PwC), which revealed that former managers rendered Kuscco insolvent by Sh12.5 billion, with total losses amounting to Sh13.3 billion. The losses have placed the savings of 247 Saccos and their members in jeopardy.
Meanwhile, Kuscco has disclosed that key financial documents relating to transactions worth Sh5.318 billion are missing, allegedly removed by former management before the transition. Efforts to obtain proof of payment and payment vouchers first requested in January 2025 have so far been unsuccessful.
According to Kuscco’s lawyers, investigators have been asked to engage several banks, including Co-operative Bank, Aosa Bank, Gulf African Bank, NCBA, Consolidated Bank, Sidian Bank, Family Bank, Kenya Commercial Bank, and National Bank, which may still hold copies of the missing records.
Kuscco has reaffirmed its commitment to work closely with authorities to recover the funds and bring those responsible to justice.
