Restore KUSCCO’s lost glory, CS Chelugui tells interim board of directors

Cooperatives CS Simon Chelugui has challenged the interim board of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) to develop and execute a robust turnaround strategy for the body.

During the inauguration of the board on May 7, 2024, Chelugui said that his ministry is willing to support the new team in their efforts.

“We will not hesitate to hold accountable those who betray the trust placed in them,” he said.

Chelugui announced that his ministry will appoint a technical committee composed of selected executive directors to help the board carry out its mandate effectively.

The chairman of the board is David Mategwa, while the vice-chairman is Jennifer Mburu.

The board members are Mathew Ruto, Joel Gacgari, Osman Kotolwa, Robert Njue, Francis Mureithi, Julius Nzioki, Peter Ngugi, William Mbogo and Phillip Rirei.

On Monday, Chelugui sacked the board of directors of KUSCCO, the umbrella body for savings and credit cooperatives (SACCO) in Kenya, over alleged financial irregularities.

It came after a preliminary examination of the union’s financial records by audit firm Grant Thornton, which uncovered deficiencies in resource management.

Addressing the new team, the CS asked the members to ensure reconstruction of the union’s financial records to reflect the true situation.

“This will form the basis of accurate and acceptable opening balances of the union’s records,” he said.

Chelugui further asked the interim board to oversee the completion and implementation of the ongoing statutory audit.

“Amend the union bylaws to align the structure and mandate of the union to support the growth and development of the sacco sub-sector,” he urged.

The CS also acts as a board to facilitate the election of delegates and the board ensuring a transparent and fair process throughout the country.

“I cannot overstate the gravity of his appointment, which requires an unwavering commitment to the principles of corporate governance, integrity and honesty in all his endeavours,” he added.

He stressed that the role of the board is not merely administrative but also strategic leadership.

He said the board should provide direction, oversight and, when necessary, bring about corrections.

“His mandate, although limited to one year, carries the expectation of restoring confidence in the union among its members. To this end, I urge you to develop a clear roadmap based on your terms of reference, prioritizing actions that realign the union with its intended trajectory,” he stated.

He added that establishing effective board committees will be essential for efficient governance and decision-making.