In a bold move aimed at reviving the Kenya Union of Savings and Credit Cooperatives (KUSCCO) and restoring trust among its members, the Cabinet Secretary for MSMEs Development, Hon. Simon Chelugui, announced the establishment of an interim Board. The Board, tasked with navigating the union out of its recent fiscal turmoil, is set to spearhead a comprehensive recovery plan and oversee crucial audits and reviews.
During the inauguration ceremony, CS Chelugui emphasized the government’s commitment to supporting the cooperative movement, underscoring the pivotal role of the interim Board in restoring confidence within the union and its affiliates. He stressed that success would be gauged not only by achieving milestones but also by inspiring trust and confidence.
“Your success will be measured not only by the milestones you achieve but by the trust and confidence you inspire within the union and the broader cooperative movement,” Mr Chelugui said.
Arnold Munene, the Acting Managing Director of KUSCCO, welcomed the appointment of the interim Board, highlighting the importance of diverse perspectives in steering the union towards profitability. He reaffirmed the cooperative’s commitment to its members, emphasizing that unity and collaboration were essential for collective success.
“We look forward to working with the new board and integrating as many diverse perspectives as possible as we deliver on our promises to our members,” Mr Munene said. He continued and said that as a union, ”We have always maintained that KUSCCO belongs to us and nothing personifies this more than the composition of the interim Board, where membership has been drawn from our affiliates.” He urged the movement to continue working with the union since advising a strong union benefit everyone.
Comprising members from prominent SACCOs across Kenya, the interim Board boasts a wealth of experience and expertise. Led by Chairman Mr. David Mategwa of Kenya Police DT Sacco and Vice Chairperson Ms. Jenifer Mburu of Muhasibu NWDT SACCO, the Board is poised to initiate strategic interventions to stabilize KUSCCO’s financial position.
Speaking on behalf of the Board, Mr. Mategwa expressed eagerness to undertake the formidable task of restoring KUSCCO to its former glory. He emphasized the union’s legacy of excellence and pledged to leverage strategic interventions to stabilize its financial standing and continue serving members effectively.
“It is a great honour to have the opportunity to serve our movement in this capacity. Our union has a storied history and track record of excellence over the past 50 years, and with the right interventions, we are confident that we can stabilize its financial position and continue serving our members and the movement at large, as per our mandate,” Mategwa said.
In addition to the interim Board, a seven-member Tactical Committee comprising CEOs from various SACCOs was announced. Tasked with providing specialized support, the committee aims to bolster the leadership’s efforts in navigating the union through its current challenges.
The appointment of both the interim Board and the Tactical Committee comes in the wake of a thorough internal review of KUSCCO’s finances over the past five years. In a statement, KUSCCO emphasized its commitment to upholding responsible corporate governance and vowed to address any loopholes that could potentially lead to financial misconduct.
“We are focused on rebuilding trust with our clients by upholding the principles of a responsible corporate governance in the day to day running of our activities, and by sealing gaps in our management framework that could encourage financial malfeasance in the future.” He stated.
The union stressed on following due legal and administrative processes to ensure that the central finance fund (CFF) is regulated in the shortest time possible.
As the union embarks on this journey of revitalization, stakeholders remain hopeful that these remedial measures will pave the way for a stronger, more resilient KUSCCO, dedicated to serving the interests of its members and the broader cooperative movement.
