NAIROBI, Kenya, Mar 6 – The Regulatory Benefits Authority (RBA) will continue to monitor the KUSCCO Mutual Assurance Limited (KMAL) amid financial losses at the parent company Kenya Union of Savings and Credit Co-operatives (KUSCCO).
RBA Supervision Directorate Director Jackson Nguthu, however, said that there is no need for concerns, as KMAL is duly registered and no regulatory complaints have been filed against it so far.
“KMAL is licenced by IRA as an insurer. As a registered administrator by RBA, the licensee meets the registration requirements,” Nguthu said.
“As an administrator, RBA continues to monitor the licensee as an administrator. IRA continues to monitor financial status and operations (at) KMAL as the primary regulator. Nothing has been brought to our attention that there are regulatory concerns,” he added.
This comes after RBA recently listed registered pension administrators in Kenya, including KMAL, whose parent company KUSCCO lost billions of shillings.
It came after an investigation by PWC uncovered widespread fraud that saw Saccos in the country lose funds amounting to over Sh12 billion through document forgery and financial misstatements.
As a result, various Saccos were forced to write off investments held at KUSCCO.
For example, Mhasibu Regulated DT Savings and Credit Co-operative Society, in its 2024 annual financial report, wrote off a Sh13 million investment in KUSCCO shares.
LSK Sacco was also affected by KUSCCO’s financial mismanagement. It reported that while it had maintained a relatively low investment in KUSCCO, amounting to Sh61.4 million, the scandal has still resulted in significant losses.
“KMAL has Sponsored an Individual Pension scheme and an Umbrella scheme, whose membership is drawn from different institutions not limited to Saccos. Total pension assets under management as at 31st December 2024 was about Ksh 70 M.”
