NAIROBI, Kenya, Jan 28 – Tower Sacco has disclosed that it lost Sh149.5 million in cash deposits held at the financially troubled Kenya Union of Savings and Credit Cooperatives (KUSCCO) last year.
In its 2025 financial statements, the sacco reported that it had Sh112.5 million deposited at KUSCCO in 2024.
Several Kenyan Saccos were affected after a forensic audit uncovered widespread financial mismanagement at KUSCCO, involving billions of shillings in irregular loans and undisclosed deposits.
A PricewaterhouseCoopers (PwC) audit revealed that about Sh13.3 billion was lost through fraud, embezzlement and financial mismanagement at KUSCCO.
The report, which followed a forensic audit commissioned in October 2023, showed that KUSCCO’s loan portfolio stood at Sh6.47 billion, comprising Sh3.37 billion from the Central Finance Fund, Sh2.9 billion under KUSCCO Housing Rural, and Sh191.7 million through KUSASA.
A separate audit by the Ministry of Cooperatives and MSME Development submitted to Parliament found that senior staff and board members received questionable loans, including Sh27.9 million to George Ototo, Sh9.3 million to George Owing and Sh4.5 million to Kenneth Kimaiyo.
As a result, several SACCOs have written off millions of shillings invested in KUSCCO following the Sh12 billion fraud scandal. Affected institutions include Afya Sacco (Sh361.6 million), Mhasibu Sacco (Sh13 million) and KMA Sacco (Sh525 million). While some losses have been written off, others are being contested as KUSCCO initiates refunds.
Despite the losses, Tower Sacco’s profit after tax rose to Sh1.1 billion in the year ended December 31, 2025, from Sh848.9 million in 2024.
“Loans remain the largest and core asset of the SACCO. During 2025, the SACCO disbursed loans amounting to Sh16.3 billion, translating to an average monthly disbursement of Sh1.36 billion,” said Tower Sacco CEO Peter Kuria.
