NAIROBI, Kenya, Mar 22 – Mhasibu DT SACCO has disclosed a Sh480.6 million deposit tied to Kenya Union of Savings and Credit Co-operatives that remains unpaid more than a year after maturity.
The SACCO said the amount relates to a fixed deposit certificate that matured in January 2024 but has not been honoured despite a withdrawal request.
“KUSCCO Deposits Receivables includes KShs 480,610,834 relating to fixed deposit certificate… which matured on 16.01.24,” the SACCO said, adding that “KUSCCO did not honor the withdrawal request on the due date.”
Mhasibu has since moved to court to recover the funds, with the case still ongoing, while also adopting a cautious financial approach.
“The SACCO filed a case in court demanding KUSCCO to pay the owed amount… The Board resolved to start annual provision for impairment of Sh34 million,” it said.
The lender has so far received partial repayments of Sh4.39 million in 2025, offering limited relief against the outstanding balance.
The dispute comes amid a wider crisis at KUSCCO following a forensic audit that uncovered financial irregularities, including fraud, mismanagement and inflated reporting.
Findings pointed to non-performing loans of about Sh3.7 billion, overstated profits of nearly Sh798 million and irregular commissions amounting to Sh2.7 billion.
The audit also indicated the institution could be technically insolvent, with liabilities exceeding assets by an estimated Sh12.5 billion, raising concerns over its ability to meet obligations to member SACCOs.
Losses linked to the scandal are estimated at over Sh13 billion, affecting hundreds of SACCOs that had invested member funds with the umbrella body.
The fallout has triggered regulatory intervention, investigations and restructuring efforts, with authorities warning that recovery of funds may be prolonged and potentially partial.
