NAIROBI, Kenya, Mar 20 – Ushuru Savings and Credit Co-operative Society (Ushuru Sacco) has written off Sh5 million linked to the troubled Kenya Union of Savings and Credit Co-operatives.
The write-off, disclosed in its latest annual report, reflects an impairment on KUSCCO shares, reducing the investment’s value from Sh15 million to Sh10 million.
The Sacco also booked a Sh5 million impairment charge, which weighed on its earnings during the year.
Despite the hit, Ushuru Sacco posted a net surplus of Sh182.6 million for the year ended December 2025, up from Sh128.8 million previously.
Growth was driven by strong interest income from loans, which rose to Sh752 million, and improved credit quality that saw a reversal of loan impairment charges.
However, the KUSCCO exposure highlights wider risks in Kenya’s cooperative sector, where Saccos pool funds into umbrella bodies for investment and liquidity support.
Ushuru Sacco also made provisions on other KUSCCO-linked exposures, including savings held in the Central Finance Fund, signalling a more cautious approach.
The development comes as regulators tighten oversight on Saccos, pushing for stronger risk management and transparency.
A forensic audit by PricewaterhouseCoopers last year revealed that about Sh13.3 billion was lost through fraud, embezzlement, and mismanagement, with Sh24.8 billion in Sacco deposits flagged as at risk.
