NAIROBI, Kenya, May 6 – The Kenya Union of Savings and Credit Co-operatives (KUSCCO) board of directors has been dismissed over failure to steer the union effectively.
In a statement, the cooperatives and Micro, Small, and Medium Enterprises Cabinet Secretary Simon Chelugui stated that the board has been executing inappropriate such as declaring bonuses, dividends, and interest despite the Union incurring losses.
Furthermore, Chelugui pointed out that the board has been recurrently mismanaging the Union’s resources which include creative and unreliable financial records.
“Effective immediately, I, the cabinet secretary of cooperatives and Micro, Small, and Medium Enterprises(MSMEs) development, hereby announce the dismissal of the current board of directors,” he stated.
“It was concluded that the current board of directors has failed in its duty to steer the union effectively,” he added
Chelugui has thus directed the commissioner for cooperative development to appoint a new interim board comprising 15 members which are required to be drawn from leaders of affiliate cooperatives.
The interim board will be mandated to oversee the transformation and rehabilitation of the Union.
“Further the commissioner for cooperative development is directed to appoint an interim board comprising fifteen members drawn from esteemed leaders of affiliate cooperatives, in accordance with the Cooperative Societies Act CAP 490 Law of Kenya,” he added.
The CS has affirmed that the step is in light of the government’s commitment to safeguard the interests of cooperative members and will be pivotal in promoting sustainable development across cooperative enterprises in the country.
