The Kenya Union of Savings and Credit Co-operatives (KUSCCO) is preparing to auction off a portfolio of real estate assets in a nationwide campaign, with 50 properties slated to go under the hammer in June.
- •The sale will unfold in three phases scheduled for 5th, 10th, and 13th June, spanning multiple counties including Nairobi, Kiambu, Kisumu, Kajiado, Machakos, Mombasa, and Kakamega.
- •The auction comes at a time of intense scrutiny for the central co-operative body, which has been grappling with internal turbulence following the release of a forensic audit that flagged financial irregularities running into billions.
- •The properties on offer vary widely, comprising residential and commercial units, apartments, maisonettes, bungalows, and undeveloped plots.
Several listings are located in high-demand areas. Noteworthy among them are a multi-storey residential block in Kisumu near Community Life Church, a sizable plot in Kiserian, and various properties in Kitengela. In Nairobi, the catalog includes apartment units in Kileleshwa and Nyayo Estate, as well as a maisonette in Eastlands and a three-storey dwelling block in Umoja.
Coastal real estate includes properties in Mombasa’s Bamburi area, a business-residential property in Shanzu, a standalone unit in Likoni, and an incomplete building in Bombolulu. Machakos County will see the auctioning of vacant parcels in Joska and Sabaki, along with commercial structures in the region.
In Kakamega and Migori, parcels close to schools and trading centers, as well as a vehicle workshop and a residential block near Nyamataro in Kisii.
The Path to Collapse
In November, an internal audit revealed the Union had lost KSh 12.5 billion as a result of illegal withdrawals and widespread mismanagement. It later emerged that the Central facility’s directors held insider loans worth KSh 192.8 million. The KUSSCO Managing Director George Ototo took out the largest chunk of the loans — KSh 103.11 million — followed by George Owino (KSh 17.98 million) and Kenneth Kimaiyo (KSh 9.5 million).
The audit also revealed that a large chunk of the loans had been defaulted on and that some of the directors had taken facilities exceeding their deposits. Some of the ex-officials of the defunct central Sacco have already been charged in court and an interim board set up to oversee the liquidation of KUSCCO and recover funds saved by 247 Saccos.
Several Saccos allayed their members’ fears that KUSCCO loss would affect their yearly financial positions, with Stima Sacco recording their KSh 108 million savings as provision . However, like other smaller Saccos, Stima Sacco was also eager to get back their money.
The KUSCCO Central Finance Facility (CFF) began encountering significant challenges precipitated by panic withdrawals between October 2023 and January 2024, affecting its operations and ability to reimburse deposits to members.