The Kenya Union of Savings & Credit Co-operatives (KUSCCO) has started auctioning multimillion properties of members as it grapples with the loss of funds due to alleged mismanagement.
In November 2024, an internal audit revealed that KUSCCO had lost at least Ksh12.5 billion due to illegal withdrawals and widespread mismanagement, which has led to several arrests and placed a financial loss on member SACCOSs.
The Union’s interim management in an advertisement on February 21 announced that it has started auctioning houses and land of members who defaulted on mortgages as it attempts to cut losses occasioned by the alleged mismanagement.
KUSCCO listed individual clients whose properties ranging from plots, unfinished buildings, apartments, and motor vehicle workshops are set for auctioning.
The houses are located in different parts of the country including Nairobi, Kitengela, Kiserian, Kisumu, Webuye and Machakos, among others.
KUSCCO Announces Auction of Multimillion Assets
Properties listed for auction in Nairobi County include a bungalow near Mountain View Road, a maisonette on Menengai Drive, an apartment in Block B No. 303 along Ngong Road, and a bungalow in Komarock Estate.
Additionally, two dwelling blocks and a bungalow located in Chamkombe, Migori County, have been put up for auction.
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Also advertised for auction in Nyanza is a double-story house under construction in Kisumu near the International Airport.
In Machakos, 0.111 acres of absolute land near Joska, 0.111 acres of absolute land near Katani Primary School, and a maisonette near Seme Dispensary are set to be auctioned.
A small bungalow and vacant plots in Kajiado County, two blocks of shops and a restaurant along the Nanyuki–Meru Road near Tulili, a 60 ft. by 100 ft. parcel of absolute land in Kiambu County, and 0.0863 hectares of absolute land in Kwale are also up for auction.
KUSCCO directed all interested purchasers to view the listed properties on prior arrangements.
Also, the union noted that the sale of the assets is subject to a reasonable reserve price and that the transactions involve strictly cash at the fall of the hammer.
Reserve prices are usually set at not lower than 75% of the prevailing market prices of what is being auctioned
The auction is set to be held at least 14 days after the day of notice.
Arrests made after loss of billions
This announcement comes after four suspects arrested in connection with the multi-billion-shilling fraud scandal at KUSCCO were arraigned in court.
In a statement on Friday, February 14, the Directorate of Criminal Investigations (DCI) said that the four who were presented at the Milimani Law Courts face various charges including conspiracy to defraud, stealing by company directors, and making a false document.
“As the four suspects cool their heels in the cells, the courts have issued summons to appear before the court to the former KUSCCO Managing Director, George Otieno Ototo who is required to appear for plea taking on the same day his co-accused persons will be awaiting the determination of the bond terms,” DCI said.
The four were arrested for allegedly cooking financial statements and theft that put Ksh13.3 billion belonging to depositors at risk.
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The arrests came after the Inspector General of Police Douglas Kanja assured that NPS will leave no stone unturned in investigating the matter, as he received the KUSCCO forensic report from the Cabinet Secretary for Cooperatives and MSMEs Wycliffe Oparanya.
Probe launched
CS Oparanya had on Tuesday handed the PricewaterhouseCoopers (PwC) forensic audit to IG Kanja for an in-depth probe and prosecution of those culpable.
The 208-page PwC audit retrieved the trove of incriminating information from M-Pesa statements, e-mails, computer logs, and documents of at least 23 top managers at the Sacco in a review that placed eight executives in the spotlight.
They included then managing director George Ototo, finance manager George Owino and Chairman George Magutu.
At the end, Ksh13.3 billion has been lost, leaving the umbrella body of Saccos insolvent to the tune of Ksh12.5 billion, putting at risk the Ksh24.8 billion it received from Saccos.
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