Govt plans to rename KUSCCO to KEFESCO after Sh13bn loss

Kenya's government intends to rename the troubled Cooperative Development body, KUSCCO, to KEFESCO, in light of a financial disaster that incurred losses exceeding Sh13 billion. Cooperative Development Commissioner David Obonyo informed KUSCCO shareholders of the proposed name change in advance of a special general meeting planned for August 28.

During the meeting, the board will present a report on the union's current state and address other operational issues. Officially, the commissioner cited Section 27(8) of the Cooperative Societies Act, coupled with rules 20(2) and 21(2) of the Cooperative Societies rules, granting him the authority to summon a special general meeting.

This meeting is set to convene at All Saints Cathedral Church Hall, commencing at 9:00 am, on August 28, 2026, to deliberate on the following agenda. The notice urges all KUSCCO shareholders to appoint two representatives for the meeting. The restructuring plan stems from a 2025 PwC audit revealing a financial deficit of Sh12 billion to Sh13.3 billion at KUSCCO.

The audit implicated ghost loans, falsified commissions, and executive mismanagement as the primary causes of the financial debacle. Consequently, several Saccos were compelled to write off millions of shillings invested in KUSCCO, with notable write-offs from Stima DT SACCO (Sh108 million), Balozi SACCO (Sh437.5 million), and Afa SACCO (Sh361.6 million), among others.

The government has been instrumental in addressing KUSCCO's financial standing and fortifying the organization's governance structures. The special general assembly aims to furnish shareholders with an update on the union's status as the government progresses with the restructuring under the proposed KEFESCO designation.