Ukaguzi Sacco reports Sh47mn loan defaults, flags Sh50mn KUSCCO investment

Nairobi, Kenya - In its 53rd General Meeting on March 28, 2026, Ukaguzi Sacco disclosed a Sh47.03 million loan default in 2025, while the recovery of a Sh50 million KUSCCO investment remained uncertain. Of the defaulted loans, Sh3.27 million were considered losses after prolonged unpaid status, Sh13.95 million were classified as doubtful or substandard, and Sh29.81 million were overdue by 31 to 90 days.

The Supervisory Committee cautioned about high default rates, recommending stricter credit scoring and eligibility checks to minimize losses. As of December 31, 2025, the Sacco's loan portfolio expanded by 6.68% to Sh3.02 billion, while new loans reached Sh1.69 billion, up from Sh1.68 billion in 2024. The investment in KUSCCO, however, yielded only Sh756,705 in 2025, accounting for a mere 1.43% of the anticipated amount.

The Sacco also reported Sh98.85 million in unpaid member contributions due to employers' late remittances. Despite these challenges, the Sacco's operating income grew to Sh510.90 million in 2025, surpassing the budgeted Sh388.45 million by 31.5%. Nonetheless, expenditures soared to Sh398.36 million, exceeding the budget of Sh375.37 million.

Membership rose to 2,455 from 2,376 in 2024, prompting the committee to advocate for enhanced risk management, better oversight, and a tax exposure review.