58 SACCOs in Kenya are at risk of having their assets auctioned after defaulting on Ksh1.36 billion in loans from Kenya Union of Savings and Credit Co-operatives (Kuscco). This crisis stems from a larger financial scandal involving Kuscco, which saw Ksh13.3 billion in Sacco deposits jeopardized through alleged fraud.

• The defaulting SACCOs owe Ksh987.86 million more than their collateralized deposits.
• The debt crisis is linked to the collapse of Kusscco, which underwent a forensic audit by PricewaterhouseCoopers (PwC) revealing significant financial misconduct, including forged signatures.
• The Sacco Societies Regulatory Authority (SASRA) attributes losses of Ksh14 billion to legal and policy loopholes, impacting 201 SACCOs.
• Cabinet Secretary for Co-operatives and MSMEs Development, Wycliffe Oparanya, has formed a committee to review the outdated SACCO Societies Act of 2008.