NAIROBI,Kenya,May 30-Afya Sacco Society has written off a staggering Sh361 million that was lost in the now-infamous Kenya Union of Savings and Credit Co-operatives (KUSCCO) scandal, according to its latest consolidated annual financial report for the year ending 31 December 2024.
In the report, under the provision on receivables, Afya Sacco listed a specific write-off amounting to Sh361,625,466, attributed to losses incurred following the collapse of investments with KUSCCO.
The SACCO says the amount significantly contributed to the its total financial and operating expenses, which rose to Sh1.35 billion in 2024 from Sh1.17 billion in 2023.
The scandal surrounding KUSCCO, which rocked the cooperative sector, saw several Saccos across the country lose billions in member deposits due to alleged mismanagement and questionable investment decisions by the apex body.
Afya Sacco is among the most affected, with this massive write-off reflecting the long-term financial impact on its books.
The SACCO says despite the setback it has reported a net interest and other operating income of Sh1.51 billion in 2024, a modest rise from Sh1.37 billion in 2023.
However, this performance came amid a notable drop in interest income from loans and advances, which fell from Sh2.3 billion in 2023 to Sh1.6 billion in 2024.
Personnel and administrative expenses were recorded at Sh511 million and Sh139 million respectively.
Governance and marketing expenses also declined, with governance spending dropping from Sh225 million to Sh150 million, and marketing from Sh50 million to Sh13 million.
The write-off comes amid broader efforts by the cooperative sector to recover from the financial damage caused by KUSCCO’s collapse and highlights the ongoing challenges facing credit unions in safeguarding member funds.
Earlier,Co-operatives and Micro, Small and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya Inaugurated KUSSCO committee of experts to oversee reforms and steer asset recovery as part of government’s broader efforts to restructure SACCOs.
